Cencosud agrees on successful placement of USD 1 billion International Bond at its lowest rate in history

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Santiago, July 12, 2017.- Cencosud has reached an agreement today with investors on the terms of a new USD 1 billion international bond placement with a 10-year term, which initially received demand exceeding USD 3.5 billion. The operation, scheduled to be finalized on Monday, July 17, aims to refinance part of its 2021 and 2023 bonds through a tender offer.

The operation will allow Cencosud to repurchase USD 492.8 million of its bonds maturing in 2021, originally issued for a total of USD 750 million, and additionally, USD 257.2 million of its bonds maturing in 2023, originally issued for a total of USD 1.2 billion. The remaining funds raised from the successful placement will be used to pay off other minor liabilities.

It is worth noting that this refinancing operation was conducted at an annual placement rate of 4.42%, the lowest ever achieved in Cencosud's history. This will enable the company to improve its liquidity and debt maturity profile.

The placement is another step in the company's strategy of financial discipline and strengthening, which it has identified as priorities, and it clears the path of major debt maturities for the next 5 years.

“We are very pleased with the market's response and interest in this operation, surpassing all our expectations. Considering the challenges and opportunities we face in the region, this is a show of confidence in the work and capabilities of the Cencosud team and demonstrates that we are moving in the right direction.”

said CFO Rodrigo Larraín.

The financial operation is being led by Bank of America Merrill Lynch and JP Morgan. The Bonds have been rated BBB- with a Stable Outlook by Fitch Ratings and Baa3 with a Stable Outlook by Moody's Investor Services.