Codelco Considers Bond Issue

Codelco is heard considering a return to the bond markets, according to DCM bankers, having sent out an RFP. The state owned miner last raised funds internationally in January of 2009, with a $600m deal. Codelco faces around $15bn in investment needs over the next few years to maintain and increase copper production levels, Moody’s says in a recent report lowering the outlook its A1 rating to stable from positive. Codelco’s next maturity is $435m in November 2012, according to Credit Suisse. It has the option of domestic funds also, under a shelf filed last year. The Chile sovereign paved the way last month for Codelco, raising $1.52bn at lower levels than expected in its first cross-border bond issue since 2004. The Aa3/A/A+ sovereign drew more than $10bn in orders, according to bankers on it, and gave little concession on price. Citi, HSBC and JPMorgan managed the sale, and would be among competitors for the copper producer’s mandate.