Chilean Water Utility Readies Bonds

Aguas Andinas is preparing to place May 20 up to UF3m ($110m) in inflation-linked bonds in the Chilean market. The water utility plans to sell a combination including 3.1% of 2015 and 3.6% of 2018 bonds up to a UF3m limit. Proceeds will help fund investments at Aguas Andinas’ subsidiaries. Larrain Vial and BBVA are managing the transaction, rated AA+ on a domestic scale. The unit of Spain’s Aguas de Barcelona last visited the local market in April 2008, selling $109m equivalent in UF-denominated 3.000% of 2014 bonds to yield 3.223%. The deal is set to follow the May 19 sale of up to UF5m from Falabella’s Mall Plaza unit, through IM Trust and Banchile.