Enel Chile drew roughly $2bn in orders ahead of pricing a $1bn June 2028 bond on Thursday, injecting impetus into an otherwise slow LatAm corporate market.

After completing a scheduled and publicized roadshow on Wednesday, the power utility on Thursday morning announced initial price talk (IPT) in the 230bp area of US Treasuries, DCM bankers confirmed.

Enel’s new issue was expected to be isolated from the bulk of volatility that has slowed the cross-border space of late. Unlike its neighbors, Chile has little political volatility and no upcoming elections. As a tried and tested utility, Enel also provides that general safe bet for investors.

“They have generation [power], distribution, green energy and considerable cash flow and can fund capex with cash,” one banker with one of the bookrunners said.

Under the auspices of today’s conditions being somewhat of a “new normal,” Enel’s early price talk was widely considered fair value by four sources who spoke to LatinFinance.

“Pricing is spot on,” one DCM banker said yesterday afternoon. “Given conditions, this deal is easier to price… It is Chile, so it is unrelated to volatility and it is a safe bet. A utility.”

Leads welcomed between $2.5bn and $3bn in orders at the transaction’s peak and promptly tightened guidance to 215bp over Treasuries. The deal launched on the tight end of guidance, while final orders rounded out at roughly $2bn, three of the four sources confirmed.

Those monitoring the trade looked at a variety of securities from Enersis, Enel, Chilean utility Colbun and even less-liquid paper from AES Gener.

“I think this is fair and 200bp would have everyone happy,” the second of the four sources said of guidance. “If you feel it is a better credit than Colbun, then maybe fair value is 195bp over Treasuries.”

On Thursday, Colbun’s 2024s were about 165bp, while Enel’s own 2024s were sitting between 155bp and 160bp in secondary markets, sources added.

Bookrunners priced the new issue at 210bp over US Treasuries with a 4.875% coupon to yield 5.026%, or a reoffer value of 98.824. Moody’s rated the bond Baa2 and S&P Global Ratings gave it a BBB+.

The former rating agency said in a report that Enel Chile held a “leading position” in local energy distribution and generation markets with contracted prices “substantially above system marginal costs.”

Sources inconclusively considered the new issue concession at 10bp.