Category: Chile

The board of Chilean copper miner Codelco is expected to discuss the sale of a 40% stake it holds in power company EC-L, according to government sources. Analysts have estimated the stake to be valued at about $1.1bn. In September, the Chilean copper miner hired JPMorgan and LarrainVial to explore strategic alternatives for the stake. Codelco co-owns E-CL with France’s GDF Suez, which holds a 52.4% stake, in addition to a 7.6% free float. Proceeds of the sale will be used to finance Codelco’s investment plans.

Chile’s Corpbanca has called a January 27 shareholder meeting to propose a capital increase equivalent to $750m, or about 15% of the bank’s value. It plans to issue 40bn shares. The bank closed last week at CLP8.7. In September, it emerged that Corpbanca was in preliminary talks to sell a minority stake of no more than 10% to Banco do Brasil via a capital increase. Celfin estimates that as of July, Corpbanca had $1bn book value and annualized return on average assets of 20%.

Chile’s finance ministry said last week it plans to issue this year approximately $6bn equivalent in domestic debt denominated in pesos and inflation-indexed UF units. Issuance will include up to CLP450bn in 7-year bonds and a maximum of CLP450bn in a retap of 10-year bonds. The sovereign also plans to issue up to UF20m in a tap of its 5-year UF bonds, up to UF18m by reopening the 10-year, up to UF17m from a tap of the 20-year and up to UF17m through reopening the 30-year, the ministry says. The bonds will be placed via monthly auctions set to start in January.

Chilean natural-gas supplier Gasco has raised $116m equivalent by selling a 40% stake in local cement maker Polpaico. Gasco sold 7.31m shares at CLP7,500 each, CLP500 less than the asking price of CLP8,000. Some 25% was placed with retail, 30% with institutional investors and 45% to high net worth buyers. Banchile was the bookrunner. Proceeds will be used to fund Gasco’s development of projects in Chile and Colombia.