Category: Chile

S&P has taken the BBB ratings on Petropower off CreditWatch negative after the February earthquake that hit Chile. It affirmed the Chile-based delayed coker facility and cogeneration project’s ratings and has them on stable outlook. “We consider that all the project agreements and protections in place should adequately protect bondholders until the facilities restore full operations,” the agency says.

Chile’s Grupo Phoenix and Danish renewable energy company Vestas Wind Systems are together investing $250m to finance the first stage of development of the Talinay Oriente wind farm. The unit is part of the Talinay wind farm and expected to generate 120MW. The Talinay wind farm as a whole is expected to become the largest of its kind in LatAm, generating 500MW and requiring an investment of over $1bn, according to Grupo Phoenix. Orlando Chacra, president of Phoenix, says in a statement that the wind farm will be developed in 5 stages. Once completed, it will have 243 wind turbines which should help eliminate 19m tons of carbon dioxide between 2011 and 2024.

Scotia Chile has issued 2 bonds for a total of UF3.5m ($138.6m) via Dutch auction. A UF2m bond due in 10 years priced at 100.63 with a 3.50% coupon to yield 3.45% and a UF1.5m deal due in 25 years priced at 104.86 with a 4.00% coupon to yield 3.73%. The bonds are rated AAA. Proceeds will be used to finance long-term assets. Scotia’s own brokerage in Chile, Scotia Sud Americano Corredores de Bolsa, handled the issue.

Scotia Chile says that today it will issue UF3.5m ($138.6m) in local bonds in 2 tranches via Dutch auction. A UF2.0m tranche will be due in 10 years and a UF1.5m tranche in 25 years. The bonds are rated AAA. Proceeds will be used for long-term lending. Scotia’s own brokerage in Chile, Scotia Sud Americano Corredores de Bolsa, will handle the issue.

Chile’s Coca-Cola Polar is planning to issue up to UF2.5m ($160m) in non-convertible bonds due in 10 years. IM Trust and Penta Corredores de Bolsa will manage the deal.

ATC Sitios de Chile, a subsidiary of American Tower Corporation (ATC), says it has launched operations in Chile. The company recently entered into agreements to purchase up to 287 wireless communication tower sites from Telefonica Chile. It purchased 113 of the tower sites, on which Telefonica, is the anchor tenant, at an initial closing on June 29. ATC expects to close on the remaining sites by the end of 2010, subject to closing conditions. “Our launch of operations in Chile extends our presence into a vibrant wireless market where recent spectrum auctions are expected to drive investment in network expansion by existing wireless carriers as well as new entrants,” says ATC CEO Jim Taiclet. “We will further leverage our existing regional operations as we continue to pursue opportunities for future expansion and investment,” he adds. ATC owns and operates communications sites in the US, Mexico, Brazil, Chile and India.

Chile’s state oil company ENAP says it plans to refinance up to $500m in short-term debt by issuing bonds or signing a loan. It is awaiting authorization from the finance ministry. However, the company adds that it is not in the process of issuing international bonds, despite a recent local press report to the contrary. ENAP notes that any new issue needs the approval of the company’s board as well as the country’s finance and economy ministries. It adds that the board has given its assent to debt refinancing and the request to begin the process was approved by the finance ministry June 22.

Chile’s Banco Bice has issued UF2m ($79m) in local 10-year bonds through Dutch auction. The notes priced at 100.30 with a 3.50% coupon to yield 3.49%, a spread of 59bp over the BCU-10 benchmark. Proceeds will be used to finance lending. Bice Inversiones Corredores de Bolsa managed the issue.

Chile car loan company Forum Servicios Financieros has issued UF1.3m ($51.4m) in 2.5-year local bonds. The notes came at 98.90 with a 2.20% coupon to yield 2.68%. Proceeds will be used to enhance liquidity. BBVA, which owns a 50% stake in Forum, led the sale.

Chile-based Banco Bice plans to issue UF2m ($79m) in local bonds due in 10 years. The issue is set to happen July 6. Bice’s brokerage unit will manage the sale.