EFE Places Bonds

Chile’s state rail company EFE has placed roughly $100 million-worth of local currency bonds. The inflation-indexed 30-year bonds, which are guaranteed by the Chilean government, will finance part of the company’s $1 billion 2003-2005 investment plan. Fitch Ratings and Humphreys rated the bonds AAA. Demand for the bonds was 2.7 times the initial offer, with the final interest rate at 3.79%.