Codelco Achieves 128bp Spread For 30-Year Bond

Chilean state-run copper miner Codelco successfully sold $500 million of 30-year bonds in the international markets Thursday, achieving a remarkable spread of 128 basis points over comparable US Treasuries, 2 basis points below the yield of its 2035 bond. The bonds sold with an annual coupon rate of 6.15%. Deutsche Bank and HSBC led the deal. Codelco will use the money raised to finance part of its debt and for capital expenditure. Codelco last tapped international markets in September 2005 when it sold $500 million of 30-year bonds, at a rate of 5.625%.