Colbún Prepares Local Bond Issue

Chilean power company Colbún is preparing to issue up to $304 million worth of local bonds, the company said. The notes have been rated A+ by Fitch. The money raised from the bond issue will be used to finance investment, said Colbún. The power company has succeeded in improving its financial position in recent years – improving liquidity and extending its debt profile. The company has been investing in boosting generation capacity and expects three new facilities to come on line in 2007, generating an extra 145MW or 700 GWh a year.