Colbún Places $320m In Local Bonds

Chilean electricity provider Colbún sold around $320m worth of local inflation-adjusted bonds on Thursday, issuing the paper in two tranches with maturities of 6 and 21 years. The 6-year notes sold to yield 3.56% and the 20-year paper to yield 4.07%, according to a filing by Colbún with the local stock exchange. Santander Investment led the issues. Last week the generator had announced it would place up to $425m via the sale of 8- and 20-year bonds. Colbún has succeeded in improving its financial position in recent years – boosting liquidity and extending its debt profile. The company has been investing in expanding generation capacity and expects three new facilities to come on line in 2007, generating an extra 145MW or 700 GWh a year.