Endesa Chile Weighs $400m Refi

Generator Endesa Chile is considering dollar bonds, local notes and syndicated loans to refinance an 8.5% $400m bond due next year, CFO Manuel Irarrazaval tells LatinFinance. “Bank loans are difficult, as rates are higher due to the credit crisis in the US,” says the official. Irarrazaval expects to pay more than the Libor plus 75bp it got when refinancing a similar $400m bond in June with a 6-year loan from BBVA, Caja Madrid, Bank of Tokyo, Santander and Banesto. While Chilean rates are also higher, he still sees a very strong local market. Endesa has capex plans of more than $700m per year for the next 5 years as it looks to add 2GW of generation in Chile, Peru, Colombia and Brazil.