Eletrobras Joins 2009 Bond Pipeline

Eletrobras plans to raise a dollar bond of up to $400m in 2009, a spokeswoman tells LatinFinance. The transaction will occur only if there is a favorable window in the international markets next year, she adds. Tenor depends on market conditions and the deal has apparently not yet been mandated. The Brazilian utility has a budget of $1bn to fund in 2009, and may also consider selling shares to raise cash. It last hit the international DCM market in November 2005, raising $300m in 7.75% 10-year bonds through Dresdner Kleinwort and UBS. This year, it signed $600m A/B loan package in August. Also in the pipeline is Chilean state-owned copper producer Codelco with a $500m-$700m 10-year trade via HSBC and JPMorgan. Codelco has historically brought bonds every year in the fourth quarter, though last year it opted for a tightly priced loan. Expect Codelco to be among the first LatAm bonds out the gate when markets stabilize, likely early 2009, and high grade jumps back in.