EPM Gets Split Rating on Debut

Moody’s has assigned EPM’s new $500m+ 2019 bond a Baa3 investment-grade rating. The mark follows the BB+ given the Colombian utility by Fitch. EPM is roadshowing until Monday, and is expected to price the bond, its first in the dollar markets, next week. Investors say they expect a yield at a spread slightly back of the UST+410bp, about 110bp wide of the sovereign, which compatriot Ecopetrol got Thursday for its new 2019. The hefty order book for Ecopetrol and general bullishness about Colombia should translate into a decent turnout for EPM, depending on terms. JPMorgan and Bank of America-Merrill Lynch are managing the EPM transaction.