Colbun Charges Up 10-Year Issue

Chilean power generator Colbun is set to begin marketing today a $400m 10-year bond. The high-grade issuer will begin in Boston and the Los Angeles today, visit New York and Los Angeles Tuesday, before finishing in London and New York Wednesday. In a report assigning a BBB minus rating, S&P says it expects $250m of proceeds to be used for cancelling outstanding debt and $150m to finance expansion. Citi and JPMorgan are managing the sale. A sale would be the first cross-border bond from Colbun, according to Dealogic data, though it sold $81m in 2018 dollar notes on the local market in 2008. That same year, it raised a $400m 5-year syndicated loan led by ABN, BBVA, Citi, Itau and Santander, with JPMorgan among the participants.