Codelco Gets Debt Nod

Shopping the DCM banks for bookrunners since August, Codelco has revealed its board approved in July the issuance of up to $1.8bn in debt at maturities up to 30 years. The state-owned copper producer is heard considering seriously a dollar bond, though the approval also contemplates domestic bonds and bank loans. Codelco says it did not reveal the authorization until Friday due to “pending negotiations with third parties.” Conditions for a dollar bond might prove too good to resist with UST still very low, the Chilean sovereign setting a $1bn 2020 benchmark in July to yield 3.890%, and Chilean banks and corporates being generally well-received this year. The A1/A miner is a popular though very infrequent issuer, having last sold $600m in 7.5% 2019s in January 2009 through HSBC and JPMorgan, to a $1.25bn order book. Citi, HSBC and JPMorgan, which led the Chile sovereign deal, are favored to run the copper producer’s bond.