EEB Clinches Call Funds

Empresa de Energia de Bogota (EEB) has priced a $610m 10NC5 bond, essentially meeting its funding needs to call its existing 8.75% 2014 bonds. The Baa3/BB+ Colombian utility priced at par to yield 6.125%, or UST+406.4bp, coming in line with 6.125%-6.25% guidance and low 6% whispers. The bonds jumped up 1.8 points in the grey ahead of pricing, according to an investor. Empresas Publicas de Medellin’s (EPM) 7.625% $500m 2019s, considered a direct comp, were trading slightly below 5% Thursday. The deal was seen coming 75bp wide to EPM, though one investor estimates a 40bp premium to EPM considering the rating differential and the two-year tenor extension. The sovereign’s own 10-year bond had been trading at 3.57% Thursday. Deutsche Bank and Santander were leads. Last month, EEB has also launched a COP700bn ($360m) equity follow-on and is expected to upsize the deal to about COP770bn.