Santiago Metro Preps Local Bonds

Empresa de Transporte de Pasajeros Metro, Santiago’s subway operator, has started private meetings with investors as it looks to issue bonds in the domestic market. It is considering an issue as soon as next week, and is able to issue UF1.5m ($70m) at up to 30 years, with details to be defined later in the week as the structure receives approvals. The funds are to be used to refinance debt. Santander is managing the sale, rated AA/AA+ on a national scale. Metro last issued in October 2011, placing UF5.2m in 21-year bonds at a 3.75% coupon to yield 4.00%, or 129bp over benchmark, also through Santander.