Bonds Still on the Table for Colombian Generator

Colombia’s Isagen may still consider an international bond issue this year, if conditions permit, its CFO tells LatinFinance. Though the generator is not in need of funds, it would be interested in raising $500m, to have on hand to improve its capital structure and finance growth. “Rates are still very good in the international markets now. There is a lot of volatility, but there are also windows. We want to be prepared,” Juan Fernando Vasquez says. He notes they would expect to pay in the neighborhood of 6%, compared to 8% in Colombia’s domestic bond market. Isagen is maintaining contact with international investors, who show a tremendous appetite for Colombian corporate bonds, and with banks, though it has not officially hired any, he says. Isagen’s growth could come from Colombian government bidding processes to build new generation capacity, or from expansion opportunities in other LatAm markets. Exporting power to neighboring countries should be an interesting option once necessary agreements are reached, he notes. Isagen, rated BBB minus/BB+, now has about $850m in debt. Its current $2.7bn expansion plan is already financed.