Chilean Railway Preps Local Bond

Chilean state railway company EFE could look to issue up to $350m-equivalent in UF-denominated bonds in the local market before the end of the year, according to sources familiar with the plans. The issuer is in the process of registering the transaction, which is expected with a maturity of more than 20 years and a coupon of 3.7%. The proceeds are expected to be used for refinancing liabilities and financing the company’s plans. Rated AAA, the issuance is guaranteed by the state. EFE last issued in the domestic bond market in 2005, according to Dealogic data.