EFE Local Issue on Track

EFE should be tapping the Chilean domestic debt market in December, say people familiar with the state railway company’s plans. It is heard looking to issue $350m-equivalent in UF-denominated bonds in the local market. Banchile-Citi is managing the deal, 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 on a national scale, the issuance is guaranteed by the state. EFE last issued in the domestic bond market in 2005, according to Dealogic data.