EFE Brings Size Back to Chilean Market

EFE has issued UF7.8m ($373m) in domestic bonds, giving the Chilean local market its largest sale in at least three years. The state railway company priced the 2037 bullet at 100.13 with a 3.70% coupon to yield 3.79%, or the BTU30 bond plus 91bp. The issuance saw 2.2x demand. Banchile-Citi managed the transaction, rated AAA on a national scale and guaranteed by the state. EFE last issued in the domestic bond market in 2006. Thursday’s sale was the largest domestic transaction in USD-equivalent terms since a $472m-equivalent deal from Transelec in 2006, though in purely UF terms it is only the largest since a UF10m sale from CMPC in 2009, according to Dealogic data.