Bolivia Takes Iberdrola Units

Bolivia’s government has nationalized two electric utilities controlled by Spain’s Iberdrola, according to the country’s energy ministry. Officials justified the takeover of Electricidad de La Paz and Luz y Fuerza de Oruro on the grounds that Bolivian consumers should have better electricity rates and improved quality of service. The government plans to offer compensation to Iberdrola within 180 business days. In June, the government took over Glencore International’s Colquiri zinc and tin mine, which followed the nationalization of an electricity transmission company owned by Spain’s Red Electrica. The nationalization moves have yet to significantly deter foreign investment, with Bolivia selling $500m in bonds at a 4.875% yield in October.