ENAP Readies Domestic Bond

ENAP is slated to issue up $300m-equivalent in Chile’s local bond market today, say people familiar with the transaction. The Chilean state-owned oil company can choose among a 6.4% coupon 3-year bullet peso-denominated tranche of up to CLP50bn ($105m), a 3.4% coupon 5-year UF-denominated bullet of up to UF6m ($288m), and a 3.7% coupon 21-year UF bullet of up to UF6m. The total issuance is not to exceed $300m-equivalent, and the issuer is heard favoring the 21-year tranche. The proceeds are to be used to refinance debt. Banchile-Citi, JPMorgan and Scotia are managing the sale, rated AAA/AA+ on a national scale. The issuance is expected to be among the last before the domestic bond market winds down ahead of the Chilean summer holiday period.