ENAP Issues Domestic Bonds

ENAP has issued UF6m ($289m) in Chile’s domestic bond market, according to people familiar with the transaction. The state-owned oil company priced a UF2m, 5-year bullet tranche at 98.54 with a 3.4% coupon to yield 3.75%, or government bonds plus 113bp. A UF4m, 21-year bullet tranche priced at 94.70 with a 3.7% coupon to yield 4.09%, or government bonds plus 133bp. Demand for both tranches was said to exceed the amount offered, though the specific demand was not available. The proceeds are to be used to refinance debt. Banchile-Citi, JPMorgan and Scotia managed the sale, rated AAA/AA+ on a national scale. It was ENAP’s first domestic bond deal since a UF9.75m sale in 2009, according to Dealogic data. Chilean bankers say they expect this will be the last transaction ahead of the Chilean summer vacation period, with liquidity dropping off through February.