ENAP Heads to Switzerland

Empresa Nacional del Petroleo (ENAP) has raised CHF215m ($235m) through its first-ever Swiss Franc bond sale, one of two Chilean CHF deals Wednesday, along with Banco de Chile. The state-owned oil company priced the 2018 at 99.885 with a 2.875% coupon to yield 2.900% or MS+228bp, 12bp tighter than initial price thoughts of MS+240bp. Pricing was in line with secondary levels seen on comparable dollar credits with ENAP paying about 20bp premium to access the CHF market, according to a banker familiar with the trade. After evaluating the USD and CHF bond markets, the Chilean opted for CHF given size of its funding needs and taking into account what it would have to pay in the USD bond market for the illiquidity of a smaller trade. The deal drew 2x demand, with 100 accounts heard participating, including private banking, retail accounts, asset managers, insurance companies and pension funds. Credit Suisse managed the A/BBB minus/Baa3 transaction, the first ever in the CHF market by a non-financial Chilean issuer, according to Dealogic data. ENAP previously tapped Chile’s local bond market this year, issuing UF6m ($289m) in Chile’s domestic bond market in January, through a UF2m, 5-year bullet tranche which priced at 98.54 with a 3.4% coupon to yield 3.75%, or government bonds plus 113bp and a UF4m, 21-year bullet tranche priced at 94.70 with a 3.7% coupon to yield 4.09%, or government bonds plus 133bp.