EPM Heads to Bond Market

Empresas Publicas de Medellin expects to sell up to COP500bn ($257m) in domestic bonds today, according to people following the sale. It can choose among tenors of five, 10 and 20 years, with all three tranches IPC-linked. Credicorp Capital and Corredores Asociados are leading the deal, rated AAA on a national scale. Proceeds from the sale will be used for investment, including in the Ituango hydroelectric project. The $5.3bn generation project is expected to come online in 2018. Starting with Ecopetrol and Emgesa in September, the domestic bond market has seen several issuers, up from almost no issuance in the first eight months of the year. Banco Davivienda and generator Celsia are scheduled to follow next week.