Chilean power generation company AES Andes plans to bring a new green bond to the international market in order to fund a tender offer that got underway this week, according to a source familiar with the deal.
AES Andes began calling investors on Monday to pitch the notes and has hired Citi, Goldman Sachs, Mizuho, Scotiabank and SMBC as joint bookrunners on the Rule 144A/ Reg S offering, the source said.
Concurrently, AES Andes announced an offer to repurchase any or all of the $118 million outstanding on its 5% 2025 bonds and as much as $100 million of its 6.35% 2079 notes.
The firm is offering $978.75 for every $1,000 in principal on the 2025s and an even swap on the 2079s, including $30 premiums, for notes turned in by March 15, according to a news release.
Subsequently, the company will pay $948.75 for every 2025 bond turned in by April 2 and $978 for every 2079 note.
Crédit Agricole is co-dealer manager on the buyback together with the banks appointed as bookrunners for the green bond sale.
Apart from the tender offer, AES Andes plans to use the funds to finance green investments and pay off existing bank debt, according to the source.
Santiago-based AES Andes is the subsidiary of US power generation company AES Corp.
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