Chile’s state-owned oil company Empresa Nacional del Petróleo (ENAP) sold $600 million worth of 10-year bonds in the international market on Wednesday, according to a source involved in the deal.
ENAP priced the 5.95% 2034 notes at 98.523 cents to yield 6.15%, or 187 basis points over the US Treasury bonds, the person said. The company opened the initial price talk in the 215 basis point area and set guidance at around 190, plus or minus three basis points, before launching the deal, the source added.
Bank of America, Itaú BBA, JPMorgan, Santander and Scotiabank were joint bookrunners on the Rule 144A/Reg S offering, according to the person.
ENAP plans to use the proceeds to fund an ongoing tender offer for notes maturing in 2026 and 2031, with the remainder earmarked for general corporate purposes, according to an investor presentation to seen by LatinFinance.
Moody’s assigned the notes a Baa3 rating while S&P Global gave it a BBB-.
The Chilean company last issued $500 million worth of 10-year bonds in April last year to fund a buyback.