UPDATE 1-Chile's Codelco issues $980 mln bond to help fund investments

martes 28 de octubre de 2014 17:12 GYT
 

(Adds Codelco comment, recasts with pricing)

SANTIAGO Oct 28 (Reuters) - Chile's Codelco, the world's largest copper producer, said on Tuesday it has issued $980 million in 30-year senior unsecured notes to help finance an ambitious investment plan.

The bond carries a 4.875 percent annual coupon and 4.966 percent yield.

"These conditions are very competitive considering the reality of international markets, especially for a Latin American issue and reflect Codelco's quality credit (rating)," the state-owned company said in a filing with the local SVS securities regulator.

Fitch Ratings gave the bonds, due in 2044, an A+(EXP) rating, while Moody's Investors Service gave them an A1 foreign currency rating, saying the ratings outlook is negative.

The bond issue attracted over 240 investors from the United States, Europe, Asia and the Middle East, said Codelco.

The book runners for the deal were HSBC, BofA Merrill Lynch and Mizuho Securities, Thomson Reuters IFR reported earlier on Tuesday.

Last week, Chile's Congress approved the government's capitalization plan for Codelco, under which the company will receive $4 billion over the next five years to help fund its investment program.

Codelco plans to spend around $23 billion through 2018 to upgrade its aging deposits to counteract falling ore grades.

Planned projects include a $6.8 billion expansion of its Andina mine near Santiago, which faces strong community opposition, and a $4.2 billion conversion of open-pit Chuquicamata to an underground mine. (Reporting by Anthony Esposito; Editing by Steve Orlofsky and James Dalgleish)