SANTIAGO, July 2 (Reuters) - State-owned Chilean copper miner Corporacion Nacional del Cobre issued a 600 million euro ($816.9 million) 10-year bond on Wednesday in an effort to diversify its financing sources and to help fund its ambitious investment plan.
Over the next five years, Codelco, the world’s largest copper producer, plans about $23 billion in investments, including a controversial $6.8 billion expansion of its massive Andina mine.
“We decided to issue debt in Europe because we felt it was important to diversify the financing sources for Codelco’s investments and because the conditions were comparable to what we would have gotten in New York,” said Codelco’s chief financial officer, Ivan Arriagada.
The bond, Codelco’s first issue in euros, offered a coupon of 2.25 percent and a yield of 2.397 percent, said IFR, a Thomson Reuters service.
Chile’s government said on Tuesday it will provide Codelco with $200 million to help finance its investment plan and that it will send a bill to Congress in the third quarter that will assure that the company has long-term financing. ($1=0.7345 euros) (Reporting by Anthony Esposito; Editing by Peter Galloway)