Chile

Chilean power company Empresa Eléctrica Cochrane sold $430m of 7.5 year amortising notes on Wednesday as part of a bond and loan refinancing of project finance debt.

State Grid Corporation of China is in talks with banks for a loan to support its $2.23bn acquisition of Sempra Energy’s Chilean business.

Bankers and market analysts said there was no sign bond markets were seriously concerned about continued social unrest in Chile, as pulp and wood panel producer Celulosa Arauco y Constitución eased its way to a $1bn dual tranche new issue this week.

Celulosa Arauco y Constitución, the Chilean pulp and wood panel producer, is looking to issue what it describes as a “sustainability” bond, as Chile’s focus on environmental topics spreads to the corporate world.

The Inter-American Development Bank has published a report promoting the use of covered bonds as a funding tool for green developments in Latin America and the Caribbean. But it remains to be seen whether risk-averse covered bond investors are ready to take the plunge into emerging markets — particularly given regulatory hurdles in the swaps market.

Chilean copper miner Codelco is having trouble persuading existing note holders to part with their paper, after printing $2bn of new debt at record low yields in September.

Corporación Nacional del Cobre de Chile (Codelco), the world’s largest copper producer, extended the run of well received long dated bonds from Latin American issuers as it notched $2bn of new funding in a dual tranche offering.

Chile’s decision to issue a second green bond in two weeks with a 12 year euro transaction paid off in the shape of 64 first-time investors, as more Latin American issuers turn to green finance.

A pair of emerging market banks placed MTNs this week. In Australian dollars, Banco del Estado de Chile printed a 10 year note on Tuesday, while on Monday, Qatar National bank placed short end dollar paper.

Chile may be an expensive buy for many EM investors, but the country’s status as the top-rated Latin American sovereign is making it attractive for environmental, social and governance-focused investors, said debt capital markets bankers, after the government sold its second green bond in two weeks.

Chile’s head of international finance told GlobalCapital that issuing a green bond had helped the sovereign attract new investors used to buying lower yielding paper, making the deal a win-win for both borrower and buy side. It is planning to bring its next green deal in euros.

Chile’s head of international finance told GlobalCapital that issuing a green bond had helped the sovereign attract new investors used to buying lower yielding paper, making the deal a win-win for both borrower and buy-side. It is planning to bring its next green deal in euros