Santiago, September 9th, 2015.- Codelco successfully returned today to the international bond markets, via a record-size US$2.0 billion 10-year offering that took place in New York. Investors displayed a vote of confidence in Codelco and in Chile, with books over 3.0x oversubscribed, despite the recent slump in commodity prices and generally heightened market volatility.
The transaction was well-timed amid limited competing supply, ahead of the FOMC meeting on Thursday, September 17th, and with attractive UST10 rates at 2.20% (below the 3-month average of 2.26%). As a result, Codelco became the first Metals & Mining issuer to access the market post the August 2015 primary market shutdown, printing the largest Metals & Mining 10-year US$ benchmark in 2015 across all regions.
Codelco's fresh 10-year benchmark, with a coupon of 4.500% and a yield of 4.695%, set the stage for Latin American corporate Investment Grade issuers, which remained on the sidelines of the debt capital markets over the past 7 weeks. The terms and conditions achieved were very favorable, which shines light on Codelco's robust credit story, and highlights the unremitting support from its investor base as the company continues to execute its long-term development plan.
Codelco quickly built a very solid orderbook, both in terms of account quality and geographical distribution, that attracted more than 260 investors from around the globe; with 65% of the orders coming from the U.S., 20% from Europe, 10% from Latin America and 5% from Asia & Middle East; Codelco's well-rounded orderbook provides further evidence of the effectiveness of the company's extensive marketing efforts over the past decade. This transaction marked the seventeenth issuance by Codelco and was led by Bank of America Merrill Lynch, HSBC and J.P. Morgan.