CMPC issues a bond in the US for USD 500 million at a record interest rate
-High interest level expressed by investors led to an oversubscription of more than 6x the issuance amount
-“This is an important sign of confidence by international investors both in CMPC and our country,” commented CMPC CEO Francisco Ruiz-Tagle.
Santiago, January 8th, 2020
The CMPC bond issuance for the total amount of USD 500 million with a 10-year maturity in the US market sparked a high level of interest in international investors. This in turn translated into a high level demand and a record low nominal interest rate for the bond.
The total demand for the transaction surpassed USD 3 billion – an oversubscription of more than 6x. Demand came not only from US investors but also European, Asian and Latin American investment funds.
The bond will pay a nominal interest rate of 3.85%, while the yield to maturity rate was 3.87% with a spread of 2.00% over the 10-year US Treasury Bond.
“This is the lowest rate that CMPC has ever achieved for an issuance in the US capital markets, surpassing even the last bond issued there in March 2017, which reached an issue effective rate of 4.42% and a nominal interest rate of 4.375%,” pointed out CMPC CEO Francisco Ruiz-Tagle.
“We think that this is an important sign of confidence by international investors both in CMPC’s performance and outlook as well as in our country as a whole,” added the executive.
The transaction was executed by JP Morgan Securities, Scotia Capital, MUFG Securities and Santander Investments.
Read the Press Release in here Press Release – January 9, 2020
