Chile’s state-owned oil company ENAP issues $500m bonds

Citigroup Global Markets, Santander US Capital Market, Scotia Capital (USA) and SMBC Nikko were the initial purchasers of the bonds, in an operation carried out in conjunction with the launch of a tender offer for ENAP's international bonds maturing in 2024.

The Chilean state-owned company engaged in the exploration, development and production of oil, natural gas and liquefied gas, among others, raised $500 million with the operation and repurchased and redeemed early its existing debt maturing in 2024.

The remaining proceeds will be used for general corporate purposes.

ENAP’s CEO, Julio Friedmann, said: “This placement had an excellent rate in a challenging context and was fully synchronized with our business plan, liability restructuring strategy, and investment plan. There was a lot of international interest and it is a new signal that the market gives to our management and the country”.

For his part, José Pablo Gómez, ENAP’s administration and finance manager, said: “The success of this transaction reflects the positive perception that the market has regarding ENAP, considering the good results of 2022 and the strengthening of its financial profile, and where we are demonstrating that reducing financial debt is part of the success of the business that the company develops”.

Chilean law firm Morales & Besa advised the initial purchasers, with a team led by partners José Miguel Carvajal, Andrea Díaz and Santiago Martínez, together with associates Gonzalo Pereira, María Francisca Bannura, Abel Flores, María Luisa Portales, Lucia Bobadilla and Ignacio Quinteros.