GEB arranges bonds to pay for Peru plans

GEB arranges bonds to pay for Peru plans

Bonds Debt Capital Markets Corporate & Sovereign Strategy M&A Project & Infrastructure Finance Energy Electricity Gas Peru Colombia Andean

Grupo Energía Bogotá (GEB) is set to issue a $100m bond in early September to finance investments in Peru, a banker working on the deal told LatinFinance.

GEB's natural gas business in Peru, Cálidda, will issue the notes in the local market and use the proceeds to fund part of the $180m construction of two new power plants for Lima and Callao.

Peruvian investment bank Credicorp is the sole bookrunner on the deal.

"Given the low rate environment right now, I see them doing a long bond, maybe 10 to 15 years," said Germán Cristancho, head of research at Davivienda's brokerage division.

Cristancho added that Cálidda could use some of the proceeds to refinance existing debt.

In Peru, GEB owns 70% of Cálidda and recently spent $210m to buy the electricity company ElectroDunas. It also owns the natural gas company Contugas in Ica. 

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