May 1, 2001
A $710 million bond financing for Compañía de Transmisión Elétrica de Chile SA (Transelec), the Chilean transmission company, in April co-led by Salomon Smith Barney and ABN AMRO, offered investors a rare safe haven in a particularly turbulent period in Latin American markets. The financing's simultaneous syndication of international and local tranches provided strong price support for the issuer.
The financing was split between a $465 million, 10-year, 144a bond and Chilean peso 9.2 million in local inflation-linked instruments worth $245 million. Bankers say it was the largest financing ever raised for a Chilean energy utility and the first simultaneous financing
Transelec's double-barreled bond was designed to match its revenue streams. The issue went like a dream, in spite of emerging market volatility and turbulence in the power industry.