Chile’s state-owned copper producer Codelco announced on Tuesday a two-part US dollar bond sale expected to raise between $1.2 billion and $1.5 billion, which should account for a significant portion of its 2026 refinancing needs.
The sale comprises two bonds: a new note maturing January 30, 2037, and an expansion of Codelco’s existing 6.30% bonds due September 8, 2053, IFR reported.
Both bonds were initially offered at a premium of 165 basis points above US Treasury yields.
S&P Global Ratings assigned a BBB+ rating to both offerings, estimating the sale to bring in up to $1.5 billion.
Proceeds will be used for general corporate purposes, including paying down existing debt, IFR said.
The company faces free cash flow deficits and reduced copper output.
(By Kylie Madry; Editing by Sarah Morland)
