Codelco launches a $ 1.3 billion bond to respond to the offer of repurchase



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The Chilean miner has established a yield of 175 basis points on the return of comparable US Treasury bonds and has named HSBC, JP Morgan and Scotiabank as agents of the operation.

The National Copper Corporation (Codelco), the world's largest copper producer, launched on Monday a 30-year bond issue for $ 1.3 billion to finance the repurchase of a debt previously announced by the same company, according to an IFR report.

The Chilean miner has established a 175-basis-point return on the return of US Treasury bonds and has named HSBC, JP Morgan and Scotiabank as agents of the operation, Reuters reported.

"The funds will be used to finance an (debt) and for general corporate purposes"explained IFR, a financial information service for Refinitiv.

Previously, Codelco offered to buy all notes with a yield of 3.75% by 2020; from 3.875% to 2021 and 3.0% to 2022, considering a "maximum value" for the acquisition of notes with a return of 4.5% to 2023 and 2025, according to a company document.
The total amount of the capital of outstanding securities with maturities between 2020 and 2022 is US $ 1,907 million.

The maximum amount will be determined when total capital is defined of the offer of securities validly presented and accepted for purchase.

The first offer is valid until February 1, while the maximum amount expires on February 25.

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