Isagen will issue about $102 million USD worth of bonds on September 13 through the Colombian stock market. The formerly state-controlled electricity company, which was sold to Canada-based Brookfield Renewable Energy Partners in January, said it is issuing 300 billion pesos of bonds to generate capital in order to more easily meet its financial liabilities.
The plan has been approved by the national regulator, the Superintendencia Financiera de Colombia, and the ordinary bonds have been rated AAA by Fitch Ratings. The bonds will be issued by the Medellín-based utility through a Dutch auction for a term of between one to 15 years.
Isagen made its last major bond issuance in November 2010 to finance its Sogamoso Hydroelectric Project in the department of Boyacá. In that move, it issued 1.3 billion pesos worth of public debt bonds that the company believes helped it raise confidence among investors.
Colombian President Juan Manuel Santos had sought to sell Isagen for more than a year before it was purchased by Brookfield for around $2 billion USD.
Faced with falling revenue due to low oil prices, the administration wanted to move the high-value asset in order to finance its ambitious highway infrastructure renovation program. This so-called 4G plan is currently improving Colombia’s transportation system by building or revamping roads, bridges, and tunnels throughout the nation.