Essal places US$52.2mn in bonds

Chile's Region X waterworks company Essal successfully placed US$52.2mn in 25-year bonds on the local market Thursday (June 12), announced BBVA, which structured the operation. "There was an excellent reception among investors, principally life insurance companies, as demand more than doubled supply," according BBVA. The bond was issued in the country's inflation-indexed currency UF, and placed by BBVA Corredores de Bolsa BHIF S.A. Essal will use the proceeds for refinancing and new investments, mainly wastewater treatment. Earlier this year, the company began operations of a 1km underwater outlet pipe for regional capital Puerto Montt, as part of a US$12mn wastewater treatment system for the area. Spain's Iberdrola controls Essal whose 2003-2010 investment pledge with Chile's waterworks regulator SISS calls for investing some US$30.5mn, despite the Spanish company's plans to offload its water assets in other parts of Latin America. Essal serves some 520,000 residents.