ISA shareholders approve US$300mn bond issue

Shareholders of Colombian state transmission company ISA authorized on Monday the issue of up to US$300mn non-convertible bonds, the company said in a statement. The bonds could be issued in Colombia or abroad depending on market conditions, the statement said. ISA's board will decide when to issue the bonds according to the company's needs. The issue will allow the company to expand its financing portfolio, position it in international capital markets and obtain better financing terms. ISA issued 250bn pesos (US$93mn) of bonds in February in two tranches that were oversubscribed by an average of 74.6%. The bonds were placed under the Dutch auction scheme on the Colombian stock market. Corfivalle, Helm Securities and BBVA Valores Ganadero acted as the placing agents. Credit rating agency Duff and Phelps Colombia (DCR) rates the bonds at AAA. The funds obtained from the bond issue will be used to pay debt, finance cash flow and make new investments.