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Copper|Mining|Operations
Copper|Mining|Operations
copper|mining|operations

Codelco taps debt market to fund record copper-mine investments

9th January 2025

By: Bloomberg

  

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Codelco is tapping the bond market to the tune of about $1.5-billion to help fund record investments needed to retain its status as the world’s biggest copper producer.

Chile’s state mining firm is offering two benchmark-size tranches of about $750-million each — one maturing in 10 years and the other in 30 years, according to people familiar with the matter. It sold a similar amount a year ago.

Codelco has embarked on an unprecedented spending program to overhaul its aging operations in Chile after decades of underinvestment. Capital expenditure was budgeted at between $4-billion and $5-billion last year and almost $6-billion this year as the company looks to recover from the lowest production levels in a quarter century.

Bookrunners — Bank of America, Citigroup, JPMorgan Chase & Co. and Banco Santander — have tightened the price talk on the 10-year tranche to about 170 basis points from about 195 basis points, and on the 30-year tranche to about 190 from 215 basis points.

The bonds are expected to price Wednesday and settle January 13.

Edited by Bloomberg

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