At a ceremony held in New York, the specialized financial media outlet highlighted the Chilean state-owned company’s USD 600 million transaction carried out in July of last year.
The National Petroleum Company (Enap) was recognized yesterday by the renowned financial magazine LatinFinance in its Deals of the Year Awards, 2024 edition, winning first place in the category Quasi-Sovereign Liability Management of the Year. This award, organized by LatinFinance for over 35 years, acknowledges the most outstanding transactions and institutions in Latin America and the Caribbean’s capital markets.
The state-owned company earned this distinction for its USD 600 million bond placement in the international market in July 2024, which was praised for its innovation, execution, and impact. The transaction was part of the company’s strategy to strengthen its financial structure, with the specific objective of refinancing maturing debt and reducing Enap’s debt level in line with its financial sustainability plan.
“This recognition reflects the strength and financial management our team has demonstrated in recent years, allowing us, among other achievements, to reduce our debt by approximately USD 900 million in two years and become the only state-owned Oil & Gas company in Latin America with an Investment Grade rating. Today, we can proudly say that Enap is a profitable, efficient, and financially sustainable state-owned company,” said Julio Friedmann, CEO of the company, who attended the awards ceremony in New York alongside the Administration and Finance Manager, José Pablo Gómez, and the Director of Corporate Finance and Investor Relations, José Miguel Higueras.
Gómez, in turn, highlighted that “this transaction successfully capitalized on investor interest, our credit rating, and the support of banks and legal advisors, allowing us to accurately assess market conditions. This enabled us to issue the new bond and repurchase those maturing in 2026 and 2031, providing us with greater financial flexibility.”
High Interest Issuance
On July 24, 2024, Enap issued a USD 600 million bond in the international market with a 10-year maturity, semi-annual interest payments, and capital amortization at the end of the term. The bond had a coupon rate of 5.95% and a yield rate of 6.15%. The funds raised from the issuance, combined with USD 200 million in available cash, were used to partially prepay the international bond maturing in 2026, while the remaining portion was allocated to repaying part of the international bond maturing in 2031, resulting in a total debt reduction of USD 232 million.
The bond issuance generated significant market interest, attracting an order book exceeding USD 4.8 billion with participation from nearly 250 investors, representing an oversubscription of eight times the issuance size.