Successful placement of EEB Notes abroad
Bogotá, Colombia, 04 November 2011
The transaction was performed for a total of US$610 million, at a rate of 6.125% for 10 years.
By reducing the interest rate of its debt, from 8.75% to 6.125%, the company will save more than US$16 million per year, in the next ten years.
With this operation, the company ratifies is strength and the acknowledgement in the market, supplementing the success achieved in the process of issuance of shares at the end of the previous week.
Bogotá D.C., 3 November 2011. Empresa de Energía de Bogotá –EEB, performed a successful placements of notes in the international capital market, reaching a sum of US$610 million, after having received 4.7 times the value of the issuance of 228 order from five continents. The purpose of this transaction is to refinance the Notes issued in 2007 that included an anticipated purchase option. The banks that supported the structuring of this operation were Deutsche Bank and Santander.
The outstanding result of this operation, allows EEB to obtain savings that will be destined to strengthening its financial plan, and thus move forward in achieving goals established in its strategic plan. By reducing the interest rate of the debt from 8.75% to 6.125%, the company will save more than US$16 million per year, for the next 10 years. This will result in benefits to all shareholders by improving the Company's profits due to reduced financial expenses.
The positive reaction of investors world wide demonstrated trust in the strength and growth shown by Grupo Energía de Bogotá and its headquarters EEB, and it adds to the positive rating granted recently by international risk rating agencies. This week, Moody's awarded EEB an investment grade in foreign currency, ratifying the financial soundness of the company derived from is shareholding structure and the operation of its companies in Colombia, Peru and Guatemala.
EEB is the administrator and headquarters to Grupo Energía de Bogotá, one of the leading corporate groups in the energy sector in Colombia, also becoming one of the largest in the region.
About Grupo Energía de Bogotá
Grupo Energía de Bogotá is ta leading corporation in the Colombian energy sector. Through EEB it transports electricity to a market enjoying one of the largest demand in the country and greatest in size, in addition it has control of the largest natural gas carrier in the country, TGI S.A. In Perú, it company CONTUGAS has a 30 year concession for the transportation and distribution of natural gas in the Ica Department, while CALIDDA is in charge of distributing natural gas in Lima and Callao. In that same country, ISA, participates in REP S.A. and TRANSMANTARO S.A., which operate 63% of the electricity transmission system in the country. In 2010, it incorporated TRECSA - Transportadora de Centroamérica S.A.- that will build the most important energy infrastructure project in Guatemala and will render electricity transmission services as of 2013. In addition, it holds a portfolio of significant investments in large companies in the energy sector, amongst which the following stand out CODENSA S.A., EMGESA S.A., GAS NATURAL S.A., Empresa de Energía de Cundinamarca - EEC and Electrificadora del Meta, EMSA and in a lesser scale ISA and ISAGEN.