The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Century Bonds: From one extreme to the other

Two years ago in the wake of the Mexican peso crisis, Latin American issuers were unable to raise even short-term debt. Now a Chilean credit has launched the continent's first 100-year bond obtaining the tightest pricing for an emerging market issuer in this niche area. Strong demand for the bonds of electricity generator Endesa pushed up the size of last month's issue from $170 million to $200 million.

But while the Endesa century does provide proof of South America's improving fundamentals, analysts say this and other emerging market centuries were driven more by issuer concerns about image and US investor thirst for blue-chip credits offering above average yields. Only a handful of emerging market issuers have the capability to do 100-year bonds and Endesa was only the seventh company outside the US to tap the sector. Other members of this exclusive club include India's Reliance Industries, Tenega Malaysia and the People's Republic of China. All carry investment grade ratings.

"There is a clear difference between issuers of this quality and other emerging economies," says Brian O'Neill, Latin America managing director for Chase Manhattan, which led the Endesa deal. "Chile is a high-grade investment country and Endesa is a high-grade company that has issued yankee bonds before and has a large investor following with 47,000 shareholders, 9% of whom are non-Chileans."

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree