Electroandes to offer bonds Wed.

Peruvian generator Electroandes will offer up to US$20mn 10-year bonds on the local market on Wednesday and issue them on Thursday, the company said in a statement to the Lima stock exchange. The bonds are the third issue of Electroandes's first corporate bonds program. Previous issues were US$50mn 10-year bonds issued in US dollars in June, and US$30mn in local currency 12-year bonds issued in September. Banks BCP and Continental structured the third issue, while Continental SAB and Credibolsa SAB are the two placing agents. The company recently told the Lima stock exchange that it has reduced its capitalization by 35.5% to US$147mn from US$227mn. When PSEG bought Electroandes, the full sale price was US$227mn, but as it secured US$80mn financing, the equity requirement was US$147mn. Rather than a capital reduction, the US$80mn difference is therefore an adjustment to reflect the nature of the acquisition.