Isagen plans US$139mn bond issue 1Q04

Colombian state-owned generator Isagen is planning a 400bn peso (US$139mn) bond issue for the first quarter 2004, newspaper La Republica quoted Isagen's CEO Luis Fernando Rico Pinzon as saying. The funds raised from the bond issue will be used to extend part of Isagen's US$340mn debt due in 2006 for 7-10 years, Rico said. "We believe the bond issue would have a AAA qualification, so we can guarantee it with the company's cash flow," Rico said, adding that the issue would not require the government to guarantee it. The bond issue is part of Isagen's plan to replace all of its US$500mn short-term debt with long-term debt. Isagen has 2,132MW of installed capacity representing 16.7% of the country's total installed capacity. The company generated 5,604GWh in 2002, accounting for 12.5% of total generation in the national grid. Isagen owns four hydro plants; San Carlos, Calderas, Jaguas, Miel I, and one thermo plant, Termocentro. A guerrilla attack put the 26MW San Carlos plant out of operation in September 1998, but Isagen plans to restart it by 2006 through a US$5mn-6mn investment, Rico said.