Soaring demand for copper will help drive mergers, BHP CEO says
Demand for copper, a key element in the energy transition, is set to rise by 70% to 100% by 2050, Mike Henry said
Chile’s Codelco, the world’s largest copper producer, placed $2 billion in unsecured dollar-denominated debt maturing in 12 and 29 years on Tuesday, the miner said in a statement confirming an earlier report from capital markets publication IFR.
The 2036 bond is pegged for some $1.5 billion, featuring a yield of 6.447%, which works out to 230 basis points above comparable US Treasury debt, Codelco and IFR said.
The 2053 bond, meanwhile, is worth $500 million and features a yield of 6.746%, or 235 basis points above Treasuries.
IFR, which listed Bank of America, Citi, JP Morgan and Santander as bookrunners, said the pricing is expected later Tuesday and the issue should be settled on Friday.
Codelco’s production has slumped to its lowest level in 25 years due to operational problems and delays in its expansion projects, though top executives have given assurances that production will begin to recover this year.
The state-owned company has also been tasked with leading a push to boost state control over Chile’s lithium industry. It announced a takeover deal with an Australian firm earlier Tuesday, even as it contends with rising debt loads.
(By Fabian Cambero and Sarah Morland; Editing by Kevin Liffey, Chizu Nomiyama and Deepa Babington)
Comments