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Codelco issues additional US$2B in bonds to fund mine overhaul plans

Codelco issued 10-year and 30-year dollar-denominated bonds, with yields of 3.02% and 3.71%, respectively, totaling US$2 billion to help fund its US$40 billion plan to overhaul aging mines through 2026, Reuters reported, citing IFR, Refinitiv's capital markets news service.

Further, the Chilean state copper miner also offered to buy back US$639 million in bonds due 2020, 2021, 2022, and 2023, in order to cut its short-term debt.

The latest bond issue was contrary to an April statement by Chairman Juan Benavides, in which he said that he does not expect the company to issue any additional bonds within the year.

In August, Codelco secured US$480 million in debt funding and raised a further US$193.5 million after selling its 37% stake in the GNL Mejillones natural gas plant.

According to the newswire's report, Chile's economy took a blow from plummeting copper prices, with the production of the base metal contributing as much as 15% of its gross domestic product.

Further, Codelco's first-half pretax profit plummeted 74% yearly to US$318 million, as operations at its mines struggled amid labor issues at Chuquicamata, as well as inclement weather.