Isagen Delays Bond Sale After Colombian Yields Soar, CEO Says

Isagen SA (ISAGEN), Colombia’s second-biggest publicly traded power company by sales, said it will delay a planned bond sale to August or September after credit costs in the country surged to 16-month highs.

The surge in bond yields in the past six weeks is behind the postponement after the board approved a 1.6 trillion-peso ($840 million) debt sale on May 30 to tap low funding costs, Chief Executive Officer Luis Fernando Rico said today.

“We went to the board and told them that the conditions were excellent and asked for authorization to acquire new funding, and right at that moment the market changed,” he said in an interview in Bogota.

Yields on Colombia’s dollar-denominated bonds due 2024 rose as much as 120 basis points, or 1.2 percentage point, since the beginning of May, as speculation the US Federal Reserve may curb its asset-purchase program lured money away from emerging-market economies.

“We are going to see how the conditions develop,” said Rico. “We are waiting for it to stabilize because this is a period with a lot of turbulence.”

Isagen is developing the Sogamoso hydroelectric plant that will increase the company’s installed capacity by 42 percent and earnings before items by as much as 80 percent, he said. The plant probably will begin in July or August next year, ahead of its previous scheduled December start date, said Rico.

To contact the reporter on this story: Andrew Willis in Bogota at

To contact the editor responsible for this story: James Attwood at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.