S&P rates Entel sustainable notes BBB-

S&P said it assigned its BBB- issue-level rating to Empresa Nacional de Telecomunicaciones SA's (Entel; BBB-/stable/--) proposed senior unsecured sustainable notes for up to $800 million.

Entel intends to allocate an amount equal to the net proceeds to finance and refinance eligible social and green projects, as defined by Green and Social Bond Principles. Until full allocation to such projects, Entel plans to use the proceeds to conduct a cash tender offer to purchase up to $800 million in aggregate principal of the 4 7/8% senior notes due 2024 and 4¾% senior notes due 2026.

“The rating on the notes is the same as the issuer credit rating on Entel because we don't believe there are material financial obligations that would rank ahead of the company's unsecured debt by way of structural or contractual subordination, given that priority debt represents less than 1% of total debt as of June 2021,” S&P said in a news release.

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