ENAP's Debt Buyback Sees Huge Demand, Bolstering Green Strategy

SANTIAGO, CHILE – December 19, 2025 – Empresa Nacional del Petróleo (ENAP), Chile's state-owned oil company, announced today that its recent cash tender offer for two series of its outstanding bonds was met with overwhelming investor demand, a powerful signal of market confidence in the company's financial health and strategic direction. The offers were so heavily oversubscribed that ENAP not only increased the total amount of debt it would repurchase but will still only accept a fraction of the bonds tendered.

The move is a key part of a multi-year strategy to fortify the company's balance sheet, reduce interest expenses, and create financial flexibility to fund an ambitious multi-billion dollar investment plan heavily focused on operational efficiency and a transition toward cleaner energy sources.

Overwhelming Investor Confidence

The early results of the tender offers, which concluded on December 18, highlight the significant appetite for ENAP's debt. For its 5.250% Notes due 2029, investors tendered an aggregate principal amount of $495.3 million, vastly exceeding the company's initial target. In response, ENAP upsized the maximum tender amount from $100 million to $113.6 million, yet will still only accept approximately $110.4 million of the notes, resulting in a proration factor of just over 20%. This means investors who participated will have only about one-fifth of their tendered bonds purchased.

A similar story unfolded for the 3.450% Notes due 2031. Bondholders offered $90.4 million in principal, prompting ENAP to increase its purchase cap from $50 million to $57 million. The company will ultimately accept around $60.8 million, leading to a proration of about 61%.

This robust demand comes amid a favorable backdrop for emerging market debt. With major central banks, including the U.S. Federal Reserve, having enacted interest rate cuts in late 2025, investors are actively seeking attractive yields. The oversubscription of ENAP's offer is a strong vote of confidence, interpreted by market analysts as a testament to the company's improved credit profile and the perceived stability of state-backed entities in Chile.

"The market's reaction demonstrates clear confidence in ENAP's management and its long-term strategy," noted a fixed-income analyst familiar with Latin American markets. "For a state-owned enterprise to see this level of oversubscription is a powerful endorsement of its financial discipline and future prospects."

A Pattern of Financial Discipline

Today's announcement is not an isolated financial maneuver but the latest step in a concerted, multi-year effort by ENAP to deleverage and strengthen its financial position. The company has methodically reduced its debt over the past several years, reportedly reaching its lowest debt level in 15 years earlier in 2025. This disciplined approach has been supported by strong operational performance, with the company posting profits for four consecutive years.

Financial results from 2024 and 2025 underscore this trend. ENAP reported profits of over $408 million in 2024 and continued its strong performance into 2025, with accumulated profits reaching $506.2 million in the first nine months of the year, a 55% increase over the same period in 2024.

This sustained financial health and prudent debt management did not go unnoticed by credit rating agencies. In May 2024, S&P Global Ratings upgraded ENAP's credit rating from 'BB+' to 'BBB-', lifting the company to investment-grade status with a stable outlook. Moody's has also maintained a stable 'Baa3' rating, citing the company's strong competitive position and business diversification. These ratings are crucial as they directly impact ENAP's ability to borrow money at favorable rates.

Fueling a $3.8 Billion Green Transition

The strategic importance of this debt repurchase extends far beyond the balance sheet. By retiring more expensive debt and reducing future interest payments, ENAP is creating greater financial flexibility to execute its 2025-2029 Business Development Plan, an ambitious strategy backed by a US$3.788 billion investment.

This plan is pivotal for ENAP's future, allocating approximately 70% of its budget toward enhancing operational continuity, improving efficiency, and crucially, diversifying into cleaner energy sources. The company is actively pursuing projects in green and blue hydrogen, ammonia fuel, and sustainable aviation fuels (SAF). In 2025, ENAP already launched its own Renewable Diesel and began construction of a green hydrogen plant in Chile, signaling a tangible commitment to its decarbonization goals for 2035 and 2050.

The successful tender offer effectively lowers the company's future cost of capital, making it easier and cheaper to finance these large-scale, transformative projects. By proactively managing its liabilities, ENAP is ensuring it has the financial runway to navigate the global energy transition while maintaining its critical role in Chile's energy security.

The Tender Offer Details

For bondholders who participated, the early settlement date for the accepted notes is expected on or around December 22, 2025. On that date, holders of the accepted 2029 Notes will receive a total consideration of $1,022.50 for each $1,000 in principal amount. Holders of the accepted 2031 Notes will receive $928.50 per $1,000 principal. These payments include a $50 early tender premium, which was designed to incentivize early participation.

Due to the significant oversubscription before the early deadline, ENAP has confirmed it will not accept any notes tendered after December 18. All bonds that were tendered but not accepted due to proration will be promptly returned to the holders at the company's expense. This decisive action underscores the success of the offer and solidifies the company's financial gains from the transaction, allowing it to move forward with its strategic objectives on a stronger financial footing.