The company distributor and marketer of gas Gases de Occidente could be issuing bonds to replace their debt and to finance new expansion plans.
The idea of the manager of the company is to issue 200.000 million COP$ in ordinary bonds to replace an existing debt of aproximately 134.500 million COP$ and to finance their expansion plans in order of around 62.000 million COP$.
The strategic plan for the expansion of the company consists into bring to 16 new municipalities the gas service and to improve their market share in the regions of Valle and Cauca, in which the company already provides gas service to 797 thousand people, and also is looking to increase that number. This strategy is oriented to provide service in the regulated market because this gives the company stability and a higher level of prediction of their incomes, which at the same time allows them to cover the payments of their debt because of the very interest cash flow generated by the company.
The company in 2011 registered a 5.90% increase in their operational incomes and the idea with this expansion plan is to overcome this line of growth and to achieve great results for their shareholders and bondholders, so here is another great investment opportunity for those who are looking for an investment with a possible good return but on the medium or long term. What do you think about this one?