Santiago, July 3, 2014 GG No. 53/ 14 Mr. Carlos Pavez Tolosa Superintendent of Securities and Insurance Av. Libertador Bernardo O'Higgins N 1.449 Ref.: Essential Fact Colbún S.A., Inscription in the Securities Registry No. 0295 Dear Sir: By virtue of what is set forth in Article 9 and paragraph two of Article 10 of the Securities Market Act No. 18,045 and the instructions contained in the General Norm No.30 of the Superintendence chaired by you, and being duly empowered for this, I hereby communicate as essential fact that on July 2, 2014, Colbún S.A. conducted a bond issuance under "144 A" a n d "Regulation S" standards, both of the "U.S. Securities Act of 1933", of the United States of America. The issuance amounted to US$ 500 million and the bonds are 10-year term, with a coupon interest rate of 4.50%. Those values will neither be recorded with the Securities Registry held by the Superintendence according to what is set forth by the Securities Market Act 18,045 of the Republic of Chile, nor with the "Securities and Exchange Commission" ("SEC") of the United States of America. The interests will be paid every six months and the capital will fall due and be paid in a single installment on July 10, 2024. The resources obtained from the issuance of the bond will be used to pay part of the existing Company s l i a b i l i t i e s a n d t o f i n a n c e f u t u r e i n v e s t m e n t p r o j e c t s. Please find enclosed the Form established in Newsletter 1,072 of the aforementioned Superintendence.
Kind regards, Ignacio Cruz Zabala General Manager Colbún S.A. cc.: Stock Exchange of Santiago, Securities Exchange Brokers Exchange, Securities Exchange Electronic Stock Exchange of Chile, Securities Exchange
SUPERINTENDENCE OF SECURITIES AND INSURANCE ESSENTIAL FACT PLACEMENT OF BONDS IN INTERNATIONAL MARKETS 1.0 IDENTIFICATION OF THE ISSUER 1.1 1.2 1.3 1.4 1.5 1.6 Company Name: Fancy Name: Colbún S.A. Corporate Tax Number: 96.505.760-9 Inscription in the Sec. Registry: Address: Telephone: 295 Avenida Apoquindo 4775 Piso 11, Las Condes, Santiago. 2460-4000 1.7 Activities and businesses: Generation and sale of electric energy 2.0 THIS NOTICE IS MADE BY VIRTUE OF WHAT IS SET FORTH IN ARTICLE 9 AND PARAGRAPH TWO OF ARTICLE 10 OF LAW 18,045, A N D C O N S T I T U T E S A N ESSENTIAL FACT IN CONNECTION WITH THE COMPANY, ITS BUSINESSES, ITS/THEIR PUBLIC BID VALUES, AS APPLICABLE. 3.0 CHARACTERISTICS OF THE ISSUANCE 3.1 Base currency: Dollars of the United States of America 3.2 Total amount issued: US$ 500,000,000 3.3 To the bearer /to the order of: To the bearer 3.4 Series: Single 3.4.1 Amount of the series: US$ 500,000,000 3.4.2 No. of bonds 2,500 3.4.3 Nominal bond value: Minimum denomination of US$ 200,000 in minimum multiples of US$ 1,000 3.4.4 Readjustment: Not applicable 3.4.5 Interest rate: 4.50% 3.4.6 Issue date: July 2, 2014 3.4.7 The following development table must be completed for each series:
SUPERINTENDENCE OF SECURITIES AND INSURANCE No. of interest installment No. of amortization installment Date Interests Amortizations Total installment Capital Balance 1 01-10-2015 11,250,000 11,250,000 500,000,000 2 07-10-2015 11,250,000 11,250,000 500,000,000 3 01-10-2016 11,250,000 11,250,000 500,000,000 4 07-10-2016 11,250,000 11,250,000 500,000,000 5 01-10-2017 11,250,000 11,250,000 500,000,000 6 07-10-2017 11,250,000 11,250,000 500,000,000 7 01-10-2018 11,250,000 11,250,000 500,000,000 8 07-10-2018 11,250,000 11,250,000 500,000,000 9 01-10-2019 11,250,000 11,250,000 500,000,000 10 07-10-2019 11,250,000 11,250,000 500,000,000 11 01-10-2020 11,250,000 11,250,000 500,000,000 12 07-10-2020 11,250,000 11,250,000 500,000,000 13 01-10-2021 11,250,000 11,250,000 500,000,000 14 07-10-2021 11,250,000 11,250,000 500,000,000 15 01-10-2022 11,250,000 11,250,000 500,000,000 16 07-10-2022 11,250,000 11,250,000 500,000,000 17 01-10-2023 11,250,000 11,250,000 500,000,000 18 07-10-2023 11,250,000 11,250,000 500,000,000 19 01-10-2024 11,250,000 11,250,000 500,000,000 20 1 07-10-2024 11,250,000 500,000,000 511,250,000 0 3.5 Guarantees/ collateral YES NO 3.5.1 Types and amounts of the guarantees: 3.6 Extraordinary Amortization YES NO 3.6.1 Procedures and dates: Any time 4.0 OFFER Public Private 5.0. BOND PLACEMENT COUNTRY
SUPERINTENDENCIA DE VALORES Y SEGUROS 5.1 Name: Private Offer in International Markets 5.2 Norms to be granted authorization to trade: Rule 144A and Regulation S of the U.S. Securities Act of 1933 of the United States of America (It is not necessary to be registered with the Securities and Exchange Commission of the United States of America). 6.1 INFORMATION TO BE PROVIDED 6.2 To future bond holders: Quarterly and annual financial statements 6.3 To future bond holders representatives: 7.1 ISSUE CONTRACT Quarterly and annual financial statements 7.2 General characteristics: 10-year term bond; payment of interests every six months on January 10 and July 10 every year, starting on January 10, 2015 and finishing on July 10, 2024 and with a single capital amortization upon maturity on July 10, 2024. 7.3 Rights and obligations of bond holders: Customary 8.0 OTHER IMPORTANT BACKGROUND INFORMATION Not applicable LIABILITY STATEMENT The foregoing information reflects the reality Signature: Name: Ignacio Cruz Zabala Chilean Identity Card Number: 7.431.687-5 Position: General Manager