(Updates with a second, dollar-denominated bond issue)

SANTIAGO -(Dow Jones)- Chilean integrated steel maker Cap SA (Santiago:CAP) (CAP.SN) issued local bonds worth $86.1 million Monday, according to a filing with the Santiago Stock Exchange.

The company placed five-year, BCAPS-E series bonds, denominated in the UF inflation-indexed currency unit, at a yield of 3.75%.

About an hour after the first issue, Cap issued 10-year, BCAPS-F bullet bonds worth $171.5 million. The dollar-denominated bonds were issued at 2.25% over the London interbank offered rate.

Proceeds from the bonds will be used to finance the company's investment plans. Cap aims to invest $3.5 billion in the 2008-2015 period to double its output of steel to 3 million tons a year and more than triple its production of iron ore.

-By Patricia San Juan, Dow Jones Newswires; 56-2-460-8546; patty.sanjuan@ dowjones.com

(Carolina Pica contributed to this report)

    (END) Dow Jones Newswires   05-19-08 1348   Copyright (c) 2008 Dow Jones & Company, Inc.