(UPDATES with book size, launch details)
By Paul Kilby
NEW YORK, Jan 12 (IFR) - Honduras amassed more than US$5bn
of orders for its US$700m 2027 bond on Thursday, allowing it to
tighten pricing a good 25bp on its first cross-border issue in
three years, sources told IFR.
Demand for Latin American sovereigns remains robust as
accounts look to put money to work following an issuance drought
late last year.
Leads squeezed pricing before launching the deal at a yield
of 6.25%, the tight end of guidance of 6.375% (+1/8) and well
inside initial price thoughts of mid-to-high 6%.
Both improving fundamentals and the borrower's decision to
stick to the middle of its US$500m-US$850m target size helped
generate interest in the deal.
"If you look at countries that have outperformed IMF
programs, there are two countries that come to mind: Jamaica and
Honduras," said Sean Newman, a senior portfolio manager at
Honduras was last in the international markets in late 2013,
when it issued a 2020 to yield 8.75%.
That bond had been trading at a bid yield of around 5.50%,
while the borrower's 7.5% 2024 was being quoted this week at
around 6.06%, according to Thomson Reuters data.
Bank of America Merrill Lynch and Citigroup are acting as
leads on the new offering, which is expected to price later on
The country is rated B2/B+ by Moody's and S&P, both with
(Reporting by Paul Kilby; Editing by Natalie Harrison and Marc