January 5, 2017 / 7:39 PM / 7 months ago

LATAM CLOSE-No deals price in LatAm primary market

7 Min Read

* Neoenergia eyes international bond sale
    * Aerodom preps debt sale, tender
    * Metro de Santiago to market possible 30-year
    * Brazil's Raizen to meet investors
    * BBVA Chile taps local market

    By Mike Gambale
    NEW YORK, Jan 5 (IFR) - No deals priced in the LatAm primary market on
Thursday.
    
    Below is a snapshot of sovereign credit spreads across the region.
     SOVEREIGN       1/4   1/3   12/30  1D   10D   YTD    2015/16 HIGH
 ARGENTINA           452   448    426    4   -17    26         -
 BARBADOS            671   670    643    1    53    28   659 (2/11/16)
 BRAZIL              285   299    302   -14  -11   -17   542 (2/11/16)
 CHILE                83    82    84     1    10    -1   143 (2/11/16)
 COLOMBIA            195   200    199   -5    2     -4   412 (2/11/16)
 COSTA RICA          426   434    439   -8    -2   -13   587 (2/11/16)
 DOMINICAN REP       387   393    395   -6    -4    -8   542 (2/11/16)
 ECUADOR             642   659    654   -17  -35   -12   1765 (2/11/16)
 EL SALVADOR         522   523    521   -1    7     1    840 (2/11/16)
 GUATEMALA           257   262    262   -5    -2    -5   385 (2/11/16)
 JAMAICA             356   362    363   -6    9     -7   519 (2/11/15)
 MEXICO              207   201    201    6    17    6    278 (2/11/16)
 PANAMA              175   179    181   -4    7     -6   272 (2/11/16)
 PERU                161   167    167   -6    6     -6   291 (2/10/16)
 TRINIDAD & TOBAGO   213   218    220   -5    4     -7   173 (1/15/15)
 URUGUAY             226   229    232   -3    5     -6   344 (2/11/16)
 VENEZUELA           2243  2272  2294   -29   -8   -51   3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS
    One-day: 13 of 17 sovereigns tighter
    Ten-day: 10 of 17 sovereigns wider
    YTD: Chile tighter by 1bp
    YTD: Guatemala tighter by 5bp
    YTD: Peru tighter by 6bp
    
    PIPELINE 
    Metro de Santiago will start roadshows to market a possible 30-year issue
through Bank of America Merrill Lynch and JP Morgan.
    The borrower will be in Los Angeles on January 9, London on January 11, in
New York on January 12 and 13 and Boston on January 17. Investors calls will
also be held on January 16. Expected ratings are A+/A by S&P and Fitch. The new
30 year may carry an optional redemption before maturity.
    
     Aeropuertos Dominicanos Siglo XXI (Aerodom), an airport operator in the
Dominican Republic, will start roadshows next week to market a new US dollar
bond that will fund a tender and consent solicitation for outstanding debt.
    The borrower will be in London and Los Angeles on January 9, Boston on
January 10 and New York on January 11. JP Morgan and Scotiabank have been
mandated as joint bookrunners to arrange meetings. Expected ratings are BB-/Ba3
by S&P and Moody's.
    Proceeds will go to fund a tender and consent solicitation for Aerodom's
9.25% senior secured notes due 2019 and for general corporate purposes.
    
    Brazilian power company Neoenergia is considering a possible US dollar bond
debut this year after sending out requests for proposals in late 2016, two
market sources told IFR.
    Neoenergia Group's principal shareholders are Banco do Brasil's pension fund
Previ, with a 49.01% stake, and Spain's Iberdrola with a 39% stake, according to
the company's website.  
    
    Brazilian bioenergy company Raizen will start fixed-income investor meeting
next week to market a possible US dollar bond. The borrower will visit accounts
in London, New York and Boston between January 9 and 11. 
    Expected ratings are BBB-/BBB by S&P and Fitch. Bank of America Merrill
Lynch, Bradesco, Citigroup, JP Morgan and Santander have been mandate to
coordinate roadshows.
    
    The Republic of Honduras, rated B2/B+, has hired Bank of America Merrill
Lynch and Citigroup for a US dollar bond roadshow, a bank on the deal told IFR.
    The borrower will be in London on Thursday and Friday. Next week it will
visit investors in Los Angeles, Boston and New York, where it will end marketing
for the deal on January 11. 
        
    Argentina power company Genneia will start roadshows this week to market a
US dollar bond with an intermediate tenor through Bank of America Merrill Lynch,
Itau and JP Morgan.
    The company will be in London on Friday and will head the following week to
New York, Boston and Los Angeles, where it will end investor meetings on January
11. Ratings are expected to be B3/B+ by Moody's and Fitch
    
    Brazilian pulp and paper company Fibria Celulose will kick off roadshows
this week to market an SEC registered senior unsecured 2027 US dollar
denominated Green bond.
    The borrower will be in Los Angeles on Friday, and next week will head to
New York and London on Monday and New York and Boston on Tuesday. BNP Paribas,
Bank of America Merrill Lynch, Citigroup, HSBC and JP Morgan have been mandated
to arrange the investor meetings. Ratings are BBB-/BBB- (negative/stable) by S&P
and Fitch.
    
    Argentina's Finance Minister Luis Caputo said last month that the
administration was considering tapping the debt markets in January, according to
Reuters. The country needs US$22bn of debt financing this year, plus an
additional US$21bn for refinancing needs, he said.
    
    Paraguay is considering raising up to US$550m in the bond market in March,
Reuters quoted Finance Minister Santiago Pena saying. 
    
    Inversiones Atlantida, the largest financial group in Honduras, has finished
roadshows to market a potential debut US dollar bond through Oppenheimer.
Expected ratings are B/B by S&P and Fitch.    
    
    Argentina's Province of Entre Rios has finished roadshows ahead of a
possible US dollar bond. Citigroup, HSBC and Santander organized investor
meetings. Expected ratings are B-/B by S&P and Fitch.
    
    Colombian glass company Tecnoglass has wrapped up investor meetings ahead of
an up to US$225m debut dollar bond with a tenor of between five and seven years.
    Expected ratings are Ba3/BB- by Moody's and Fitch. Bank of America Merrill
Lynch and Morgan Stanley have been mandated as joint bookrunners.
    

 (Reporting by Mike Gambale; Editing by Paul Kilby and Marc Carnegie)

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