January 6, 2017 / 6:43 PM / 7 months ago

LATAM CLOSE-No LatAm deals in first week of 2017

7 Min Read

* Argentina to join flagship EM bond index
    * Pampa Energia to market US dollar bond
    * BAML stays overweight Argentina despite expected bond supply

    By Mike Gambale
    NEW YORK, Jan 6 (IFR) - No deals priced in the LatAm primary market on
Friday.
    
    Below is a snapshot of sovereign credit spreads across the region.
     SOVEREIGN      1/5   1/4   1/3    1D   10D   YTD     2015/16 HIGH
 ARGENTINA          447   452   448    -5   -14    21          -
 BARBADOS           679   671   670    8     58    36    659 (2/11/16)
 BRAZIL             278   285   299    -7   -17   -24    542 (2/11/16)
 CHILE               86    83    82    3     12    2     143 (2/11/16)
 COLOMBIA           192   195   200    -3    -1    -7    412 (2/11/16)
 COSTA RICA         421   426   434    -5    -9   -18    587 (2/11/16)
 DOMINICAN REP      374   387   393   -13   -18   -21    542 (2/11/16)
 ECUADOR            644   642   659    2    -30   -10    1765 (2/11/16)
 EL SALVADOR        527   522   523    5     12    6     840 (2/11/16)
 GUATEMALA          263   257   262    6     6     1     385 (2/11/16)
 JAMAICA            361   356   362    5     11    -2    519 (2/11/15)
 MEXICO             209   207   201    2     19    8     278 (2/11/16)
 PANAMA             176   175   179    1     6     -5    272 (2/11/16)
 PERU               162   161   167    1     5     -5    291 (2/10/16)
 TRINIDAD & TOBAGO  217   213   218    4     7     -3    173 (1/15/15)
 URUGUAY            229   226   229    3     7     -3    344 (2/11/16)
 VENEZUELA          2231  2243  2272  -12   -34   -63    3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS
    One-day: 11 of 17 sovereigns wider
    Ten-day: 10 of 17 sovereigns wider
    YTD: Brazil tightens 24bp
    YTD: Dominican Republic tightens 21bp
    YTD: Barbados widens 36bp    
    
    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.
    
    Argentine energy company Pampa Energia will kick off roadshows next week as
it looks to market a new US dollar bond.
    The borrower will be in Boston on January 10, in New York on January 11 and
12, in Los Angeles on January 13 and in London on January 16. The company is
looking to raise up to US$500m size and considering tenors of five, seven or 10
years.
    Expected ratings are B3/B-/B+. Citigroup and Deutsche Bank are acting as
joint bookrunners, with Credit Agricole and Santander acting as co-managers.
    
    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.
    Next week, the borrower 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.
    Next week, the company will be in 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 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. Local press have been reporting that the sovereign is looking at an up
to US$10bn deal. The country needs US$22bn of debt financing this year, plus an
additional US$21bn for refinancing needs, Caputo 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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