Busy Latam primary market expected this week

lunes 4 de mayo de 2015 16:34 GYT

By Davide Scigliuzzo

NEW YORK, May 4 (IFR) - Latam borrowers including Chile, Brazil's cement producer Votorantim Cimentos and Mexican tequila-maker Jose Cuervo are expected to tap the primary bond markets as soon as this week, taking advantage of relatively stable conditions ahead of the US jobs report on Friday.

Honduras could also return to the international debt markets over the coming weeks after receiving pitches from banks. It is yet to hire lead managers for a potential transaction, two sources familiar with the situation told IFR on Monday.

Local reports quoted the country's finance minister Wilfredo Cerrato as saying on Monday that the sovereign is looking to raise around US$857m through the sale.

In secondary markets, bonds of Brazilian power company Eletrobras bounced off their lows after dropping several points last week. The company delayed the filing of its annual report with the SEC as it investigates the alleged involvement of one of its subsidiaries in a country-wide corruption scandal.

The company's 2019s and 2021s were ending the day at 98.5-99.0 and 93.5-94.0 respectively on Monday, both up a point on the day but still a couple of points below their levels before the delay was announced on Thursday.

"People are realizing that going short is not the best idea," said a corporate bond trader in New York.

Elsewhere in the country, miner Vale also appeared to be in demand, with its curve ending the day 4bp tighter in spreads.

The company's 2022s were last quoted at spreads of 259bp-257bp, while its 2042s were spotted at 250bp-245bp.   Continuación...