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.
Venezuelan state-owned oil company PDVSA's 8.5% 2017s were three quarters of a point higher in price at around 77.75 mid-market, outperforming most of the sovereign's notes.
"Prices drifted higher as the limited profit taking that we saw was more than offset by the continuous demand from indexed accounts," said Jorge Piedrahita, CEO of brokerage Torino Capital in New York.
Among new issues, Bladex's new 2020s closed at 99.875-100.125, or roughly a quarter of a point above reoffer.
Chile could soon return to international capital markets with a new bond deal after sending requests for proposal to banks earlier this month, according to three sources with knowledge of the situation.
The sovereign, rated Aa3/AA-/A+, is expected to raise at least US$1bn-equivalent through the deal, which could materialize as soon as this week, one of the sources said.
Votorantim Cimentos (Baa3/BBB/BBB) has mandated Citigroup, Deutsche Bank, HSBC, Banco Votorantim, BB Securities, Bank of America Merrill Lynch, MUFG and Santander GBM to arrange a series of investor meetings ahead of a potential euro-denominated bond issue.
The meetings kicked off in Frankfurt and Munich on Monday and will continue in London on Tuesday, and Amsterdam and Paris on Wednesday.
JB y Compania SA de CV (Jose Cuervo) kicked off meetings last week through Bank of America Merrill Lynch and Citigroup as it seeks to market a possible senior unsecured US dollar bond.
The borrower was in Chicago on Monday and will head to New York on Tuesday. The spirits company, rated BBB/BBB by S&P and Fitch, is the world's largest tequila producer.
Pacific Rubiales, the largest private oil producer in Colombia, has kicked off investor meetings through Bank of America Merrill Lynch, Citigroup and HSBC. After visiting Los Angeles on Monday, the company will be in Miami on Wednesday. (Reporting by Davide Scigliuzzo; editing by Shankar Ramakrishnan)