US LATAM WRAP-AES Panama flies solo in quiet LatAm market
By Paul Kilby
NEW YORK, June 18 (IFR) - AES Panama cut a lonely figure as it came with the only LatAm bond deal Thursday, despite expectations of a new surge in supply after the Fed's dovish statements yesterday.
The backdrop for issuance was relatively benign, as US stocks rallied and sentiment was buoyed by hopes that financial aid to Greece would be extended until year-end.
"The equity market is ripping and the FOMC statement was perceived as dovish," one syndicate official told IFR. "That is a nice backdrop for the market."
But AES Panama got the market's full attention as other borrowers were heard waiting for either better secondary levels or several more days of stability.
The risk of any spillover from Greek debt talks is also a concern.
The Panamanian utility, rated BB-/BB+, priced a US$300m seven-year at par to yield 6% after books peaked at around US$850m.
That was at the tight end of guidance of 6.125% (+/-12.5bp) and inside of initial price thoughts of low-to-mid 6s.
After AES Panama, the Jamaican sovereign and Mexican hospitality company Grupo Posadas are the only borrowers visible in the pipeline. Continuación...