LATAM WRAP-Cofide proves market resilience with US$800m bond

martes 7 de julio de 2015 17:08 GYT

By Davide Scigliuzzo

NEW YORK, July 7 (IFR) - Peruvian development bank Corporacion Financiera de Desarrollo SA (COFIDE) broke a nearly two-week lull in issuance for Latin American borrowers on Tuesday with an US$800m two-part deal that received US$2bn in orders.

The issuer demonstrated that appetite for solid credits was still strong despite nervousness about the Greece debt crisis.

Against a challenging backdrop, Cofide started off with a new issue concession of around 25bp on its dual-tranche issue, in line with the premiums offered by borrowers such as AIG and CBS Corporation in the US high-grade market today.

"This is what the market is expecting right now," said a syndicate official not involved in the transaction.

Cofide's US$200m tap of its 3.25% 2019s ended up pricing flat to the initial talk of 185bp over Treasuries.

The issuer however managed to ratchet in spreads by 15bp on its US$600m 10-year note, which priced at a final spread of 265bp over Treasuries for a yield of 4.874%.

"It didn't leave too much money on the table and a lot of crossover accounts got involved," said a Latin America corporate bond trader in New York referring to the 10-year note.

That tranche was bid up between a quarter and three quarters of a point in the gray market on Tuesday afternoon, according to the trader.   Continuación...