7 de julio de 2015 / 21:09 / en 2 años

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

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.

Elsewhere in secondary markets, Latin American credits generally ended the day 5bp to 7bp wider in spreads, after widening by nearly twice as much earlier in the day.

Bonds issued by metals and mining companies underperformed as commodity prices remained under pressure on concerns over a sharp sell-off in Chinese equities.

Brazil’s iron ore producer Vale, for example, watched its curve widen by around 15bp on the day and up to 30bp since the beginning of the week, according to the trader.

PIPELINE

Chilean power utility AES Gener has announced investor meetings ahead of a potential US dollar deal. According to rating agency Fitch, the company is expected to raise up to US$450m through a 10-year bullet.

Proceeds will be used to refinance a US$308m 2022 note issued for the Nueva Venanta project and to tender for local US dollar-denominated 2019s totaling US$102.2m, according to Fitch.

America Movil (A2/A-/A) and Telesites (expected NR/BBB-/BBB-) have mandated Citigroup, Indursa, BBVA and Santander to arrange fixed income investor meetings between June 29 and July 9.

The meetings will discuss the new Operadora de Sites Mexicanos business and gauge interest in new 144A/Reg S deals in Mexican pesos and/or USD.

Banco Santander Chile has mandated Deutsche Bank and Santander to arrange global fixed-income investor meetings to discuss opportunities in the domestic Chilean markets.

The bank, rated Aa3/A/A+, will be in Boston on July 7, New York and nearby on July 8 and 9, and finish up in Los Angeles on July 10.

Jamaica, rated Caa2/B/B-, has wrapped up roadshows via Citigroup. The meetings were described as a non-deal roadshow, but markets have been expecting the sovereign to raise funding to retire a PetroCaribe loan owed to Venezuela. (Reporting by Davide Scigliuzzo; editing by Shankar Ramakrishnan)

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