NEW YORK, July 8 (IFR) - Latin American credits ended Wednesday’s session mostly weaker, though some names came off their intra-day lows as sentiment improved slightly towards the end of the session.
Colombia’s state-run oil company Ecopetrol was one of the worst performers in the high-grade space, with its 2025s widening by 12bp on the day to close at a cash price of 91.375-91.875.
Other investment-grade credits were ending between 4bp and 5bp wider.
The curve of Brazilian iron ore producer Vale widened by as much as 10bp at the open, but later recovered on the back of short covering to end unchanged, according to a corporate bond trader in New York.
In spite of the weakness in secondary markets, bankers said high-quality issuers willing to pay double-digit concession should have no trouble accessing the primary market over the coming days.
“When we walked in this morning we assumed this was a no-go day,” said one banker in New York. “But then suddenly sentiment started to turn and it was enough for issuers to pull the trigger on the US side.”
Strong credits like Chilean copper miner Codelco, which according to local reports is considering a bond deal of up to US$2.5bn over the coming weeks, should have no trouble finding buyers in spite of weaker copper prices, say bankers.
“There are always headwinds, but (Codelco) is a strong credit,” said a banker.
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-) 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 meet investors in 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)