UPDATE 3-Peru raises US$1.25bn with 12-year bond

martes 18 de agosto de 2015 15:20 GYT

(Updates throughout)

By Paul Kilby

NEW YORK, Aug 18 (IFR) - Peru was poised to raise US$1.25bn on Tuesday through a rare 12-year dollar bond that generated more than US$4.5bn in demand for Latin America's first sovereign issue since July.

Global coordinators Citigroup and JP Morgan were able to push the final spread to 195bp over Treasuries, some 30bp in from initial thoughts - and far too narrow for some accounts.

Falling commodity prices and weaker regional currencies have given investors pause for thought over emerging market assets, particularly those from countries such as Peru that export commodities to China.

"In EM it is hard not to be linked to China risk, but we already have a lot of China-related risk and at this (final pricing) level we didn't think it attractive," said Ricardo Adrogue, head of emerging markets debt at Babson Capital.

The country's Single A rating and the scarcity value of its debt were seen compensating for some of those risks, however.

And at 195bp, the Andean nation was seen offering a relatively decent premium to its existing 2025s, which were trading at a G-spread of around 158bp-162bp.

It was also about 20-25bp over the 170bp-175bp fair value level that one banker was calculating for a new 12-year.   Continuación...