LATAM WRAP-Neuquen joins pipeline as Petrobras sinks further

lunes 14 de septiembre de 2015 12:58 GYT

By Paul Kilby and Davide Scigliuzzo

NEW YORK, Sept 14 (IFR) - Argentina's gas-rich province of Neuquen joined a growing Latin American pipeline Monday as markets braced for this week's FOMC meeting, which could kick off long-expected US rates hikes.

The province is expected to raise US$350m through a 12-year bond with a four-year grace period, according to Fitch, which has rated the issue CCC.

Deutsche Bank and JP Morgan are organizing meetings with fixed-income investors from September 16-21, stopping in London, Boston, New York and a fourth location still to be determined.

The notes, which will be sold to international investors in 144A/Reg S format, will be secured by gas royalties.

Omar Gutierrez, Neuquen's elected governor, and Marcos Koopmann, the president of Banco Provincia del Neuquen, will attend the meetings.

Otherwise it was a relatively quiet day in the LatAm markets, though debt issued by Brazilian oil company Petrobras continues to widen after a second downgrade to junk last week.

The 10 to 30-year portion of the company's curve was inverting, with the 2024s being quoted at around 800bp, according to one investor.

"There will be pent-up supply in Brazilian paper as people throw in the towel, given S&P's rating downgrade to junk (for both the sovereign and Petrobras) last week," said a New York-based trader.   Continuación...