LATAM WRAP-Colombia seizes on positive tone to raise US$1.5bn

lunes 21 de septiembre de 2015 17:02 GYT

By Davide Scigliuzzo

NEW YORK, Sept 21 (IFR) - Colombia took advantage of a small bounce in oil prices and a positive tone across Latin American credits away from Brazil on Monday to raise US$1.5bn through a new long 10-year deal.

The South American country, however, had to offer a generous premium to lure investors into the trade amid worries about the long-term outlook for crude prices.

It launched the transaction at a final spread of 245bp over Treasuries, a concession of around 30bp over its existing curve.

"It seems like a fairly healthy concession," said a banker not involved in the trade, who had Colombia's existing 4% 2024s quoted at a G-spread of 215bp at the close on Friday.

"People feel there is a fair amount of risk around oil."

Demand for the deal reached US$3.5bn, according to one investor who participated, allowing the sovereign to launch at the tight end of guidance of 250bp (plus or minus 5bp) and inside initial price thoughts of 262.5bp area.

Secondary trading across the region was dominated once again by Brazil, whose assets severely underperformed as investors sought refuge into safer names in Mexico and in the Andean region.

Bonds of state-run oil company Petrobras were about 30bp-40bp wider at the short end of the curve, while long-dated notes were ending the session some 10bp-15bp, according to a New York-based trader.   Continuación...