LATAM WRAP-Nafin makes rare appearance with Green bond

jueves 29 de octubre de 2015 15:58 GYT

By Paul Kilby

NEW YORK, Oct 29 (IFR) - Mexican state-owned development bank Nafin took advantage of moderately solid conditions on Thursday to sally forth with its first cross-border debt sale in 16 years.

Nafin tightened talk from low 200bp over US Treasuries to 195bp (+/-5bp) before launching a US$500m Green bond at 190bp. That was in line with the 180bp-200bp fair value range calculated by bankers.

Investors took a shine to what is one of just a handful of Green bonds out of the region. The rare five-year tenor was also thought to appeal - and helped swell books to over US$2.5bn.

"Green funds are a little less price-sensitive," one banker told IFR. "There are not many Green bonds out there, and they need to put money to work."

The deal came on a relatively buoyant day for LatAm credit even as US Treasury yields rose and stocks slipped after the Federal Reserve left the door open on Wednesday for a possible rates hike as soon as December.

Nafin's bond is just the fourth LatAm deal to see the light of day in a month that has been dominated by high-grade sovereigns and quasi-sovereigns.

LatAm high-yield corporates, on the other hand, have largely seen funding doors slam shut in what remains a tough backdrop for emerging markets.

Issuance from junk-rated LatAm companies hit a five-year low during the third quarter and will likely remain constrained as slower Chinese growth, weaker commodities and the threat of higher US rates cloud conditions, Moody's said on Thursday.   Continuación...