LATAM WRAP-Venezuela bonds rebound on election result

lunes 7 de diciembre de 2015 16:50 GYT

By Davide Scigliuzzo

NEW YORK, Dec 7 (IFR) - Venezuela stole the limelight in Latin America on Monday after partial results in the weekend's election showed the opposition party with a handy win over the ruling Socialists.

International bonds issued by both Venezuela and state-owned oil company PDVSA jumped as much as four points in early trading before retracing slightly.

Venezuela's 12.75% 2022s were ending the day at 51-52, according to a Miami-based broker, while PDVSA's 6% 2024s were spotted at 37-38.

"The jump of two to three points we are seeing does not reflect the tectonic change happening in Venezuela," said Jorge Piedrahita, chief executive of brokerage Torino Capital.

Activity in the region's primary markets meanwhile has ground to a halt, with Argentina's Medanito seen as one of the few borrowers who could still tap before year-end.

The oil and gas producer began meeting investors Monday for a potential bond sale, but the company risks jumping the gun after the election of a new reform-minded government.

Market-friendly president-elect Mauricio Macri could remove price controls that have artificially propped up the domestic oil sector and undertake other broad energy sector reforms.

And that could spell trouble for investors buying into the offering from Medanito, which is expected to raise at least US$150m with the bond sale in order to refinance existing debt.   Continuación...