LATAM WRAP-Primary activity grinds to halt as Petrobras in focus

jueves 10 de diciembre de 2015 17:56 GYT

By Davide Scigliuzzo

NEW YORK, Dec 10 (IFR) - Bankers covering Latin America are ready to put 2015 behind them, as a rout in oil prices and more negative headlines out of Brazil indicate December is likely to end with virtually no issuance out of the region.

Hopes that opportunistic borrowers might try to exploit a narrow window before a key Federal Reserve meeting next week were dashed by the latest leg down in oil prices.

International bond issuance volumes out of the region are down nearly 50% this year compared to 2014, according to Thomson Reuters data.

"I can't think of anyone who would want to put their name out in this market," said a syndicate banker in New York.

Latin American issuers have so far sold in December a meager US$155m of bonds in the international markets, including a US$100m tap for Argentine state-run oil company YPF and a SFr55m bond issue for regional development bank Cabei.

It is unclear whether a small bond issue for Argentine oil and gas producer Medanito, which wrapped up investor meetings on Thursday, will manage to clear the market against this backdrop.

Lead managers Itau BBA and UBS were yet to release an update on the deal on Thursday.

In the secondary market, Petrobras stole much of the limelight after Moody's late on Wednesday downgraded its rating on the state-run oil company by one notch to Ba3.   Continuación...