CORRECTED-UPDATE 2-Province of Buenos Aires bonds get strong reception

miércoles 9 de marzo de 2016 18:28 GYT
 

(Corrects reference to Cemex in graf 9)

By Will Caiger-Smith and Natalie Harrison

NEW YORK, March 9 (IFR) - The Province of Buenos Aires priced US$1.25bn of debt maturing in 2024 inside an initial price talk range on Wednesday, after investors placed US$3.7bn of orders.

The issuer agreed to upsize the deal from its initial size based on the strength of demand, and set final pricing at a yield of 9.375%, inside initial talk of mid to high 9%.

Over 230 investors bought the bonds, said a banker working on the transaction.

"It should perform well," said an investor following the deal, adding that the Argentine government's settlement with creditors in February would have broadened the deal's appeal.

Investors may have more Argentine debt to buy soon, with the City of Buenos Aires and the sovereign both planning a return to the market.

The deal's success reflected a positive tone towards Latin American credits on Wednesday, with Mexican cement company Cemex also upsizing and tightening its US$1bn 10-year non-call five deal.

That transaction represented the first dollar-denominated corporate bond out of Latin America so far this year.   Continuación...