LATAM CLOSE-Latam issuers raise over US$5bn this week

viernes 1 de julio de 2016 11:41 GYT

* Argentina Chubut province plans US$500m amortizing bond
    * Chubut notes secured by hydrocarbon royalties from Pan American Energy
    * Colombian Costera raises US$250m-equivalent via dual-currency trade

    By Mike Gambale
    NEW YORK, July 1 (IFR) - No deals priced in the LatAm primary market on
    The bonds will be listed in Luxembourg and governed by New York law. The
expected rating on the 144A/RegS deal is BBB- by Fitch. Goldman Sachs is acting
as active bookrunner, while Scotiabank is coming in as co-manager.
    Proceeds are going to pay the construction costs and associated expenses for
the Concesion Cartegena Barranquilla Project which was awarded to the company
under the country's fourth generation concession framework.
    IPT: 6.875%-7.00% inflation-linked peso-denominated bond, 7.00% area on a US
dollar bond
    PRICED: Dual-currency 17.5-year deal
    - USD150.8m 6.75% 17.5-year (01/15/2034). At 98.017, 7% yld. Settle
07/08/2016. Average life 12.2 years on dollar bonds. 
    - COP327bn 6.25% 17.5-year (01/15/2034). At 94.237, 6.875% yld. Settle
07/08/2016. Average life 15 years on peso bond.
    Here is a snapshot of LatAm sovereign credit spreads:
     SOVEREIGN       6/30  6/29  6/28  1D  10D   YTD    2015/16 HIGH
 ARGENTINA           488   474   498   14  -10    -           -
 BARBADOS            692   666   667   26   42    88    659 (2/11/16)
 BRAZIL              324   329   347   -5  -41   -162   542 (2/11/16)
 CHILE               108   104   114   4    3     22    143 (2/11/16)
 COLOMBIA            241   243   261   -2  -30   -48    412 (2/11/16)
 COSTA RICA          452   458   465   -6  -18   -65    587 (2/11/16)
 DOMINICAN REP       409   417   424   -8  -17    -6    542 (2/11/16)
 ECUADOR             949   923   944   26  -11   -366  1765 (2/11/16)
 EL SALVADOR         663   670   676   -7  -19    23    840 (2/11/16)
 GUATEMALA           296   299   304   -3   1     -6    385 (2/11/16)
 JAMAICA             468   450   454   18   20    19    519 (2/11/15)
 MEXICO              185   189   203   -4  -19    -9    278 (2/11/16)
 PANAMA              193   201   216   -8  -17   -13    272 (2/11/16)
 PERU                191   197   210   -6  -11   -40    291 (2/10/16)
 TRINIDAD & TOBAGO   232   231   231   1    9    134    173 (1/15/15)
 URUGUAY             256   258   268   -2   -6   -12    344 (2/11/16)
 VENEZUELA           2704  2680  2711  24  -267  -88   3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    One-day change shows Argentina wider by 14bp
    Ten-day trend 12 out of 17 sovereigns tighter
    YTD: Brazil 162bp tighter
    Argentina's province of Chubut is looking to raise US$500m through
amortizing notes due 2026, according to Moody's Investors Service, which has
assigned a B3 rating to the issue.
    The notes will be secured by a percentage of hydrocarbon royalties to be
paid by the Argentine branch of Pan American Energy to the Province, the rating
agency said.
    The notes, which will be issued under New York law, will start amortizing in
24 quarterly instalments after a grace period of four years. The Province has
the legal capacity to increase or reopen the issue size up to US$650m.
    Chubut plans to use half of the proceeds from the sale to refinance existing
debt and the remainder to fund infrastructure work.
    Argentina infrastructure company CLISA is set to kick off roadshows this
week ahead of bond offering and liability management exercise. 
    The company will visit accounts in Chile, Switzerland, London, Boston, New
York and Los Angeles between July 1 and July 13. The bond is being done in
conjunction with a cash tender for US$87.106m of outstanding 11.50% notes due
    Holders are being offered a price of 110.00 if they tender by the early bird
date of July 13. Thereafter but before the expiration date of July 28, the price
drops to 106.50.
    BCP and Santander are acting as dealer managers on the tender and leads on
the bond sale.  

    Chile's Transelec, rated Baa1/BBB/BBB, will start roadshows this week as it
looks to market a potential 144A/RegS bond.
    The borrower will meet investors in Santiago on Thursday and next week will
head to London on Monday, Los Angeles on Tuesday and Boston and New York on
Wednesday. Transelec is Chile's largest power transmission company by kilometers
of lines. Citigroup, JP Morgan, Santander and Scotiabank are acting as leads.
    Petrobras Argentina is preparing an up to US$500m bond sale to fund a tender
for all of its US$300m of outstanding 5.875% 2017s, according to a filing with
local regulators. The borrower is seeking to raise 10-year money and has
mandated Citigroup and Deutsche on the deal. The announcement comes after Pampa
Energia agreed earlier this year to purchase a 67.2% stake in Petrobras
Argentina for US$892m.
    Argentine power company Pampa Energia will also hire four banks to lead a
new international bond sale that will refinance debt taken out to fund its
acquisition of Petrobras's Argentine assets. The company plans to hire Deutsche
Bank, Citigroup, ICBC and Banco Galicia to lead the bond sale, which will
refinance a US$700m bridge loan extended by the same lenders, Pampa chairman
Marcelo Mindlin told IFR.

    Mexican real-estate developer Grupo GICSA has finished investor meetings
through JP Morgan and Santander. The company has been marketing a US dollar
bond, which is expected to be rated BB/BB-.

    Celulosa Argentina is eyeing an up to US$250m seven-year bond sale,
according to a filing with local regulators. The pulp and paper company has been
in discussions with bankers from Citigroup and Credit Suisse about financing
options, the company said.

    Bolivia is hoping to sell an up to US$1bn 10-year bond in the coming months,
according to Economy Minister Luis Arce Catacora. Proceeds would go mainly
towards investment in healthcare, specifically hospitals. Bolivia is rated BB by
S&P and Fitch and one notch lower at Ba3 by Moody's.

 (Reporting by Mike Gambale; Editing by Shankar Ramakrishnan)