LATAM CLOSE-Latam issuers raise over US$5bn this week
* 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 Friday. PRICED LATE THURSDAY COSTERA 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 SPREAD TRENDS: One-day change shows Argentina wider by 14bp Ten-day trend 12 out of 17 sovereigns tighter YTD: Brazil 162bp tighter PIPELINE: 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 2019. 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)
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