LATAM CLOSE- No deals price in LatAm primary market

martes 5 de julio de 2016 15:12 GYT
 

* Petrobras Argentina's US$500m bond rated B3: Moody's
    * Brazil central bank nominees support free-floating real
    * Celulosa Argentina's US$200m bond rated B3: Moody's
    * 10yr UST hits all-time low of 1.37%

    By Mike Gambale
    NEW YORK, July 5 (IFR) - No deals priced in the LatAm primary market on
Tuesday.
    
    Here is a snapshot of LatAm sovereign credit spreads:    
     SOVEREIGN      7/1   6/30  6/29   1D   10D   YTD    2015/16 HIGH
 ARGENTINA          488   488    474    0    4     -          -
 BARBADOS           690   692    666   -2    45    86   659 (2/11/16)
 BRAZIL             321   324    329   -3   -30   -165  542 (2/11/16)
 CHILE               96   108    104   -12   -6    10   143 (2/11/16)
 COLOMBIA           239   241    243   -2   -21   -50   412 (2/11/16)
 COSTA RICA         448   452    458   -4   -15   -69   587 (2/11/16)
 DOMINICAN REP      401   409    417   -8   -20   -14   542 (2/11/16)
 ECUADOR            950   949    923    1    21   -365  1765 (2/11/16)
 EL SALVADOR        660   663    670   -3   -16    20   840 (2/11/16)
 GUATEMALA          292   296    299   -4    4    -10   385 (2/11/16)
 JAMAICA            462   468    450   -6    20    13   519 (2/11/15)
 MEXICO             184   185    189   -1   -12   -10   278 (2/11/16)
 PANAMA             192   193    201   -1   -11   -14   272 (2/11/16)
 PERU               189   191    197   -2    -7   -42   291 (2/10/16)
 TRINIDAD & TOBAGO  233   232    231    1    15   135   173 (1/15/15)
 URUGUAY            245   256    258   -11  -11   -23   344 (2/11/16)
 VENEZUELA          2706  2704  2680    2   -174  -86   3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    One-day change shows most LatAm sovereigns tighter
    Ten-day trend 11 out of 17 sovereigns tighter
    YTD: Brazil 165bp 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 met with investors in London on Monday, and then 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.
    Petrobras Argentina's was rated B3 by Moody's.
    
    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 readying a US$200m seven-year seniour unsecured bond
sale. Moody's assigns B3 rating to proposed notes. 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)