LATAM CLOSE-Four primary deals for US$3.85bn priced this week

viernes 8 de julio de 2016 13:49 GYT
 

* Petrobras US$3bn tap accounts for bulk of week volume
    * Contentious Peru bond could pay off handsomely for Gramercy fund
    * Brazil police launch probe into Panama's FPB Bank

    By Mike Gambale
    NEW YORK, July 8 (IFR) - No deals priced in the LatAm primary market on
Friday.
        
    Here is a snapshot of LatAm sector spreads:
     SOVEREIGN       7/7   7/6   7/5   1D   10D  YTD    2015/16 HIGH
 ARGENTINA           505   499   496    6   43    -           -
 BARBADOS            699   698   700    1   56    95    659 (2/11/16)
 BRAZIL              329   325   326    4   -8   -157   542 (2/11/16)
 CHILE                96    99   105   -3    3    10    143 (2/11/16)
 COLOMBIA            239   238   238    1   -5   -50    412 (2/11/16)
 COSTA RICA          437   443   446   -6   -14  -80    587 (2/11/16)
 DOMINICAN REP       396   402   407   -6   -6   -19    542 (2/11/16)
 ECUADOR             932   932   939    0   13   -383  1765 (2/11/16)
 EL SALVADOR         615   650   655   -35  -41  -25    840 (2/11/16)
 GUATEMALA           283   294   300   -11   7   -19    385 (2/11/16)
 JAMAICA             453   459   470   -6   20    4     519 (2/11/15)
 MEXICO              182   181   185    1   -4   -12    278 (2/11/16)
 PANAMA              191   191   193    0   -2   -15    272 (2/11/16)
 PERU                186   188   189   -2   -5   -45    291 (2/10/16)
 TRINIDAD & TOBAGO   224   238   241   -14  18   126    173 (1/15/15)
 URUGUAY             246   249   253   -3    2   -22    344 (2/11/16)
 VENEZUELA           2712  2705  2707   7   55   -80   3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    One-day change El Salvador tighter by 35bp
    Ten-day trend Argentina and Venezuela wider by 43bp and 55bp, respectively
    YTD: Brazil tighter by 157bp
    YTD: Ecuador tighter by 383bp
    
    PIPELINE:
    Mexico's consumer finance lender Credito Real (BB+/BB+) has hired Barclays,
Deutsche Bank and Morgan Stanley to arrange a series of meetings with
fixed-income investors in the US, Europe and Latin America ahead of a potential
144A/Reg S US dollar-denominated bond issue. The meetings will take place in
London on July 8, Boston, Los Angeles and Lima on July 11, and New York and
Santiago on July 12.
    Proceeds from the sale will help finance a tender on Credito Real's 7.5%
2019s, on which the company has US$425m outstanding, according to Thomson
Reuters data.
    
    Argentina's Banco de Galicia y Buenos Aires has hired Deutsche Bank and JP
Morgan as joint bookrunners and Standard Chartered as lead manager to arrange a
series of meetings with fixed-income investors ahead of a potential 144A/Reg S
US dollar-denominated Basel III compliant Tier 2 bond issue.
    The lender is looking to raise up to US$300m through the 10-year bond sale,
according to Moody's.
    The meetings will take place in London and the West Coast on July 11, New
York and Boston on July 12 and New York on July 13.
    
    The Province of Chubut has hired Bank of America Merrill Lynch and BNP
Paribas to arrange a series of investor meetings ahead of a potential US
dollar-denominated bond sale.
    The borrower will visit investors in Europe and the US and wrap up meetings
on July 14.
    It is seeking to raise US$500m through amortizing notes due 2026, according
to Moody's, which assigned a B3 rating to the issue earlier this month.
    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.
    
    Argentina infrastructure company CLISA is meeting investors ahead of a bond
offering and liability management exercise. 
    The company is scheduled to 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.
    BCP and Santander are acting as dealer managers on the tender and leads on
the bond sale.
    
    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 is 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 assigned a 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)