UPDATE 2-Uruguay leads busy week for LatAm primary
By Paul Kilby
NEW YORK, July 13 (IFR) - Uruguay led the charge on Wednesday in what has become a busy week for Latin American primary bond markets, launching a US$1.147bn dual-tranche tap.
The sovereign joins a string of issuers rushing to market this week on the back of a robust rally in EM over the last few weeks.
Uruguay saw order books swell to around US$5.4bn before launching a US$400m tap of its 4.375% 2027s at T+205bp and a US$747m reopening of its 5.1% 2050s at T+275bp.
Strong demand allowed leads to narrow pricing a good 15bp from start to finish, while still offering investors a 5bp-15bp concession over a curve where the 2027s and 2050s were being spotted in the low 190s and 270bp area, respectively.
"The country has some issues with inflation and it is on negative outlook [from S&P], but that is largely priced in - and in this environment of low rates, it looks attractive," said a New York-based trader.
Uruguay certainly fit the bill among investors still on the hunt for yield in a market where trillions of dollars of government debt is currently trading with negative yields.
"Investors are looking for yield and duration and this issue fulfills both those requirements," a syndicate banker away from the deal told IFR. Continuación...