LATAM CLOSE-Two Latam issuers raise US$396.7m

miércoles 10 de agosto de 2016 17:14 GYT
 

* Jamaica to price Thursday; IPT 7% area
    * Argentina's Prat-Gay sees new capital markets bill soon
    * Tax amnesty may reduce Argentina's need to issue new debt: Prat-Gay

    By Mike Gambale
    NEW YORK, Aug 10 (IFR) - Below is a recap of primary issuance activity in
the LatAm primary market on Wednesday:
     
    Number of deals priced: 2
    Total issuance: US$250m, JPY15bn (US$146.7m)    
    
    BANCO DEL ESTATO DE CHILE
    Banco del Estado de Chile on Wednesday tapped its existing 0.48% 2026s for
an additional JPY15bn (US$146.7m), bringing the total outstanding to JPY25bn, a
source close to the situation told IFR.
    The Chilean lender originally issued the notes, which will finance socially
responsible investments, in June.
    Daiwa Capital Markets was sole lead on both transactions. The bonds are
rated A3/AA-/A+.
    
    PROVINCE OF CHACO
    Argentina's Province of Chaco has mandated BNP Paribas and UBS for a dollar
bond deal. The company is selling a US$250m bond amortizing eight-year bond with
a seven-year average life. Ratings are Caa1/B by Moody's and Fitch.
    IPT: Mid 9% area
    PRICE GUIDANCE: 9.50% area (+/- 12.5bp)
    LAUNCH: US$250m at 9.50%. 
    PRICED: US$250m. Cpn 9.373%. Due 8/18/2024. Ip US$99.99.373. Yld 9.50%.
Settlement date 8/18/2016. 
    BOOK: US$400m    
        
    Here is a snapshot of LatAm sovereign spreads:
     SOVEREIGN        8/9   8/8   8/5   1D   10D   YTD    2015/16 HIGH
 ARGENTINA            452   460   465   -8   -36    -           -
 BARBADOS             674   669   669    5    0     70    659 (2/11/16)
 BRAZIL               296   293   296    3   -13   -190   542 (2/11/16)
 CHILE                70     67    67    3    -6   -16    143 (2/11/16)
 COLOMBIA             220   217   220    3   -15   -69    412 (2/11/16)
 COSTA RICA           403   401   402    2    -6   -114   587 (2/11/16)
 DOMINICAN REP        343   347   352   -4   -42   -72    542 (2/11/16)
 ECUADOR              926   922   923    4    0    -389  1765 (2/11/16)
 EL SALVADOR          508   500   501    8    24   -132   840 (2/11/16)
 GUATEMALA            239   241   242   -2    -4   -63    385 (2/11/16)
 JAMAICA              405   403   404    2    -3   -44    519 (2/11/15)
 MEXICO               172   168   169    4    -9   -22    278 (2/11/16)
 PANAMA               170   167   167    3   -10   -36    272 (2/11/16)
 PERU                 170   166   166    4   -12   -61    291 (2/10/16)
 TRINIDAD & TOBAGO    198   194   197    4    -2   100    173 (1/15/15)
 URUGUAY              221   218   220    3   -20   -47    344 (2/11/16)
 VENEZUELA           2679   2631  2679  48    38   -113  3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    One-day change 14 out of 17 sovereigns wider
    Ten-day trend 13 out of 17 sovereigns tighter
    YTD: Brazil tighter by 190bp
    YTD: Colombia tighter by 69bp
    YTD: Uruguay tighter by 47bp
    
    PIPELINE:
    JAMAICA
    Jamaica set initial price thoughts of 7% area on a tap of its 8% 2039
amortizing US dollar bond that will finance the buyback of short-dated notes,
according to market sources.
    The Caribbean nation, rated Caa2/B/B, is yet to determine the size of the
reopening, which is expected to price on Thursday.
    The 2039s, of which the sovereign has US$500m outstanding, amortize in three
equal installments over their last three years to maturity.
    In a tender offer announced on Tuesday, Jamaica has offered to buy back the
10.625% 2017 bond at a price of 108.00 and the 8% 2019 at 110.50. 
    Bank of America Merrill Lynch and Citigroup are the bookrunners on the new
issue and dealer managers on the tender offer, which expires on Thursday.   

 (Reporting by Mike Gambale; editing by Shankar Ramakrishnan)