New deals from Peru, Ecuador steal limelight in mixed session
By Davide Scigliuzzo
NEW YORK, March 19 (IFR) - New bond deals from Ecuador and Peru stole the spotlight Thursday in a mixed session for a Latin American credit market that is still under pressure from falling crude prices.
"The market was mixed depending on the names you look at," said a corporate bond trader in New York. "Petrobras was 10bp wider and we saw sellers of some second-tier Brazilian banks."
Brazilian beef companies such as Marfrig and JBS, however, were outperforming, with their bonds ending the day as much as 1.5 points higher in price.
Marfrig's 2020s were last spotted at a cash price of around 92, while JBS's 2024s were quoted at 101.5, said the trader.
Among sovereigns, Venezuela bonds received a boost on news that the country was poised to receive US$10bn of financing from China.
A senior official at state-owned oil company PDVSA told Reuters that the financing would comprise the renewal of a US$5bn bilateral deal and a new US$5bn loan linked to contracts with Chinese companies seeking to develop local oil fields.
"We were assuming a rollover of the Tranche B for about US$4.5bn, so there are about US$5bn additional," said Jorge Piedrahita, CEO of brokerage Torino Capital. "No wonder that local demand has been more aggressive than usual this week."
Venezuela's 2022 notes ended the session a point and a half higher in price at 44.25-45.25, while state-owned oil company PDVSA's 8.5% 2017 rose by nearly three points to 65.0-65.5. Continuación...