LATAM CLOSE-Colombia taps LatAm primary with EUR1.35bn bond

miércoles 16 de marzo de 2016 16:43 GYT
 

* Colombia returns to euro markets after 15-year hiatus
    * Argentina's lower house approves debt package
    * Brazilian assets drop again on cabinet reshuffle
    * Fitch cuts Usiminas to C

    By Mike Gambale
    NEW YORK, March 16 (IFR) - Below is a recap of primary issuance in the LatAm
primary market on Wednesday:
    
    Number of deals priced: 1
    Total issuance volume: EUR1.35bn     
        
    COLOMBIA
    Colombia (Baa2/BBB/BBB) announced a new 10-year benchmark euro bond. The SEC
registered notes came via BBVA, Goldman Sachs and JP Morgan.
    IPT: 4.125% area
    GUIDANCE: 4% area on 10-year euro bond
    LAUNCH: 3.875% on EUR1.35bn 10-year bond
    PRICED: EUR1.35bn 10-year; par; 3.875%Y - Settlement March 22, Final
maturity March 22 2026.
    BOOK: EUR3.5bn    
    
    Here is a snapshot of LatAm sovereign credit spreads:    
     SOVEREIGN      3/15  3/14  3/11  1D   10D   YTD    2015/16 HIGH
 BARBADOS           638   637   636    1    -7   34    659 (2/11/16)
 BRAZIL             437   403   398   34   -21   -49   542 (2/11/16)
 CHILE               83    82    81    1    -7   -3    143 (2/11/16)
 COLOMBIA           298   291   289    7   -28    9    412 (2/11/16)
 COSTA RICA         501   501   497    0   -35   -16   587 (2/11/16)
 DOMINICAN REP      437   441   441   -4   -11   22    542 (2/11/16)
 ECUADOR            1266  1277  1313  -11  -116  -49   1765 (2/11/16)
 EL SALVADOR        670   656   655   14    32   30    840 (2/11/16)
 GUATEMALA          301   298   302    3   -32   -1    385 (2/11/16)
 JAMAICA            458   459   464   -1   -15    9    519 (2/11/15)
 MEXICO             199   193   193    6   -16    5    278 (2/11/16)
 PANAMA             199   198   197    1    -1   -7    272 (2/11/16)
 PERU               218   211   212    7   -12   -13   291 (2/10/16)
 TRINIDAD & TOBAGO  176   182   182   -6   -11   78    173 (1/15/15)
 URUGUAY            270   265   266    5    -3    2    344 (2/11/16)
 VENEZUELA          3012  2952  2960  60    33   220   3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    One-day change shows Venezuela and Brazil wider by 60bp and 34bp,
respectively
    Ecuador tighter by 11bp overnight
    Sovereigns tighter YTD include: Brazil, Chile, Costa Rica, Ecuador,
Guatemala, Panama and Peru
    
    LATAM PIPELINE:
    Raizen Energy launched a cash tender offer on its 7% due 2017 notes,
according to a regulatory statement. The Brazilian company plans to buy up to
US$200m of the outstanding US$400m notes. Raizen is seeking to buy the bonds
back at 100.25, with a US$30 early bird incentive added. The early deadline is
March 4, with the final deadline on March 18. Citigroup, Credit Agricole and JP
Morgan are the dealer arrangers.
        
    Argentina will sell US$11.68bn worth of 5-, 10- and 30-year bonds under U.S.
law in mid April if Congress swiftly approves a debt deal for holdout creditors,
top finance ministry officials told Congress on Friday.
    Finance Secretary Luis Caputo told lawmakers who will debate the debt
agreement that the bonds would carry an interest rate in the region of 7.5%. 
    
    Colombia has mandated BBVA, Goldman Sachs and JP Morgan to organize meeting
with fixed-income investors in Europe to discuss opportunities in the capital
markets this year.
    Finance Minister Mauricio Cardenas will attend the meetings, which start on
March 8 in London. Discussions continue in Germany on March 9, the Netherlands
on March 10 and in London again on March 11. Ratings are Baa2/BBB/BBB
(stable/negative/stable) by Moody's, S&P and Fitch.
    
    The board of Argentine real estate developer IRSA has approved the issuance
of up to US$470m of debt, according to a filing with local regulators.
    
    The Province of Mendoza is looking to raise US$300m in both the local and
international markets to refinance debt, according to local reports. 
    
    Neuquen province is contemplating a bond issue. 
    
    The United Mexican States has filed an up to US$10bn debt shelf with the US
Securities and Exchange Commission. Proceeds will be used for general purposes,
including refinancing and the repurchase of debt.
    
    Argentine E&P company Medanito has wrapped up roadshows ahead of a possible
transaction through Itau and UBS. Expected rating is CCC+ by Fitch.
    
    Concesion Pacifico Tres, a toll-road concession in Colombia, wrapped up a
roadshow through Goldman Sachs. The company is looking to raise up to US$272m of
bonds, according to Fitch, which has rated the senior secured bonds BBB-.
    Pacifico Tres is jointly owned by Construcciones El Condor SA, Mario Alberto
Huertas Cotes, and Constructora MECO SA. Banca de Inversion is acting as its
financial advisor.
    
    Argentina utility Pampa Energia's shareholders have approved a US$500m debt
program.
    
    Uruguay plans to raise up to US$1.5bn in bonds this year.
    
    Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA), rated A- and A  by S&P
and Fitch, respectively, has mandated BBVA, Credit Suisse and Deutsche Bank to
arrange a series of fixed income investor meetings in Europe. 
    The investor meetings are expected to take place in the week commencing
March 7 2016. A euro-denominated bond transaction may follow subject to market
conditions.

 (Reporting By Michael Gambale; editing by Shankar Ramakrishnan)