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