LATAM CLOSE-No deals price in LatAm primary market

lunes 21 de marzo de 2016 15:14 GYT
 

* CAF picks banks for 5-year Kangaroo bond
    * Pacific Exploration delays interest payment
    * Election shake-up may present risks in Peru: Nomura

    By Mike Gambale and Paul Kilby
    NEW YORK, March 21 (IFR) - No deals priced in the LatAm primary market on
Monday.
    
    Here is a snapshot of LatAm sovereign credit spreads:   
     SOVEREIGN       3/18  3/17   3/16  1D   10D   YTD    2015/16 HIGH
 BARBADOS            646    644   639    2    5     42   659 (2/11/16)
 BRAZIL              383    405   432   -22  -41   -103  542 (2/11/16)
 CHILE                86    84     90    2    0     0    143 (2/11/16)
 COLOMBIA            262    269   302   -7   -43   -27   412 (2/11/16)
 COSTA RICA          500    509   509   -9   -10   -17   587 (2/11/16)
 DOMINICAN REP       416    423   441   -7   -28    1    542 (2/11/16)
 ECUADOR             1054  1139   1193  -85  -295  -261  1765 (2/11/16)
 EL SALVADOR         669    668   672    1    26    29   840 (2/11/16)
 GUATEMALA           306    306   305    0   -11    4    385 (2/11/16)
 JAMAICA             466    461   463    5    -1    17   519 (2/11/15)
 MEXICO              191    194   201   -3   -15    -3   278 (2/11/16)
 PANAMA              192    194   202   -2    -6   -14   272 (2/11/16)
 PERU                205    204   216    1   -21   -26   291 (2/10/16)
 TRINIDAD & TOBAGO   158    175   182   -17  -24    60   173 (1/15/15)
 URUGUAY             269    266   269    3    2     1    344 (2/11/16)
 VENEZUELA           2895  2891   2971   4   -105  103   3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    One-day change shows Ecuador and Brazil tighter by 85bp and 22bp,
respectively
    Ten-day trend shows Ecuador tighter by 295bp
    Seven out of sixteen LatAm sovereigns tighter YTD    
    
    LATAM PIPELINE:
    Latin American development bank Corporacion Andina de Fomento has mandated
ANZ and Deutsche Bank for a five-year Kangaroo bond offering. CAF last visited
the Australian market on September 3 2015 for a A$50m (A$38m) tap of its 4.5%
June 5 2025 line, which lifted the issue size to A$325m.
    The reopening priced at 101.731 to yield at 4.28%, equivalent to 135bp over
asset swaps and 158bp wide of the April 2025 Australian Commonwealth government
bond. CAF, rated Aa3/AA-/AA-, issued its inaugural A$275m 4.25% three-year
Kangaroo on August 21 2013 before reopening the line six days later for a A$75m
tap. The bond matures in six months. On October 30 2013, CAF sold a A$225m 6.25%
10-year bond.
    
    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)