LATAM CLOSE-No deals price in LatAm primary market

martes 22 de marzo de 2016 15:53 GYT
 

* Argentina could come to market in early April
    * Argentina mandates BBVA, Citi, DB, HSBC, JPM, Santander, UBS
    * Yields around 8% for a 10yr would be realistic - source

    By Mike Gambale
    NEW YORK, March 22 (IFR) - No deals priced in the LatAm primary market on
Tuesday.
    
    Here is a snapshot of LatAm sovereign credit spreads:        
     SOVEREIGN      3/21  3/18  3/17  3/16  1D   10D   YTD    2015/16 HIGH
 BARBADOS           640   646   644   639   -6    -9    36   659 (2/11/16)
 BRAZIL             371   383   405   432   -12  -60   -115  542 (2/11/16)
 CHILE               85    86    84    90   -1    -6    -1   143 (2/11/16)
 COLOMBIA           256   262   269   302   -6   -55   -33   412 (2/11/16)
 COSTA RICA         487   500   509   509   -13  -28   -30   587 (2/11/16)
 DOMINICAN REP      411   416   423   441   -5   -43    -4   542 (2/11/16)
 ECUADOR            1070  1054  1139  1193  16   -281  -245  1765 (2/11/16)
 EL SALVADOR        660   669   668   672   -9    8     20   840 (2/11/16)
 GUATEMALA          298   306   306   305   -8   -23    -4   385 (2/11/16)
 JAMAICA            459   466   461   463   -7   -15    10   519 (2/11/15)
 MEXICO             186   191   194   201   -5   -26    -8   278 (2/11/16)
 PANAMA             186   192   194   202   -6   -18   -20   272 (2/11/16)
 PERU               205   205   204   216    0   -26   -26   291 (2/10/16)
 TRINIDAD & TOBAGO  147   158   175   182   -11  -51    49   173 (1/15/15)
 URUGUAY            258   269   266   269   -11  -19   -10   344 (2/11/16)
 VENEZUELA          2874  2895  2891  2971  -21  -156   82   3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    One-day change shows all LatAm sovereigns flat or tighter except for Ecuador
    
    LATAM PIPELINE:
    Argentina named BBVA, Citigroup, Deutsche Bank, HSBC, JP Morgan, Santander
and UBS as joint bookrunners for a possible bond sale, a source familiar with
the matter told IFR on Tuesday.
    The timing and currency of the bond offering are not yet certain but the
deal could come to market in early April, the source said.
    Expectations of a deal have been building since Argentina sealed an
agreement with holdout creditors three weeks ago. (Full Story)
    Barring any objections from Congress, the republic is likely to try to issue
up to US$15bn of bonds in April in an effort to pay litigant investors.
    
    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.
      
    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)