LATAM CLOSE-Paraguay lone issuer in LatAm primary this week

jueves 24 de marzo de 2016 12:49 GYT
 

* Paraguay trades higher at US$100.75/101.15
    * CAF sells two Kangaroo bonds this week
    * LatAm primary expected to pick up next week

    By Mike Gambale
    NEW YORK, March 24 (IFR) - No deals priced in the LatAm primary market on
Thursday.
        
    Here is a snapshot of LatAm sovereign credit spreads:    
     SOVEREIGN      3/23  3/22  3/21  1D    10D   YTD    2015/16 HIGH
 BARBADOS           647   640   640    7     6     43   659 (2/11/16)
 BRAZIL             390   365   371   25    -20   -96   542 (2/11/16)
 CHILE               91    83    85    8     6     5    143 (2/11/16)
 COLOMBIA           269   257   256   12    -26   -20   412 (2/11/16)
 COSTA RICA         490   486   487    4    -21   -27   587 (2/11/16)
 DOMINICAN REP      418   403   411   15    -27    3    542 (2/11/16)
 ECUADOR            1118  1117  1070   1   -216   -197  1765 (2/11/16)
 EL SALVADOR        656   650   660    6    -3     16   840 (2/11/16)
 GUATEMALA          299   296   298    3    -14    -3   385 (2/11/16)
 JAMAICA            462   458   459    4    -5     13   519 (2/11/15)
 MEXICO             190   183   186    7    -11    -4   278 (2/11/16)
 PANAMA             191   185   186    6    -6    -15   272 (2/11/16)
 PERU               217   204   205   13     0    -14   291 (2/10/16)
 TRINIDAD & TOBAGO  138   143   147   -5    -48    40   173 (1/15/15)
 URUGUAY            263   257   258    6    -8     -5   344 (2/11/16)
 VENEZUELA          3039  2925  2874  114   -29   247   3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    One-day change shows most sectors widening except for Trinidad & Tobago    
    
    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)