LATAM CLOSE-CABEI raises US$185m in the Formosa market

jueves 7 de abril de 2016 16:23 GYT
 

* Cabei raises US$185m first-ever dollar bond
    * Peru aims to complete discussions with Euroclear by end Q2
    * Panama leaks spur Argentina graft claims
    * Brazil's Tombini says inflation still a challenge
    * Argentina on road next week for first int'l bond in 15 years

    By Mike Gambale
    NEW YORK, April 7 (IFR) - Below is a recap of primary issuance in the LatAm
market on Thursday:
    
    Number of deals priced: 1
    Total issuance volume: US$185m
    
    CABEI
    Honduras-based Cabei raised US$185m from Taiwanese investors on Thursday
with its first-ever dollar bond in the Formosa market, the development bank's
head of capital markets told IFR.
    By issuing a Formosa bond in US dollars, the bank is following in the
footsteps of boldface US credits such as AT&T and Morgan Stanley.
    Cabei, rated A1/A/A, was also able to extend its debt maturities beyond 10
years as insurance companies are the principal buyers of such deals.
    The bank printed a US$25m 20-year non-call four bond at par to yield 4.40%
and a US$25m 30-year non-call five at par to yield 4.55%.
    It also sold a US$135m five-year floater that came at three-month Libor plus
50bp. HSBC was sole lead on the transaction.
    
    Here is a snapshot of LatAm sovereign credit spreads:   
     SOVEREIGN      4/6   4/5   4/4   1D   10D  YTD    2015/16 HIGH
 BARBADOS           657   660   654   -3   10    53   659 (2/11/16)
 BRAZIL             410   407   384    3   20   -76   542 (2/11/16)
 CHILE              101   102   100   -1   10    15   143 (2/11/16)
 COLOMBIA           284   288   273   -4   15    -5   412 (2/11/16)
 COSTA RICA         483   487   479   -4   -7   -34   587 (2/11/16)
 DOMINICAN REP      412   415   407   -3   -6    -3   542 (2/11/16)
 ECUADOR            1161  1155  1123   6   43   -154  1765 (2/11/16)
 EL SALVADOR        660   676   669   -16   4    20   840 (2/11/16)
 GUATEMALA          298   300   297   -2   -1    -4   385 (2/11/16)
 JAMAICA            441   445   446   -4   -21   -8   519 (2/11/15)
 MEXICO             201   204   196   -3   11    7    278 (2/11/16)
 PANAMA             202   204   195   -2   11    -4   272 (2/11/16)
 PERU               224   229   218   -5    7    -7   291 (2/10/16)
 TRINIDAD & TOBAGO  160   162   158   -2   22    62   173 (1/15/15)
 URUGUAY            267   272   266   -5    4    -1   344 (2/11/16)
 VENEZUELA          3319  3316  3250   3   280  527   3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS
    One-day change shows 13 of 16 LatAm credits tighter
    Ten-day trend shows 12 of 16 LatAm credits wider
    YTD: Ecuador tighter by 154bp, Venezuela wider by 527bp
        
    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.
    Timing and currency not yet certain, but the deal could come in early April.
    The sovereign is likely to try to issue up to US$15bn of bonds to help pay
litigant investors.

    Brazil could issue again this year if conditions allow, the treasury's
interim debt coordinator Leandro Secunho said. "There is no need for new (global
bond) sales, but if we see new windows of opportunity we will consider
reentering the market."
    The sovereign sold a US$1.5bn 2026 dollar-denominated bond on March 10,
tapping global markets for the first time since it lost its investment-grade
rating.
        
    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. 
    
    Argentine E&P company Medanito has wrapped up roadshows ahead of a possible
transaction through Itau and UBS. Expected rating is CCC+ by Fitch.
    
    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.

 (Reporting by Michael Gambale; Editing by Shankar Ramakrishnan)