LATAM CLOSE-No deals price in LatAm primary market

miércoles 11 de mayo de 2016 16:47 GYT
 

* Province of Mendoza sets guidance on eight-year amortizer
    * Lead pulls Tocumen bond before settlement
    * BlackRock slows EM debt buying
    * Brazil markets near 2016 highs of Senate impeachment vote

    By Mike Gambale
    NEW YORK, May 11 (IFR) - No deals priced in the LatAm primary market on
Wednesday.
    
    Below is a snapshot of LatAm sovereign credit spreads:    
 SOVEREIGN          5/10  5/9   5/6   1D   10D  YTD   2015/16 HIGH
 BARBADOS           659   658   657   1    17   55    659 (2/11/16)
 BRAZIL             360   367   362   -7   -1   -126  542 (2/11/16)
 CHILE              91    90    89    1    9    5     143 (2/11/16)
 COLOMBIA           272   274   272   -2   8    -17   412 (2/11/16)
 COSTA RICA         490   491   486   -1   17   -27   587 (2/11/16)
 DOMINICAN REP      422   423   422   -1   12   7     542 (2/11/16)
 ECUADOR            986   993   986   -7   -85  -329  1765 (2/11/16)
 EL SALVADOR        658   658   653   0    34   18    840 (2/11/16)
 GUATEMALA          300   302   299   -2   25   -2    385 (2/11/16)
 JAMAICA            439   434   435   5    10   -10   519 (2/11/15)
 MEXICO             191   193   190   -2   9    -3    278 (2/11/16)
 PANAMA             197   197   197   0    5    -9    272 (2/11/16)
 PERU               198   198   197   0    10   -33   291 (2/10/16)
 TRINIDAD & TOBAGO  185   186   183   -1   38   87    173 (1/15/15)
 URUGUAY            253   258   259   -5   0    -15   344 (2/11/16)
 VENEZUELA          2941  2964  2951  -23  -11  149   3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    One-day change shows most sovereigns tighter
    Ten-day trend: 13 out of 16 sovereigns wider
    
    PIPELINE:
    Argentine mortgage bank Banco Hipotecario has mandated Bank of America and
Itau on a tap of its 9.75% 2020s ahead of investors calls this week.
The borrower has set a minimum size of US$100m on the tap, which will be rated
B3/B- by Moody's and S&P. Investor calls will take place on Thursday and Friday,
with pricing expected next week.
    Proceeds are going toward working capital, investments in tangible assets
and loan originations. There are currently US$200m in outstanding 2020s.
    
    The Province of Mendoza is expected to price a US$300-US$500m 2024
amortizing bond on Thursday after releasing guidance at 8.875% area (plus/minus
12.5bp), tight to initial price thoughts of low 9%.
    The senior unsecured 144A/RegS bond has an average life of seven years and
amortizes in 2022, 2023 and 2024. Proceeds will go to pay debt and fund social,
infrastructure and other public investment projects. Citigroup and Credit Suisse
are acting as leads on the trade, which is rated B3/B- by Moody's and S&P.    

 (Reporting by Mike Gambale; editing by Shankar Ramakrishnan)