UPDATE 3-Petrobras paves path for corporates with jumbo bond

martes 17 de mayo de 2016 17:07 GYT

(Adds new details and quotes)

By Mike Gambale and Paul Kilby

NEW YORK, May 17 (IFR) - Oil firm Petrobras opened the door for Brazilian corporates on Tuesday after printing a US$6.75bn two-part bond - the first domestic company to sell a crossborder issue since June 2015.

The deal - coming less than a week after Congress agreed to start impeachment proceedings against former president Dilma Rousseff and replace her with business friendly Michel Temer - got orders of close to US$20bn.

This strong demand helped the state-controlled entity squeeze pricing 25bp-37.5bp before printing at a final yield of 8.625% on a US$5bn five-year and 9.00% on US$1.75bn 10-year.

The large order book underscored appetite for a credit seen benefiting from the recent change to a government capable of reviving economic growth in Brazil.

"Temer is a game-changer and structural reforms will put Brazil on a better footing and be a catalyst for Brazilian spreads to rally from here," Kevin Ritter, a portfolio manager at Western Asset Management, told IFR.

The country's bond prices have rallied extensively during the run-up to the final decision on impeachment, with yields on Petrobras' 2024s narrowing about 175bp since early April, according to Thomson Reuters data.

This bodes well for other Brazilian corporates looking to tap what may be a brief window of opportunity.   Continuación...