LATAM CLOSE-No deals price in LatAm primary market

miércoles 21 de septiembre de 2016 15:53 GYT
 

* Eldorado selloff does little to dampen Brazilian bond allure
    * Municipality of Cordoba sets IPTs on new bond
    * America Movil eyes purchase of Brazil's Oi

    By Mike Gambale and Paul Kilby
    NEW YORK, Sept 21 (IFR) - No deals priced in the LatAm primary market on
Wednesday.
    
    Here is a snapshot of LatAm sovereign spreads:
     SOVEREIGN       9/20   9/19   9/16  1D   10D  YTD     2015/16 HIGH
 ARGENTINA            429    440   448   -11   9    -           -
 BARBADOS             642    641   641    1   -23   38    659 (2/11/16)
 BRAZIL               302    307   316   -5   26   -184   542 (2/11/16)
 CHILE                77     78     78   -1   13    -9    143 (2/11/16)
 COLOMBIA             217    224   230   -7   17   -72    412 (2/11/16)
 COSTA RICA           391    392   395   -1   11   -126   587 (2/11/16)
 DOMINICAN REP        360    361   366   -1   16   -55    542 (2/11/16)
 ECUADOR              896    902   906   -6    9   -419   1765 (2/11/16)
 EL SALVADOR          493    492   489    1   39   -147   840 (2/11/16)
 GUATEMALA            241    246   250   -5    6   -61    385 (2/11/16)
 JAMAICA              380    379   379    1   -7   -69    519 (2/11/15)
 MEXICO               179    181   185   -2   22   -15    278 (2/11/16)
 PANAMA               166    169   172   -3   17   -40    272 (2/11/16)
 PERU                 161    164   166   -3   12   -70    291 (2/10/16)
 TRINIDAD & TOBAGO    217    212   209    5    2   119    173 (1/15/15)
 URUGUAY              222    223   221   -1   11   -46    344 (2/11/16)
 VENEZUELA           2418   2484   2458  -66   7   -374   3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    One-day change mostly tighter
    Ten-day trend 15 out of 17 sovereigns wider
    YTD: Barbados wider by 38bp
    YTD: Ecuador tighter by 419bp
    YTD: Panama tighter by 40bp
    
    PIPELINE:
    PIPELINE:
Argentina's municipality of Cordoba has set initial price thoughts of low to mid
8% on USD150m eight-year amortizing bond, with pricing expected as soon as
Thursday.
    
The Reg S bond, which amortizes in years six, seven and eight, is expected to be
rated B3 (Moody's) / B (Fitch). Use of proceeds is to refinance certain existing
indebtedness and fund infrastructure projects and public works. Santander is the
bookrunner. 

Mexican financing and leasing company Unifin started international roadshows
this week in an effort to market a new US dollar denominated bond. The borrower
ended roadshows in New York on Wednesday. Expected ratings are BB/BB by S&P and
Fitch. Citigroup, Credit Suisse and UBS have been mandated as joint bookrunners.

The Republic of Peru has started roadshows in the US and Europe to market a
local currency bond sale to international investors. Fixed-income investor
meetings will take place between September 19 and 23, stopping in New York, Los
Angeles, Boston, London and Frankfurt. BBVA, Bank of America Merrill Lynch and
HSBC have been mandated to arrange the meetings. Ratings are A3/BBB+/BBB+.

Ouro Verde Locacao e Servicio is meeting investors to market a possible US
dollar 144A/RegS bond. The company finished roadshows in New York on Wednesday.
The Brazilian company, rated BB-/BB-, leases heavy equipment, machinery and
fleets of light vehicles. Bradesco, Santander and Scotiabank are organizing
roadshows.

Mexico's Banco Inbursa has finished marketing a new US dollar 10-year senior
unsecured bond, which is expected to be rated BBB+/BBB+. Bank of America Merrill
Lynch, Citigroup and Credit Suisse have been mandated as leads.

JSL, a logistics services provider operating in Brazil, has wrapped up roadshows
on a possible 144A/Reg S senior unsecured US dollar bond. BB Securities,
Bradesco BBI, Morgan Stanley and Santander have been mandated on the deal.
Ratings are BB/BB by S&P and Fitch.

Bankers are marketing a Green bond to help fund the construction and operation
of Mexico City's new international airport. The bond, which is being issued
through a special purpose trust, is expected to be the first of up to US$6bn of
such trades, allowing the borrower to create an extensive curve over time.
Bondholders will be paid through cash flows collected from passenger charges
from the current airport and the new Mexico City International Airport (NAICM)
that will start operations in 2020. The issuer wrapped up roadshows in New York
on Monday. Citigroup, HSBC and JP Morgan are acting as global coordinators,
while BBVA and Santander are coming in as joint bookrunners. Expected ratings
are Baa1/BBB+/BBB+.

Brazil's BRF GmbH, a wholly owned subsidiary of BRF SA, (rated Ba1/BBB/BBB) has
finished roadshows organized by BB Securities, Bradesco, Itau, JP Morgan and
Santander. A US dollar-denominated 144A/Reg S senior unsecured bond issue with
intermediate to long maturity is expected to follow, subject to market
conditions.

Votorantim Cimentos (rated Ba2 /BB+/BBB-) has mandated Banco Votorantim, BofA
Merrill Lynch, Citigroup, HSBC, JP Morgan and Santander to arrange a series of
fixed income investor meetings in Europe and the United States, commencing on
September 22, 2016.
    
A benchmark USD144A/Reg S senior notes offering with intermediate maturity may
follow, subject to market conditions and results of a concurrent tender offer.
The roadshow starts in Switzerland on September 22 and continues in London on
September 23. The tender is for cash and is targeting the following outstanding
EUR notes: EUR559.7m 3.250% 2021s.

 (Reporting by Mike Gambale; Editing by Paul Kilby)