Three issuers add to LatAm primary uptick

jueves 29 de septiembre de 2016 16:17 GYT

By Paul Kilby

NEW YORK, Sept 29 (IFR) - Three more Latin American issuers hit the bond market on Thursday at the end of a busy week for the region after higher oil prices helped bolster sentiment toward the asset class.

Mexican retailer Liverpool, financial institution Banorte and Brazilian fuel distributor Ultrapar added another US$2bn in supply, bringing this week's tally so far to just over US$4bn.

This follows bond sales from the Republic of Peru, Votorantim Cimentos, AES Panama and Ecuador, with volumes likely to rise further if Argentina prints its euro bond on Friday.

While investors are cautious heading into the fourth quarter as they look to hold onto strong gains in EM this year, the bid for primary issues remained healthy on Thursday after OPEC's decision to cut output sent crude higher.

"Overall for EM the sentiment is good on a day when oil goes higher," said a London-based investor.

A 10-year bond from Liverpool, rated BBB+/BBB+, gained strong momentum earlier on, allowing leads to tighten guidance from IPTs of T+275bp area to T+250bp (plus/minus 5bp).

Investors like the credit - which hasn't been in the market since 2014 - even at a time when volatility in the peso could potentially hurt local currency revenue generators like Liverpool that are raising dollar debt.

"It is a big company with low leverage," said Jason Trujillo, a senior analyst at Invesco. "They can handle the currency volatility."   Continuación...