LATAM CLOSE-One issuer raises EUR2.5bn in primary market

miércoles 5 de octubre de 2016 15:01 GYT
 

* Argentina returns to euro market after 15-year hiatus
    * Codelco delays billions in investments as copper price bites
    * Fitch affirms Uruguay at BBB+
    * LatAm stocks, currencies mostly rise on US crude stock drop

    By Mike Gambale and Paul Kilby
    NEW YORK, Oct 5 (IFR) - Below is a recap of primary issuance activity in the
LatAm market on Wednesday:
     
    Number of deals priced: 1
    Total issuance: EUR2.5bn    
    
    Argentina (B3/B-) announced a two-part bond sale comprising a Jan 2022 note
and a Jan 2027 bond. BBVA, BNP Paribas and Credit Suisse are the leads on the
Reg S only benchmark-sized notes.
    IPTs: 5-year 4.5% area, 10-year at 5.625% area
    GUIDANCE: Five-year at 4.375% area, 10-year at 5.5% area
    FINAL GUIDANCE: Five-year at 4.125% (+/- 1/8), 10-year at5.25% (+/-1/8)
    LAUNCH: EUR1.25bn five-year at 4%, EUR1.25bn 10-year at 5.125%.
    PRICED: EUR1.25bn five-year: 99.432; 3.875%C; 4%Y, settlement Oct 12 2016,
final maturity Jan 15 2022.
    EUR1.25bn 10-year: 99.045; 5%C; 5.125%Y, settlement Oct 12 2016, final
maturity Jan 15 2027
    BOOK: Combined books at reoffer, EUR6.25bn
    
    
    Below is a snapshot of LatAm sovereign credit spreads:      
     SOVEREIGN      10/4  10/3  9/30  1D   10D   YTD    2015/16 HIGH
 ARGENTINA          420   422   427   -2    4     -          -
 BARBADOS           638   645   645   -7    -6    34   659 (2/11/16)
 BRAZIL             293   288   289    5    2    -193  542 (2/11/16)
 CHILE               68    70    73   -2   -11   -18   143 (2/11/16)
 COLOMBIA           210   204   200    6    -1   -79   412 (2/11/16)
 COSTA RICA         382   387   390   -5    -5   -135  587 (2/11/16)
 DOMINICAN REP      338   338   340    0   -20   -77   542 (2/11/16)
 ECUADOR            856   870   884   -14  -21   -459  1765 (2/11/16)
 EL SALVADOR        495   477   479   18    11   -145  840 (2/11/16)
 GUATEMALA          237   243   245   -6    -9   -65   385 (2/11/16)
 JAMAICA            375   380   381   -5    -5   -74   519 (2/11/15)
 MEXICO             174   179   184   -5    -2   -20   278 (2/11/16)
 PANAMA             146   148   154   -2   -16   -60   272 (2/11/16)
 PERU               136   138   144   -2   -21   -95   291 (2/10/16)
 TRINIDAD & TOBAGO  210   215   218   -5    -8   112   173 (1/15/15)
 URUGUAY            212   217   218   -5   -11   -56   344 (2/11/16)
 VENEZUELA          1992  2013  2122  -21  -346  -800  3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    One-day change 13 out of 17 sovereigns tighter
    Ten-day trend 14 out of 17 sovereigns tighter
    YTD: Chile tighter by 18bp
    YTD: Guatemala tighter by 65bp
    YTD: Trinidad & Tobago wider by 112bp
        
    PIPELINE:  
    Panama's Global Bank is preparing to issue a possible senior unsecured note.
The issuer was in Boston on Wednesday and will head to Los Angeles on October 6.
Ratings are Ba1/BBB-/BBB-. 
    The deal is being done in conjunction with a tender for its outstanding 2017
covered bonds. Citigroup, Deutsche Bank and JP Morgan have been mandated as
leads, with UBS coming in as co-manager.
    
    Mexican development bank Nafin wrapped up roadshows last week, as it looks
to market a potential US dollar bond through Bank of America Merrill Lynch and
HSBC. The issuer is rated A3/BBB+/BBB+. 
          
    Bermuda started fixed-income investor meetings this week as it markets a
potential bond trade to finance a tender for existing bonds.
    The borrower is visiting accounts in London, New York, Boston and Los
Angeles all this week, and wrapping up with conference calls on October 10. 
    The deal is being done in conjunction with a tender for up to US$150m tender
for its outstanding 2020 and 2023 notes. HSBC is leading the transaction. 
    
    Mexican state-owned utility Comision Federal de Electricidad (CFE) is
marketing possible US$1bn 10-year bond. 
    The borrower finished roadshows in New York and Boston on Wednesday. Ratings
are Baa1/BBB+/BBB+. BBVA, Bank of America Merrill Lynch and Citigroup have been
mandated to arrange the meetings. 

 (Reporting by Mike Gambale; Editing by Paul Kilby)