LATAM CLOSE-No USD deals priced in LatAm primary this week

viernes 7 de octubre de 2016 14:29 GYT
 

* Banco Hipotecario sold amortizer Thursday night
    * LatAm stocks, currencies mostly down on Fed uncertainty
    * Brazil sees lowest inflation in a September since 1998

    By Mike Gambale
    NEW YORK, Oct 7 (IFR) - No deals priced in the LatAm primary market on
Friday.
        
    PRICED LAST NIGHT:
    Argentina's Banco Hipotecario on Thursday priced a US$400m-equivalent
three-year amortizing bond at par to yield 250bp over the Badlar rate. The
144a/Reg S notes are denominated in Argentine pesos and payable in US dollars.
Given Thursday's Badlar rate the yield equates to 24.7292%. BCP Securities,
Deutsche Bank and Santander led the transaction.
    
    VOLUME STATISTICS
    THIS WEEK'S (US$) VOLUME:
    0 tranches for US$0.00bn
    
    OCT VOLUME:
    0 tranches for US$0.00bn
    
    YTD VOLUME:
    91 tranches for US$89.381bn    
    
    
    Below is a snapshot of LatAm sovereign credit spreads:
      SOVEREIGN       10/6  10/5   10/4    1D   10D    YTD    2015/16 HIGH
 ARGENTINA            436    423    420    13    12     -           -
 BARBADOS             632    635    638    -3   -14    28     659 (2/11/16)
 BRAZIL               292    296    293    -4    1    -194    542 (2/11/16)
 CHILE                 63    64     68     -1   -13    -23    143 (2/11/16)
 COLOMBIA             208    212    210    -4    2     -81    412 (2/11/16)
 COSTA RICA           387    384    382    3     1    -130    587 (2/11/16)
 DOMINICAN REP        352    343    338    9     14    -63    542 (2/11/16)
 ECUADOR              846    856    856   -10    -4   -469   1765 (2/11/16)
 EL SALVADOR          528    515    495    13    55   -112    840 (2/11/16)
 GUATEMALA            243    241    237    2     2     -59    385 (2/11/16)
 JAMAICA              380    377    375    3     -2    -69    519 (2/11/15)
 MEXICO               168    172    174    -4   -12    -26    278 (2/11/16)
 PANAMA               143    146    146    -3   -13    -63    272 (2/11/16)
 PERU                 135    137    136    -2   -13    -96    291 (2/10/16)
 TRINIDAD & TOBAGO    207    206    210    1    -16    109    173 (1/15/15)
 URUGUAY              211    212    212    -1    -5    -57    344 (2/11/16)
 VENEZUELA            1976  1986   1992   -10   -263  -816   3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    One-day change mixed
    Ten-day trend: 10 out of 17 sovereigns tighter
    YTD: Chile tighter by 23bp
    YTD: Guatemala tighter by 59bp
    YTD: Trinidad & Tobago wider by 109bp
    
    PIPELINE  
    LATAM Airlines Group S.A. ("LATAM", NYSE: LFL), a Chile-based airline group,
mandated Citi and J.P. Morgan as global coordinators and joint bookrunners and
BNPP, BofAML, Deutsche Bank, and Santander as joint bookrunners to arrange a
series of fixed income investor meetings in Chile, Europe, and the US commencing
on October 12. A USD-denominated benchmark 144A/Reg S 7-year offering is
expected to follow, subject to market conditions.
    Meeting schedule as follows: October 12, Santiago; October 14, Los Angeles;
October 17, London; October 18, Boston; October 19, New York. 
    
    Global Bank, from Panama, is preparing a possible senior unsecured note. The
issuer was in Boston on Wednesday and Los Angeles on Thursday. 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.
    
    Nafin, a Mexican development bank, 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. 
    
    The Republic of Suriname (B1/B+/B+) is roadshowing this week and next to
market a potential debut 144A/Reg S bond offering.
    The borrower was scheduled to be in Trinidad and Tobago on Thursday and in
Jamaica on Friday. Next week, it will head to Switzerland on October 10, London
on October 11, Boston on October 12, the mid Atlantic coast on October 13, the
West Coast on October 14. Roadshows will finish in New York on October 17 and
18.
    Oppenheimer and Scotiabank have been mandated to organize the meetings
    
    Comision Federal de Electricidad (CFE), a Mexican state-owned utility, is
marketing a 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 Marc Carnegie)