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NEW YORK, March 5 (IFR) - Latin American credit markets saw mixed flows on Thursday as investors turned their attention to some rare dollar supply from Costa Rica and Kimberly-Clark de Mexico.
Costa Rica raised US$1bn through a 30-year bond that priced at par to yield 7.158% or US Treasuries plus 445bp, the mid-point of 440bp-450bp guidance and tight to 462.5bp IPTs.
Leads Deutsche Bank and HSBC stopped short of pushing to the tight end of guidance in order to reach the US$1bn size. Books peaked around US$4bn plus before dropping back to US$3.5bn.
The new issue concession was seen somewhere in the 15-20bp range versus the sovereign's 2044s, which were heard spotted around 425bp pre-announcement.
Further up the credit spectrum, Kimberly-Clark de Mexico returned to market with a US$250m 10-year that priced at 99.459 to yield 3.314% or Treasuries plus 120bp
That was at the tight end of guidance of 125bp area (+/-5bp) and inside IPTs of 135bp area.
While the small size kept some investors away, the deal was able to attract enough accounts to push the order book to just shy of US$1bn.
Bank of America Merrill Lynch and Citigroup were leads on the 144A/Reg S (no reg rights) A-/A rated bond.
Brazil's credit market was resilient today even though the Petrobras scandal intensified as the federal prosecutor on the case requested to investigate some leading politicians.
Petrobras bonds slipped in and out of positive territory today in response to movement in Treasuries, where the yield on the 10-year benchmark ended the day at around 2.11%.
Petobras 2024s and 2044s were both closing at around 490bp.
"We have seen clients looking for bonds here," said a trader.
Mexican cement name Cemex saw little movement after S&Ps decision to put its B+ rating on positive outlook today. The move brings S&P closer to Fitch, which rates the credit BB-.
S&P cited improving credit metrics and solid growth prospects in the US and Mexico, which is making a push to build its infrastructure. The company's new 2025 has come off its highs but at 100.625-101.125 is well above the reoffer of 99.98.
Mexican media company TV Azteca is bringing to market a rare project bond related to the development of the Andean country's fiber optic network.
Panama has filed with the SEC to sell up to US$3.04bn in debt, raising expectations that the sovereign could soon come to the international bond market.
Reporting By Paul Kilby