NEW YORK, April 9 (IFR) - Latin American credits experienced a volatile session on Thursday, as currency weakness in many of the region’s markets put a damper on the morning’s strong performance.
“We opened strong following headlines that Petrobras was going to publish financial statements (before April 20), but then the Mexican peso blew up,” said a corporate bond trader in New York.
The Mexican peso weakened by 1.2% falling back to 15 against the dollar during the session, while other LatAm currencies such as the Brazilian Real and the Chilean peso were also ending weaker.
Several investment-grade corporate bonds came off their intra-day highs as a result but were still ending the day stronger, with Brazilian banks and Eletrobras seen outperforming. The latter’s 2019s, for example, closed up three points at 98.00-98.75.
Bonds of high-yield corporates also suffered price swings, but were mostly ending unchanged, according to a second New York-based trader.
“Cemex was pretty active, but I think people are still looking to get a sense of direction,” said the trader, who had the company’s 2025s last quoted at 102.125-102.500, or unchanged on the day.
In the Brazilian sugar and ethanol space, meanwhile, a 2020 note issued by Tonon dropped by 2.75 points to a low of around 26 before finding some buyers, said the trader.
Among sovereigns, however, it was Mexico’s new EUR1.5bn century bond that captivated market participants.
The note, which was issued on Wednesday at 95.322, jumped by more than six points on its first day of trading to close at around 101.5, said a third trader.
ACI Airport Sudamerica, the controlling shareholder of the concessionaire of Uruguay’s Carrasco airport, has mandated Bank of America Merrill Lynch and Nomura to arrange investor meetings.
The meetings will take place in New York and Santiago on April 13, Boston and New York on April 14 and London and Los Angeles on April 15. A potential senior secured 144A/Reg S transaction backed by future dividends received in connection to a long-term airport concession contract may follow.
ACI Airport Sudamerica is controlled by Corporacion America Airports, which has 52 airports under management.
BBVA Colombia has hired BBVA Securities and Morgan Stanley to arrange investor meetings ahead of a potential US dollar-denominated Tier 2 subordinated bond offering.
The meetings will take place in Los Angeles on April 10, London on April 13, Boston on April 14 and New York on April 15.
Pacific Rubiales, the largest private oil producer in Colombia, has kicked investor meetings through Bank of America Merrill Lynch, Citigroup and HSBC.
The company was in London today, and will head to Switzerland on April 10, New York on April 13 and 14, Boston on April 15, Santiago on April 30, Los Angeles on May 4 and Miami on May 6. (Reporting by Davide Scigliuzzo; Editing by Paul Kilby)