15 de abril de 2015 / 14:08 / hace 2 años

LatAm credits markets take breather after Brazilian rally

NEW YORK, April 15 (IFR) - Latin American credit markets took a breather Wednesday as investors garnered profits after a strong run up in Brazilian bond prices.

News earlier this week that Petrobras's board would meet April 22 2014 to approve 2014 audited results sparked a relief rally in Brazilian debt amid hopes that the oil company would meet covenant deadlines and avoid a downgrade to junk.

Petrobras 2024s were once again inching tighter Wednesday morning to be quoted earlier at 438bp, but traders see little upside from here.

"We are really quiet," said a New York-based trader. "People want Petrobras to get their results out so they don't get accelerated, but I don't know if we go much tighter. We have had a nice run-up."

Still, a better tone in Brazil has brought support to a primary market that has seen comparatively little supply this year.

BBVA Colombia is heard attracting a crowd ahead of a possible deal this week. Market participants are discussing low 300bp over Treasuries for its Tier 2 bond given that Colombian banks Davivienda and Bancolombia have sub debt due in 2022 trading at around that level.

"I would think they announce slightly above 300bp," said a second trader. "This new one is a 2025 so the market is asking for a bit more."

This comes as Colombian state-owned oil company Ecopetrol also prepares to raise funding in the capital markets following government approval to issue up to US$3.175bn in bonds. The news sent the company's bond prices lower this morning, with the 2025s being quoted at 97.875.

While that is some 50ct weaker on the day, Ecopetrol's debt has nevertheless recovered substantially since mid-March when concerns about a rout in crude sent the 2025s down to a mid-market price of 91.375.

Meanwhile, Empresa Electrica Guacolda, a coal-fire power complex in Chile, became the latest issuer to join the pipeline after mandating Citigroup, Goldman Sachs and Itau as global coordinators and Scotiabank as joint bookrunners for roadshows starting this week. Expected ratings are BBB-/BBB- by S&P and Fitch.

PIPELINE

ACI Airport Sudamerica, controlling shareholder of the concessionaire of Uruguay's Carrasco airport, has mandated BAML and Nomura to arrange investor meetings, which finish Wednesday in London and Los Angeles.

A potential senior secured 144A/Reg S deal backed by future dividends from 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 wrap up in New York today.

Pacific Rubiales, the largest private oil producer in Colombia, has kicked off investor meetings through Bank of America Merrill Lynch, Citigroup and HSBC.

The company will meet investors in Boston today and then head to Santiago on April 30; Los Angeles on May 4; and Miami on May 6. (Reporting By Paul Kilby)

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