16 de abril de 2015 / 21:14 / en 2 años

Investors cut exposure to Petrobras in mixed session

NEW YORK, April 16 (IFR) - Latin American credit markets put in a mixed performance Thursday as investors cut some exposure to Brazilian oil company Petrobras after a substantial run-up in the credit.

While accounts have found some relief in expectations that audited financials will be released by month's end, many feel good news has largely been priced into the Petrobras story at this stage.

"We are neutral across asset classes and would look at further strength as an opportunity for investors to reduce risk on Petrobras bonds," said a bank in a note to clients today.

A second downgrade to junk - after Moody's rating action January - is still a possibility over the next 12 months given Petrobras's weak fundamentals, it added. Petrobras's investment spending is expected to be 20% lower over the next five years, Reuters reported today, citing a source at the company.

Against that backdrop, the belly of company's curve was ending about 11bp wider today, with the 2024s being quoted at around 462bp.

Meanwhile, sovereign debt prices rose and fell alongside US Treasuries, which saw yields jump on improving manufacturing data only to shrink later in the day. Brazil 2025s closed at around 99.50-99.75, while Mexico 2025s ended at 102.75-103.25.

Meanwhile, EM bonds enjoyed their fourth consecutive week of inflows, though investors are staying clear of EM corporate bond funds amid concerns about the impact of possible US rate hikes later this year, EPFR said today.

That said, lack of supply in the primary markets is driving investors into the arms of high-quality borrowers, including BBVA Colombia, which printed an upsized US$400m 10-year Tier 2 bond today on the back of some US$2.7bn in demand.

The 4.875% bond priced at 99.914 to yield 4.886% or Treasuries plus 300bp, the tight end of guidance of Treasuries plus 300bp-310bp and inside initial thoughts of plus 325bp area.

At final pricing, the deal is coming just on top of the similarly rated, but shorter dated subordinated 2023s issued by Banco de Bogota, which were being quoted at 295bp earlier in the session.

The deal also came inside the other comparable, Bancolombia, which had subordinated 2022s being spotted earlier today at around 315bp.

PIPELINE

Banco de los Trabajadores (Bantrab) will hit the road next week to market a possible subordinated debt offering through Deutsche Bank.

The Guatemalan bank, which focuses on payroll lending to public sector employees, will be in Santiago on April 20, in Switzerland on April 22, in New York on April 23 and in Miami on April 24. The bank carries corporate ratings of Ba3/BB- by Moody's and Fitch.

ACI Airport Sudamerica, controlling shareholder of the concessionaire of Uruguay's Carrasco airport, has mandated BAML and Nomura to arrange investor meetings, which finished 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.

Empresa Electrica Guacolda S.A. (Guacolda) will kick off roadshows this week as it markets a senior unsecured 144A/RegS USD bond. The borrower mandated Citigroup, GS and Itau as global coordinators while Scotiabank is joint bookrunner.

The issuer will be in Santiago and London on Friday and the following week it will head to Los Angeles on April 20, New York on April 21 and Boston and New York on April 22. Guacolda is owned 50% plus 1 share by AES Gener (Baa3/BBB-/BBB-), with the remainder being held by infrastructure fund Global Infrastructure Partners. Expected ratings are BBB-/BBB-.

Pacific Rubiales, the largest private oil producer in Colombia, kicked off investor meetings through BAML, Citigroup and HSBC. The company will head to Santiago on April 30; Los Angeles on May 4; and Miami on May 6.

Reporting by Paul Kilby; Editing by Natalie Harrison

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