NEW YORK, April 21 (IFR) - Latin American credits were on solid footing Tuesday, with most bonds from the region flat to tighter as global stocks climbed and oil prices remained steady.
Though Brazil was on holiday, its sovereign and quasi-sovereign debt ahead was up on the expected release of delayed Petrobras results this week, said a New York-based trader.
The sovereign’s benchmark 2025s were trading about a point higher at 100.45, while the five-year CDS was being quoted at 321bp, according to Thomson Reuters data.
Petrobras was also trading tighter, with its 2024s quoted at 450bp-440bp after it announced it had clinched about US$4bn in bank financing to cover its funding needs for the rest of 2015.
“The total of US$6.6bn recently raised in new funding plus the US$3bn in sale/leaseback places the company in a more comfortable liquidity position and I think it may delay some asset sales,” Omar Zeolla, an analyst at Oppenheimer, wrote in a report.
Meanwhile high-grade credits elsewhere in the region were continuing to catch a decent bid, tightening against a flat Treasury market.
Southern Copper’s new 10 and 30-year bonds were being quoted at 196bp-193bp and 335bp-332bp, after pricing Monday at 205bp and 340bp, respectively.
The miner, which has operations in Peru and Mexico, saw books swelled to US$8.25bn despite broader concerns about the commodity sector.
Other recent issues were also holding their own. BBVA Colombia’s new Tier 2 10-year was quoted at 100.80-101.00, marking a good point jump since it priced last week.
Many of the region’s high-grade names are trading near recent tights - and look expensive versus Brazil, which is still lagging this year despite a good run-up this month.
“A lot of the (investment-grade Andean) names are now trading higher and tighter than pre-Thanksgiving levels before the crude oil meltdown,” said the trader in New York.
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, is in Switzerland on April 22, New York on the 23rd and Miami on the 24th. 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, mandated Bank of America Merrill Lynch and Nomura for investor meetings that concluded last week 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) has kicked off roadshows as it markets a senior unsecured 144A/Reg S USD bond. The borrower mandated Citigroup, GS and Itau as global coordinators, while Scotiabank is joint bookrunner.
The company is in New York today and will head to Boston and New York on April 22. Guacolda is owned 50% plus 1 share by AES Gener (Baa3/BBB-/BBB-), while the remainder is held by infrastructure fund Global Infrastructure Partners. Expected ratings are BBB-/BBB-.
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 heads to Santiago on April 30, Los Angeles on May 4 and Miami on May 6. (Reporting by Paul Kilby; Editing by Marc Carnegie)