NEW YORK, April 23 (IFR) - Rallying US stock markets, higher oil prices and optimism over embattled oil company Petrobras all helped to lift LatAm credit prices higher on Thursday.
Improving sentiment proved fortuitous for both Argentine oil company YPF and Chilean utility Guacolda which benefited from multi billion dollar order books for their bonds today.
This comes as Brazilian corporates, including names embroiled in Petrobras's corruption scandal, all rallied as markets breathed a sigh of relief over the release of the oil company's results late Wednesday.
Oil names also received a boost as crude prices hit 2015 highs Thursday amid the ongoing conflict in Yemen. Brent reached US$64.85 a barrel, while US crude jumped to US$58.02.
Petrobras's curve was ending the day tighter with the benchmark 2024s closing some 25bp narrower at 420bp-410bp.
Market participants remain split over whether the current rally has legs given the hurdles Petrobras faces in the months ahead.
"It still faces challenges and it is not clear to me if Petrobras will tighten much from here," said Jorge Piedrahita, CEO of broker Torino Capital.
This comes after Argentina's YPF generated a close to US$5bn book, allowing it to upsize the 10-year bond sale to US$1.5bn and price 3/8 of a point tighter to initial talk of 9% area.
In the end the bond priced at 99.097 with an 8.5% coupon to yield 8.625%, the low end of guidance of 8.75% area (+/- 1/8), jumping on the break to around 100.50.
"There is pent-up demand from real-money players," said a banker. "They are looking for assets they can buy in bulk as it is hard to source paper."
Meanwhile, Chilean utility Empresa Electrica Guacolda raised US$500m through a 10-year bond that was priced at 99.944 with a 4.56% coupon to yield 4.567% or Treasuries plus 262.5bp, the tight end of guidance of 275bp (+/- 1/8). Books swelled to a peak of US$3bn plus.
As comps, leads were largely leaning on Chilean utilities AES Gener and Angamos, which had 2021s and 2029s trading last week at G-spreads of 229bp and 311bp.
Banco Latinoamericano de Comercio Exterior (Bladex), a Panama-based trade bank, is poised to kick off fixed-income investor meetings through Bank of America Merrill Lynch and Citigroup.
The borrower, rated Baa2/BBB/BBB+, will be in London and Los Angeles on April 27, in Switzerland and Boston on April 28 and in New York and Philadelphia on April 29.
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 approaching investors with an up to US$100m 10-year subordinated loan participation notes, which are being recognized as Tier 2 capital by local regulators.
It was in New York today and will head to Miami tomorrow. 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.
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 Shankar Ramakrishnan)