NEW YORK, April 24 (IFR) - LatAm credits were coming off intraday highs Friday as investors took some profits after a decent run-up following the release of Petrobras’s full-year financials.
“Things were a bit overbought so people are squaring off positions ahead of the weekend,” said a New York-based trader.
Brazil 2025s were trading at a mid-market price of around 100.90 late afternoon after reaching 101.10-101.50 in the morning. Still that marks a good 1.50 point climb from levels seen at the beginning of the week.
Spreads on debt issued by Petrobras continued to hold firm going into the end of the session, with 2024s and 2044s being quoted at 400bp and 440bp, respectively.
Elsewhere, the recently minted 10-year issued by Argentine oil company YPF was enjoying further positive price action in the secondary market to hit a cash price of around 101.50, a good point up from a reoffer of 99.097.
Overall, the tone remains positive for the region, where on Friday Paraguay became the latest issuer to tap the market with a US$280m reopening of its 4.625% 2023, which priced at 103.11 to yield 4.15%, just 3bp wide to secondary levels.
“It is a small deal, there has been little supply (this year), and people like Paraguay,” said a syndicate manger.
This comes after the region enjoyed a decent spike in supply after Argentina’s YPF, miner Southern Copper and Chilean utility Guacolda together raised some US$5.54bn this week.
“This is the second busiest week of the year across EM,” said the syndicate manger. “It seems like things are picking up.”
Meanwhile, inflows into the asset class remain robust. Net EM bond fund inflows hit US$595m for the week, with local currency funds receiving US$283m, hard currency US$166m and blended funds US$145m, according to EPFR.
Banco Latinoamericano de Comercio Exterior (Bladex), a Panama-based trade bank, will kick off fixed-income investor meetings next week through BAML 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) wrapped up roadshows today in Miami after marketing a subordinated debt offering through Deutsche Bank. Pricing is expected next week.
The Guatemalan bank, which focuses on payroll-lending to public sector employees, is approaching investors with up to US$100m of 10-year sub loan participation notes, which are being recognized as Tier 2 capital by local regulators. The bank has corporate ratings of Ba3/BB-.
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 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)