DomRep, Bladex make it an active primary day for Latam

jueves 30 de abril de 2015 17:51 GYT

By Paul Kilby

NEW YORK, April 30 (IFR) - It was a relatively active day in the primary markets on Thursday where the Dominican Republic, rated B1/B+/B+, and Panama-based trade bank Bladex, rated Baa2/NR/BBB+, issued some US$1.35bn in new paper between them.

The Dominican Republic raised US$1bn through a dual-tranche reopening that saw order books swell to around US$2.5bn.

In the end, leads Bank of America Merrill Lynch and JP Morgan priced a US$500m tap of the 5.5% 2025s at 102.835 to yield 5.125%, the tight end of guidance of 5.15% (+/-2.5bp) and inside IPTs of 5.5% areas.

Meanwhile, a US$500m reopening of 6.85% 2045s came at 104.567 to yield 6.5%, the tight end of 6.55% area (+/-5bp) guidance and inside IPTs of 6.65% area.

Bladex came with its first bond offering in three years, pricing an upsized US$350m five-year bond at 99.653 with a 3.25% coupon to yield 3.326% or Treasuries plus 190bp, the tight end of 200bp area (+/-10bp) guidance.

In the secondary market, Latin American credits were ending mixed as the region's bond prices reacted to a volatile US Treasury market.

"We are off the wides of the day and it feels ok," said a New York based trader. "We didn't see any panic selling in regards to US Treasuries."

The yields on the 10-year benchmark hit a high of 2.11% after data showed that jobless claims in the US had fallen to a 15-year low last week, but they settled back down to 2.04% by day's end.   Continuación...