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.
Sovereign bond prices largely failed to catch up with the afternoon recovery in US rates, but some corporate bond prices held their own and ended the day tighter.
Brazilian state-owned oil company Petrobras’ curve was closing some 5-10bp narrower, according to another trader. Its 2024s were closing at around 428bp-423bp, while the 2044s were being quoted at 464bp-455bp. Another Brazilian state-controlled entity, Eletrobras, fared less well, however.
Prices on the power company’s 2021s slid a good three points Thursday to 92.75-93.75 after it announced it would delay the filing of its annual report with the SEC.
The company is investigating whether the chief executive of subsidiary Eletronuclear received illegal payments as part of corruption at Petrobras.
Votorantim Cimentos (Baa3/BBB/BBB) has mandated Citigroup, Deutsche Bank, HSBC, Banco Votorantim, BB Securities, Bank of America Merrill Lynch, MUFG and Santander GBM to arrange a series of investor meetings ahead of a potential euro-denominated bond issue.
The meetings will take place in Frankfurt and Munich on May 4, London on May 5, and Amsterdam and Paris on May 6.
JB y Compania SA de CV (Jose Cuervo) kicked off fixed-income investor meetings this week through Bank of America Merrill Lynch and Citigroup as it seeks to market a possible senior unsecured US dollar bond.
After visiting London on Wednesday, the borrower was in Boston today and will see accounts in Los Angeles on Friday. It will head to Chicago on May 4 and New York on May 5. The spirits company, rated BBB/BBB by S&P and Fitch, is the world’s largest tequila producer.
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 Thursday, Los Angeles on May 4 and Miami on May 6. (Reporting By Paul Kilby; Editing by Shankar Ramakrishnan)