Banco Agricola, Oi push week's new-issue tally close to US$4bn

jueves 11 de junio de 2015 17:13 GYT

By Paul Kilby

NEW YORK, June 11 (IFR) - Salvadoran bank Banco Agricola and Brazilian telco Oi together issued the equivalent of US$1bn on Thursday, bringing this week's supply tally to US$3.8bn.

A five-year from Banco Agricola, rated Ba2/BB+, quickly caught investor attention after leads dangled mid 7% area price thoughts, only to squeeze the yield by an eye-catching 75bp after books swelled to US$1.5bn.

In the end, the bond priced at par to yield 6.75%, the tight end of final 7% area guidance.

Price discovery proved tricky given the bank's zip code, debut status and the implicit support of its owner Bancolombia, which is rated higher at Baa2/BBB-/BBB-.

Accounts were mostly seeking a pick-up over the sovereign curve, where the 2019s were trading at a yield of around 5%, but differed on the extent of that spread.

At final pricing of 6.75%, the deal came close to the 150bp premium that Guatemala's Banco Industrial's 2021s (BB/BB) offer over its sovereign.

Others had been looking at Paraguay's Banco Regional, which also enjoys strong ownership through Rabobank, but its bonds trade some 250bp wide to the sovereign.

Across the Atlantic, book size on Brazilian telco Oi's EUR600m six-year bond reached a modest EUR1bn.   Continuación...