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NEW YORK, July 16 (IFR) - An improved backdrop for global markets on Thursday has bankers hoping more LatAm borrowers will leap through what is an approximately two-week window before the August doldrums set in.
So far, America Movil's wireless tower spin-off Telesites, Chilean copper giant Codelco and the Jamaican sovereign are all seen as possible issuance candidates.
This comes amid local press reports that the Jamaican government is close to cutting a deal with Venezuela to buy back outstanding PetroCaribe debt at a steep discount.
The Caribbean nation is expected to fund the liability management operation through a bond issue, much like the Dominican Republic did earlier this year.
Jamaica recently wrapped up investor meetings through Citigroup, but according to two investors contacted by IFR, the bank has yet to approach the buyside about a deal.
Making such a trade economical will likely require Venezuela providing a substantial haircut on the PetroCaribe debt - which carries interest of between 1-2% - given fact that Jamaica will have to pay around 6% on a 10-year offering, say observers.
Issuing a 10-year bond may also prove tricky if the government wishes to avoid uncomfortable amortization spikes in 2025, when it already has two bonds maturing, said one investor.
A 15-year may be more suitable for the country's maturity profile, while a dual-tranche offering may offset some of the costs of issuing longer-dated paper, say bankers.
The sovereign's 7.625% 2025s are being quoted at a mid-market yield of around 5.80%, while its longer-dated 8% 2039s are being spotted at around 6.75%.
"Jamaica has good access to the market right now," said a DCM banker.
"There hasn't been a lot of supply, and they could get a nice response. Oil prices coming down is also a plus for Jamaica, as it is an importer of oil."
In the secondary markets, spreads were inching tighter on Thursday as investors found some relief in the Greek parliament's approval of the new bailout plan.
"All the potential hurdles (in regards to Greece) have been leapt and now we are watching rates and oil," said one New York-based trader of LatAm sovereign debt.
America Movil (A2/A-/A) and Telesites (expected NR/BBB-/BBB-) have wrapped up investor meetings via Citigroup, Inbursa, BBVA and Santander. The meetings were intended to discuss the new Operadora de Sites Mexicanos business and gauge interest for 144A/Reg S deals in Mexican pesos and/or USD.
Banco Santander Chile (Aa3/A/A+) has wrapped up meetings via Deutsche Bank and Santander to discuss opportunities in the domestic Chilean markets.
Jamaica (Caa2/B/B-) has wrapped up investor meetings via Citigroup. The meetings were described as a non-deal roadshow, but markets have been expecting the sovereign to raise funding to retire a PetroCaribe loan owed to Venezuela. (Reporting by Paul Kilby; Editing by Marc Carnegie)