LATAM WRAP-Mexican REITs to reopen primaries in unsteady market
By Paul Kilby
NEW YORK, Sept 8 (IFR) - Two Mexican real-estate investment trusts, Fibra Uno and Terrafina, forged ahead with roadshows on Tuesday, potentially ending a three-week lull in Latin American issuance.
The appearance of new bond sales on the horizon comes as a welcome relief to bankers who saw just three deals price in August amid a slump in the primary since the start of the year.
Both REITs announced roadshows after the Labor Day holiday, looking to raise new debt ahead of a potential US rate hike when the Federal Reserve meets next week.
But coming at the same time may complicate execution, as they risk cannibalizing demand among investors talking to both credits this week.
Fibra Uno may enjoy the upper hand, given its strong name recognition among accounts who have already bought its bonds. Terrafina will be making its market debut.
"Terrafina is miles behind Fibra Uno, which is best in its class and larger in terms of market cap and market share," one New York-based trader told IFR.
"Terrafina's best approach may be to wait for Fibra Uno - and let them do the hard work."
Overall the market backdrop was unsteady on Tuesday, as investors continue to fret about deteriorating credit metrics across Brazil's corporate complex. Continuación...