NEW YORK, July 1 (IFR) - LatAm credits were inching tighter on Wednesday amid hopes of a positive resolution to Greek debt talks, but borrowers opted to stay on the sidelines until more clarity emerges in Europe.
Issuers have largely erred on the side of caution as uncertainty over Greece clouds investor views toward new issuance - at least for now.
Just yesterday Mexican oil entity Pemex decided against moving forward with an up Ps15bn (US$956m) local multi-tranche offering, while Peruvian development bank Cofide has yet to emerge with an expected dollar offering after ending roadshows on Wednesday.
However, a positive outcome to Greece's bailout referendum over the weekend could encourage a growing list of companies to pull the trigger on both local and international trades in the last window before the summer lull.
In the meantime, the visible pipeline is getting fuller, with Mexican telco America Movil and its cellphone tower business Telesites hitting the road this week through Citigroup, Inbursa, BBVA and Santander.
The issuer is looking to sell bonds denominated in either dollars or pesos, though the latter is seen as preferred.
Shareholders approved the Telesites spinoff in April as part of regulatory changes designed in part to lessen America Movil's dominance in Mexico's telecom sector.
As part of the plan, Telesites shares would be listed on the Mexican stock exchange without a public offering and America Movil would transfer US$1.4bn of debt to the new company.
Elsewhere Colombian state-controlled conglomerate Empresas Publicas de Medellin (EPM) has filed an up to Ps4.5trn (US$1.7bn) debt shelf that allows it to issue in both pesos and dollars. This comes after the company agreed to buy Chilean water utility Aguas de Antofagasta for about US$965m.
EPM's telecom subsidiary UNE EPM has also received authorization to raise up to Ps1.2trn (US$456m) of new debt to be used for refinancing and capex. The company said it is analyzing various options including dollar bonds and loans.
Meanwhile, the secondary markets were enjoying a tightening trend on Wednesday, with Petrobras bonds outperforming as spreads narrowed another 8bp-10bp. The oil company's 2024s and Century bonds were being quoted at 430bp-420bp and 510bp-505bp, respectively.
Even Odebrecht bonds were holding steady despite Fitch's decision yesterday to downgrade some of the company's debt to BBB- following the arrest of its CEO last month.
America Movil (A2/A-/A) and Telesites (expected NR/BBB-/BBB-) mandated Citigroup, Indursa, BBVA and Santander to arrange fixed income investor meetings between June 29 and July 9.
The meetings will discuss the new Operadora de Sites Mexicanos business and to gauge interest in new 144A/Reg S deals in Mexican pesos and/or USD.
Aruba (NR/BBB+/BBB-) is soft-sounding its debut CHF denominated deal, a five year due 29 July 2020, at 2.5%-2.75% coupon and yield indication, equivalent to mid-swaps plus 277-302bp or Swiss governments plus 300-325bp.
Joint leads Credit Suisse and Raiffeisen Schweiz will sound today, with books expected to open Thursday.
Peruvian development bank Corporacion Financiera de Desarrollo SA (COFIDE) has wrapped up roadshows through Citigroup, Morgan Stanley and Standard Chartered. The borrower is rated BBB+/BBB+.
Banco Santander Chile has mandated Deutsche Bank and Santander to arrange global fixed-income investor meetings to discuss opportunities in the domestic Chilean markets.
The bank, rated Aa3/A/A+, will be in London on July 6, in Boston on July 7, in New York and nearby on July 8 and 9, and finish up in Los Angeles on July 10.
Jamaica, rated Caa2/B/B-, has wrapped up roadshows 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)