LatAm credits move tighter but borrowers hold fire

miércoles 1 de julio de 2015 13:50 GYT

By Paul Kilby

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.   Continuación...