LATAM WRAP-Peru returns to euro market after 10-year hiatus

martes 27 de octubre de 2015 15:44 GYT

By Paul Kilby

NEW YORK, Oct 27 (IFR) - Peru returned to the euro market for the first time in over 10 years on Tuesday with a EUR1.1bn long 10-year bond as the Andean nation sought to prefund and diversify its investor base.

Order books of around EUR3.8bn allowed leads BBVA, BNP Paribas and JP Morgan to tighten pricing by up to 30bp over the course of the day.

After initially testing investor appetite with talk of mid-swaps plus 215bp-220bp, leads set final guidance at 205bp-210bp before pricing at 99.998 with a 2.75% coupon to yield 190bp over.

Peru has been absent from the euro market since October 2004, when as a low Double B issuer it printed an EUR850m 7.5% 10-year bond at mid swaps plus 355bp.

The Andean nation's credit standing has strengthened substantially since then with ratings now on par with Mexico's, or A3/BBB+/BBB+.

Today's final spread reflects such changes, though the deal came wide to Mexico's outstanding 2024s which were being quoted at 150bp over mid-swaps.

It also came wide to its dollar curve. One banker calculated the coupon on the new euro deal was about 4.50% in dollars or some 250bp over Treasuries.

That stands about 40bp wide to where a new dollar 10-year might come, he said.   Continuación...