LATAM WRAP-Televisa bond plan brings hope to primary market

miércoles 18 de noviembre de 2015 16:44 GYT

By Paul Kilby

NEW YORK, Nov 18 (IFR) - Bankers were hoping on Wednesday that Mexican broadcaster Grupo Televisa may inject some much needed energy into Latin America's moribund primary markets before year-end.

The borrower announced on Tuesday that it intended to issue a bond for up to US$1.2bn over the next 90 days, market conditions permitting.

This follows the completion of global fixed-income investor meetings on Monday through Goldman Sachs, HSBC and Morgan Stanley.

"This is the type of name that could work unlike some of the off-the-run borrowers that have come in the last few weeks," said a DCM banker away from the trade.

Televisa has been absent from the dollar market since May 2014 when it sold a US$1bn 5% 2045 that came at 96.534 to yield 5.227% or 180bp over US Treasuries.

Like most LatAm corporates, however, Televisa management will have to get its mind around the wider clearing levels for bond funding at a time when investors are readjusting their views on emerging market risks.

Its 2045s were trading at a mid market price of around 89.20 on Wednesday, marking a good eight point drop since mid August.

While much of that fall reflects a corresponding decline in the price of the benchmark US Treasury, the spread on the 2045s has also widened about 30bp over that period to 266bp.   Continuación...