2 de julio de 2015 / 17:28 / en 2 años

LATAM WRAP-LatAm eyes pick-up but Greece woes weigh

NEW YORK, July 2 (IFR) - LatAm bankers are expecting a pick-up in primary activity in July, but the standoff between Greece and its creditors is clouding views on how busy the market will be.

One syndicate official in New York said volumes this month could be between US$5bn and US$20bn, depending on whether some of the large borrowers in the region decide to tap the market.

“I know of a trade that could be around US$2.5bn next week,” the banker told IFR, saying that some sovereigns may also be thinking about issuing over the coming weeks.

“If Brazil comes or Petrobras comes, it could be several billions.”

Another syndicate official said that, with a rate hike from the Federal Reserve largely priced in for later this year, some issuers might not feel the need to issue this summer.

“Issuers are not wild about their spreads, which have drifted wider on the back of illiquidity, Greece and lower oil prices,” the second banker said.

“The ones who can be selective feel like they might have a better window.”

Chilean power utility AES Gener became the latest to join the deals pipeline on Thursday, as it announced investor meetings ahead of a potential US dollar deal.

According to rating agency Fitch, the company is expected to raise up to US$450m through a 10-year Bullet.

Proceeds will be used to refinance a US$308m 2022 note issued for the Nueva Venanta project and to tender for local US dollar-denominated 2019s totaling US$102.2m, according to Fitch.

Activity in the secondary market was particularly slow on Thursday, with most investment-grade bonds in the region seen ending the day some 2bp tighter in spreads, according to a New York-based trader.


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. Credit Suisse and Raiffeisen Schweiz are joint leads on the deal.

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 Davide Scigliuzzo; Editing by Marc Carnegie)

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