NEW YORK, July 10 (IFR) - Latin American credits were ending the day generally tighter, with several names paring back losses from earlier this week on improved sentiment around Greece and China.
The spread on the EM CDX index was ending 10bp tighter, while bonds issued by Brazilian state-run oil company Petrobras were 8bp tighter on average, said a trader in New York.
Bonds issued by metals and mining companies also staged a recovery, with Brazilian mining companies Vale and Samarco tightening by 15bp and 12bp respectively on the day.
“There has been renewed optimism around Greece and we have seen the second day of (equity) gains in China,” said the trader.
“People felt like taking risk and we have seen better buyers all week in spite of the (initial) widening in spreads.”
Chilean copper miner Codeldo appeared to lag the rally, mostly because of expectations the company will soon issue up to US$2.5bn in the bond markets, said the trader. Codelco’s existing bonds were just 6bp tighter on Friday.
Elsewhere in Chile, SQM saw its bonds drop by as much as three points, after it failed to reach an agreement with a government agency that has sought to terminate contracts with the company.
The arbitral dispute stems from a scandal over possible illicit payments and fake tax receipts at SQM that erupted earlier this year.
SQM’s 2020 notes were last quoted at 99-100, while its 2023s and 2025s were both spotted at 85-87, according to the trader.
Among new issues, a new 2025 note issued on Thursday by Chilean power company AES Gener tightened by 15bp on its first day of trading and was last quoted at 99.90-100.05 for a G-spread of 260bp on the bid side.
America Movil (A2/A-/A) and Telesites (expected NR/BBB-/BBB-) have wrapped up investor meetings via Citigroup, Indursa, BBVA and Santander.
The meetings were intended to discuss the new Operadora de Sites Mexicanos business and gauge interest for new 144A/Reg S deals in Mexican pesos and/or USD.
Banco Santander Chile (Aa3/A/A+) has wrapped up meetings via Deutsche Bank and Santander to discuss opportunities in the domestic Chilean markets.
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)