21 de septiembre de 2015 / 21:04 / en 2 años

LATAM WRAP-Colombia seizes on positive tone to raise US$1.5bn

NEW YORK, Sept 21 (IFR) - Colombia took advantage of a small bounce in oil prices and a positive tone across Latin American credits away from Brazil on Monday to raise US$1.5bn through a new long 10-year deal.

The South American country, however, had to offer a generous premium to lure investors into the trade amid worries about the long-term outlook for crude prices.

It launched the transaction at a final spread of 245bp over Treasuries, a concession of around 30bp over its existing curve.

“It seems like a fairly healthy concession,” said a banker not involved in the trade, who had Colombia’s existing 4% 2024s quoted at a G-spread of 215bp at the close on Friday.

“People feel there is a fair amount of risk around oil.”

Demand for the deal reached US$3.5bn, according to one investor who participated, allowing the sovereign to launch at the tight end of guidance of 250bp (plus or minus 5bp) and inside initial price thoughts of 262.5bp area.

Secondary trading across the region was dominated once again by Brazil, whose assets severely underperformed as investors sought refuge into safer names in Mexico and in the Andean region.

Bonds of state-run oil company Petrobras were about 30bp-40bp wider at the short end of the curve, while long-dated notes were ending the session some 10bp-15bp, according to a New York-based trader.

“There is still some residual selling out there, particularly in Petrobras,” said the trader.

Brazilian telecom company Oi saw its bonds drop by as much as 15 points, after a local paper said the company had hired Rothschild as an advisor to restructure its debt - which Oi denied.

Oi said in a statement that it had hired NM Rothschild & Sons (Brasil) to optimize resources from the sale of PT Portugal SGPS with the aim of improving its debt profile, but denied the report that it was considering a debt restructuring.

Its notes, however, failed to recover from their intraday lows.


Mexico’s state-owned Bancomext has hired Bank of America Merrill Lynch and HSBC to arrange meetings with fixed-income investors ahead of a potential US dollar-denominated bond sale.

The meetings will take place in New York and Santiago on Wednesday, Boston and Los Angeles on Thursday, and London and Los Angeles on Friday. A 144A/Reg S transaction may follow, subject to market conditions.

Mexican white-goods manufacturer Controladora Mabe has started fixed-income investor meetings next week through Barclays, Bank of America Merrill Lynch, Citigroup and JP Morgan.

The issuer was in London today, and will head to Boston on September 22, in New York and Los Angeles on September 23 and in New York again on September 24. Ratings are BB+/BB+.

Aeris Holding Costa Rica, the operator of the Central American country’s main airport, is preparing an approximately US$127m bond sale, according to Moody‘s.

The agency, which assigned a provisional Ba2 rating to the deal, said proceeds would refinance loans extended by shareholders, the Overseas Private Investment Corporation and the IDB.

The Province of Neuquen, the third-largest oil-producing and the largest gas-producing province in Argentina, ended roadshows on Monday through Deutsche Bank and JP Morgan.

A USD-denominated 144A/Reg S senior secured capital market transaction (secured by gas royalties) may follow.

Panama’s Canal Authority (ACP) wrapped up roadshows on Monday through Bank of America Merrill Lynch as it looks to market a US dollar 144A/Reg S bond.

ACP, the entity in charge of the operation and expansion of the Panama Canal, is rated A2/A-/A.

Mexican real-estate investment trust Fibra Uno has completed meetings with fixed-income investors through Bank of America, Credit Suisse, HSBC and Santander.

Terrafina, another Mexican REIT, has also finished meeting accounts as it markets a potential US$400m-$500m bond offering.

The borrower has mandated Barclays and Citigroup as lead managers, with Itau coming in as co-manager. Expected ratings are Baa3/BBB-. Both REITs could tap the market this week. (Reporting by Davide Scigliuzzo; editing by Shankar Ramakrishnan)

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