29 de octubre de 2015 / 19:59 / en 2 años

LATAM WRAP-Nafin makes rare appearance with Green bond

NEW YORK, Oct 29 (IFR) - Mexican state-owned development bank Nafin took advantage of moderately solid conditions on Thursday to sally forth with its first cross-border debt sale in 16 years.

Nafin tightened talk from low 200bp over US Treasuries to 195bp (+/-5bp) before launching a US$500m Green bond at 190bp. That was in line with the 180bp-200bp fair value range calculated by bankers.

Investors took a shine to what is one of just a handful of Green bonds out of the region. The rare five-year tenor was also thought to appeal - and helped swell books to over US$2.5bn.

“Green funds are a little less price-sensitive,” one banker told IFR. “There are not many Green bonds out there, and they need to put money to work.”

The deal came on a relatively buoyant day for LatAm credit even as US Treasury yields rose and stocks slipped after the Federal Reserve left the door open on Wednesday for a possible rates hike as soon as December.

Nafin’s bond is just the fourth LatAm deal to see the light of day in a month that has been dominated by high-grade sovereigns and quasi-sovereigns.

LatAm high-yield corporates, on the other hand, have largely seen funding doors slam shut in what remains a tough backdrop for emerging markets.

Issuance from junk-rated LatAm companies hit a five-year low during the third quarter and will likely remain constrained as slower Chinese growth, weaker commodities and the threat of higher US rates cloud conditions, Moody’s said on Thursday.

“While refinancing risk for speculative-grade companies remains manageable from now through 2016, with US$8.7bn of upcoming debt maturities, risk aversion to emerging markets and Latin America in particular will dampen speculative-grade issuance,” the rating agency said.

Mexican construction firm ICA became the latest junk credit to fall victim to tough credit conditions as it announced Thursday it had hired Rothschild to explore ways to improve liquidity and reduce leverage.

The company said it had no intention to declare bankruptcy or enter insolvency proceedings. Its 2024s were being offered at around 32.75, or down about eight points on the day.


Chilean financial institution Tanner kicked off fixed-income investor meetings as it looks to market a possible 144a/Reg S bond sale through Bank of America Merrill Lynch and JP Morgan.

Roadshows finish on November 4. Expected ratings are BBB- by S&P and Fitch. The company is considering a US$300m five-year senior bond, according to Fitch.

CAF (Aa3/AA-/AA-) held a call on Tuesday ahead of a potential euro-denominated Reg S benchmark transaction. BAML, CA-CIB, CS and HSBC arranged the call.

Mexican white-goods manufacturer Controladora Mabe has finished investor meetings through Barclays, Bank of America Merrill Lynch, Citigroup and JP Morgan. Ratings are BB+/BB+.

Mexican REIT Fibra Uno completed meetings with investors through Bank of America, Credit Suisse, HSBC and Santander.

Terrafina, another Mexican REIT, has finished meeting accounts as it markets a potential US$400m-$500m bond offering. The borrower mandated Barclays and Citigroup as lead managers, with Itau as co-manager. Expected ratings are Baa3/BBB-.

Brazilian airline GOL Linhas Aereas Inteligentes (B3/B-/B-) completed roadshows with Morgan Stanley, Credit Suisse and Citigroup. (Reporting by Paul Kilby; Editing by Marc Carnegie)

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