January 18, 2017 / 11:22 PM / a year ago

LATAM CLOSE-Five issuers set to raise US$6.52bn equiv in primary

* Order books on Argentina’s bond swell ahead of pricing

* Embraer preps roadshows to market dollar bond

* LatAm nations jump into bond market before Trump inauguration

* CBC eyes dollar and sol denominated debt sale

By Mike Gambale

NEW YORK, Jan 18 (IFR) - Below is a recap of primary issuance activity in the LatAm primary market on Wednesday:

Number of deals priced: 4

Deals to price later Wed: 1

Total expected issuance volume: US$6.52bn equiv


Republic of Colombia (COLOM), Baa2/BBB/BBB, announced a US$ benchmark SEC registered 2-part senior unsecured note offering that includes a long 10-year (April 2027) and a tap of the 5% 6/15/45 notes. The active bookrunners are Citi, ITABBA, MS. The notes contain a MWC. UOP: General Budgetary Purposes. Settlement: T+5 (Jan 25, 2017).

IPTs: 10yr T+185bp area, 30yr tap T+235bp area

GUIDANCE: 10yr: T+170bp area (+/- 5bps), Tap 2045s: T+220bp area (+/- 5bps)

LAUNCH: US$2.5bn 2-part. US$1bn 10yr at T+160bp, US$1.5bn Tap 2045s at T+210bp

PRICED: US$2.5bn 2-part. US$1bn 10yr: 98.596; 3.875%C; 4.042%Y; T+160bp, US$1.5bn Tap 2045s: 97.828; 5%C; 5.146%Y; at T+210bp

BOOK: Peaked at US$9bn


Empresa de Transporte de Pasajeros Metro SA (BMETR), A+/A, announced US$500m 144A/Reg S 30-year sr unsecured notes. Active books: BAML, JPM. UoP: Capex, debt refi, GCP. Settle: T+5.

IPTs: T+250bp area

GUIDANCE: T+220bp area (+/- 5bp)

LAUNCH: US$500m at T+215bp

PRICED: US$500m 5.0% cpn 30yr (1/25/2047). At 97.706, yld 5.151%. T+215bp.



Dominican Republic (DOMREP) set initial price thoughts of low 6% on a new US dollar-denominated 10-year bond, according to two market sources on Wednesday. JP Morgan is bookrunner on the 144A/Reg S issue. Local bank BanReservas is co-manager on the offering. UOP: General purposes of the Government, including partial financing of the 2017 Budget. Settle: 1/25/17.

IPT: Low 6%

GUIDANCE: 6% area

LAUNCH: US$1.2bn at 5.95%

PRICED: US$1.2bn 5.95% 10-year. At 100, 5.95% yld.


Corporacion Andina de Fomento (Aa3/AA-/AA-) has mandated BNP Paribas, Citigroup and HSBC as joint lead managers for a forthcoming euro-denominated benchmark with a five to seven-year maturity.

IPT: MS+low/mid 40s

GUIDANCE: MS+40bp area

LAUNCH: EUR750m (US$797.6m) at MS+40bp

PRICED: EUR750m 2022: 99.975: 0.5%C; 0.505%Y: MS+40bp

BOOK: EUR830m+


Chile announced initial price thoughts of 3.85% area on a peso-denominated 144A/Reg S bond due 2021. The new bond is a tap of a local instrument that priced last year and will be sold in a Euroclearable format to foreign investors, a source familiar with the deal told IFR.

The structure is similar to what has been done in Mexico, where the sovereign and some corporates such as oil company Pemex have sold domestic bonds that can be settled in both Euroclear and locally.

The security carries a 4.5% annual coupon, accruing from the issuance date of September 1 2016. The deal is governed by Chilean law and is listed on the Santiago Stock Exchange. Bookrunners on the new tap are BNP Paribas, Citigroup, Goldman Sachs and JP Morgan. Chile’s local currency ratings are Aa3/AA/AA-.

IPT: 3.85% area

GUIDANCE: 3.75-3.80%

LAUNCH: Ps1trn (US$1.52bn) at 3.80%


BOOK: Ps3trn (US$4.56bn)


The Republic of Argentina, rated B3 by Moody’s and B- by S&P. Argentina has set IPTs of high 5% on a five-year US dollar bond, and low 7% on a 10-year bond, one of the banks managing the deal told IFR. The deal is expected to price as soon as Thursday.

Bookrunners: BBVA, Citigroup, Deutsche Bank, HSBC, JP Morgan and Santander.

Brazilian aerospace company Embraer has picked banks to take it on the road as it looks to market a benchmark-size USD 10-year bond to international investors.

The issuer, rated BBB/BBB-, will be in Boston, London and Los Angeles on January 23, and in New York and Chicago on January 24. Embraer Netherlands Finance BV will act as issuer on the SEC registered deal. BB Securities, JP Morgan and Santander have been mandated to organize investor meetings.

The Central America Bottling Corporation (CBC) will start roadshows on Thursday to market a possible US dollar denominated 144A/RegS offering.

The company may also announce a RegS transaction denominated in Peruvian soles as early as Wednesday. Citigroup and JP Morgan have been mandated to arrange meetings.

It has also launched a cash tender for its outstanding 6.75% 2022 notes. Holders who tender by the expiration date of January 25 will receive US$1,036.55 per US$1,000 in principal.

The company, rated Ba2/BB/BB+, is a beverage producer, distributor and marketer in Central America and the Caribbean, as well as Ecuador and Peru.

Colombian glass company Tecnoglass has revived its bond sale and is meeting investors this week to market a potential five-year bond with a size of up to US$225m, a source told IFR.

The company roadshowed last year but decided not to issue after markets closed in the wake of Donald Trump’s unexpected victory in the US election on November 8.

Management will in New York this week until Thursday, meeting and talking to accounts on the phone. A bond sale is expected to follow depending on market conditions. Bank of America Merrill Lynch and Morgan Stanley have been mandated as joint bookrunners on the deal, which is expected to be rated Ba3/BB-.

The Nasdaq-listed company manufacturers high-spec glass and windows for commercial and residential construction markets.

Brazilian power company Neoenergia is considering a possible US dollar bond debut this year after sending out requests for proposals in late 2016, two market sources told IFR.

Neoenergia Group’s principal shareholders are Banco do Brasil’s pension fund Previ, with a 49.01% stake, and Spain’s Iberdrola with a 39% stake, according to the company’s website.

Paraguay is considering raising up to US$550m in the bond market in March, Reuters quoted Finance Minister Santiago Pena saying.

Inversiones Atlantida, the largest financial group in Honduras, has finished roadshows to market a potential debut US dollar bond through Oppenheimer. Expected ratings are B/B by S&P and Fitch.

Argentina’s Province of Entre Rios has finished roadshows ahead of a possible US dollar bond. Citigroup, HSBC and Santander organized investor meetings. Expected ratings are B-/B by S&P and Fitch. (Reporting by Mike Gambale, Paul Kilby; Editing by Shankar Ramakrishnan)

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