January 19, 2017 / 10:41 PM / a year ago

LATAM CLOSE-Argentina sells US$7bn in LatAm primary market

* Argentina covers dollar bond needs for year

* AES Argentina hires banks for new US dollar bond

* Moody’s sees slightly higher chance of Mexico credit downgrade

By Mike Gambale

NEW YORK, Jan 19 (IFR) - Below is a recap of primary issuance activity in the LatAm primary market on Thursday:

Number of deals priced: 1

Total issuance volume: US$7bn


Argentina announced a US$ two-part bond sale via joint-bookrunners BBVA, Citigroup, Deutsche Bank, HSBC, JP Morgan and Santander.

IPT: high 5% on five-year, low 7% on 10-year

GUIDANCE: 5-year 5.625-5.75%, 10-year 6.875-7.00%

LAUNCHED: US$7bn two-part.

- US$3.25bn 5-year at 5.625%

- US$3.75bn 10-year at 7.00%

PRICED: US$3.25bn 5-year: par at 5.625%Y / US$3.75bn 10-year: 99.112; 6.875%C; 7.00%Y

BOOK: US$21bn+


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.

Power generation company AES Argentina has hired Credit Suisse, Itau BBA and JP Morgan to arrange a series of investor meetings ahead of a potential US dollar-denominated bond offering.

The meetings will take place in Santiago and Buenos Aires on Friday, New York and Boston on January 23, and Los Angeles and London on January 24. The roadshow will wrap up with investor calls in New York on January 25.

A US dollar-denominated 144A/Reg S benchmark senior unsecured bond offering with intermediate maturity is expected to follow, subject to market conditions.

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

The company will be in London and Lima on January 20, and will head next week to Boston and Los Angeles on January 23 and New York on January 24.

CBC may also announce a RegS transaction denominated in Peruvian soles. 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 was 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 and Paul Kilby; Editing by Shankar Ramakrishnan)

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