February 1, 2017 / 9:36 PM / a year ago

LATAM CLOSE-One issuer raises US$350m in LatAm primary market

* Entre Rios raises funding in international bond market

* Brazilian railroad operator Rumo sets IPTs on seven-year offer

* Banco Supervielle readies local currency trade

* Fitch downgrades El Salvador to B from B+, outlook negative

By Mike Gambale

NEW YORK, Feb 1 (IFR) - Below is a recap of primary issuance activity in the LatAm primary market on Wednesday:

Number of deals priced: 1

Total issuance volume: US$350m


Argentina’s Province of Entre Rios announced a will-not-grow US$350m 2025 bond with a seven-year average life. Citigroup, HSBC and Santander are acting as leads on the deal, which is expected to be rated B-/B.

IPT: 9% area

LAUNCH: US$350m 2025 bond at 9%

PRICED: US$350m 2025 bond: 98.726; 8.75%C; 9%Y

BOOK: US$800m


Brazilian railroad operator Rumo has set initial price thoughts of high 7% on a new US dollar seven-year non-call four bond, with pricing expected as soon as Thursday.

The senior unsecured 144A/RegS bond is expected to be rated BB-/BB-. Rumo SA and America Latina Logistica Malha Norte (ALL) are acting as guarantors, while Rumo Luxembourg will be the issuer.

Proceeds are being used to repay short-term debt and for general corporate purposes. Bookrunners are BB Securities, Bradesco, BTG Pactual, Itau, Morgan Stanley and Santander.

Banco Supervielle, the fifth largest Argentine domestically-owned private bank in terms of assets, has set initial price thoughts of Badlar plus 450bp area on a US$300m equivalent ARS denominated 3.5-year bond.

Pricing is expected as soon as Thursday on the 144A/RegS bond, which has an average life of three quarters of a year and a coupon floor of 18%. Expected ratings are B3/B by Moody’s and Fitch. Credit Suisse and Santander are acting as leads.

Sigma Alimentos, a multinational food company with market positions in Europe, the US and Latin America, and sole-owner of Campofrio Food Group, has hired BNP Paribas and JP Morgan as active joint bookrunners and MUFG and Rabobank as Passive Joint Bookrunners to arrange a series of fixed income investor meetings in Europe, which ended on Wednesday. A debut euro-denominated seven-year fixed-rate benchmark offering, expected to be rated Baa3 by Moody’s, BBB by S&P and BBB by Fitch, is expected to follow.

Stoneway Capital Corporation, a private company with equity contributed by Siemens AG, formed for the purpose of constructing, owning, and operating four simple-cycle power generating plants in the Buenos Aires region of Argentina, has secured four Power Purchase Agreements through CAMMESA for a 10-year period on each. The company mandated Jefferies as sole global coordinator and Jefferies and Seaport Global as joint-bookrunners to arrange meetings with fixed income investors starting on January 31 for a US$500m US dollar-denominated 144A/Reg S senior secured offering of 10-year maturity.

The schedule will be as follows: Wed Feb 1: New York, Thu Feb 2: New York, Fri Feb 3: Los Angeles, Mon Feb 6: Boston, Tue Feb 7: London, Wed Feb 8: London, Thu Feb 9: Frankfurt/Munich.

Peruvian mortgage bank Fondo Mivivienda started roadshows this week to market a possible sol and/or dollar denominated bond issue.

The company was in Boston on Wednesday and will head to Los Angeles on Thursday and New York on Friday. Expected ratings are BBB+/BBB+ by S&P and Fitch. Morgan Stanley and Scotiabank have been mandated to organize the fixed-income investor meetings.

Fondo Mivivienda is controlled by the government of Peru and is the country’s leading mortgage financing developer and promoter.

Compania Latinoamericana de Infraestructura y Servicios (CLISA) kicked off roadshows this week to market a tap of its 9.5% 2023s through BCP Securities and Santander.

The Argentine infrastructure firm will be in New York on February 1 and 2 and in Boston on February 3. The company issued US$200m of the notes in July last year, pricing them at 98.753 to yield 9.75%. BCP Securities and Santander also acted as leads on that occasion. Ratings are B-/B-.

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. (Reporting by Mike Gambale; editing by Shankar Ramakrishnan)

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