* Brazil, Argentina push for closer trade with Mexico in Trump Era
* Argentina’s bank kept its monetary policy unchanged at 24.75%
* Worst seems to be over in 2017 for Mex peso: FX strategists
By Mike Gambale
NEW YORK, Feb 7 (IFR) - Below is a recap of issuance activity in the Latin American primary markets on Tuesday.
Number of deals priced: 1
Total issuance volume: US$150m, PEN1.5bn
Peruvian mortgage bank Fondo Mivivienda announced a tap of its US dollar 3.5% 2023s and the issue of a new 7-year sol-denominated global depositary note.
Expected ratings on the 144A/RegS tap are BBB+/BBB+, while GDN will be rated BBB+/A-. Both tranches will be governed by New York law. Citibank is acting as custodian and depositary on the GDN, which is clearable through DTC/Euroclear and Clearstream. Morgan Stanley and Scotiabank are leads on the deal.
IPTs: Tap at T+180bp, 7-year GDN at low 7%
PRICE GUIDANCE: US$ tap of 23s: T+175bp area (+/- 5); PEN: 7.0% area (+/- 12.5bps)
LAUNCH: US$150m tap of 23s at T+170bp; PEN1.5bn at 7.0%
PRICED: US$150m tap of 3.5% 1/31/23. At 99.802, yld 3.537%. T+170bp.
PEN1.5bn 7yr (2/14/24) at 7.0%
BOOKS: tap ‘23s US$700m, 7-year US$2.3bn
The Province of Buenos Aires is readying fixed-income investor meetings as it prepares to market a US dollar bond sale. The borrower was in New York and London on February 6 and will head to New York and Boston on February 7. Ratings are B3/B-. BBVA, BNP Paribas and JP Morgan have been mandated to coordinate the meetings.
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 roadshow schedule is 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.
Uruguay will sell US$2.05bn in debt in 2017, up from US$1.7bn last year, the Economy Ministry said in a report, as the country aims to balance its books after posting its sharpest fiscal deficit in years.
The South American country’s financing needs will total US$2.97bn, the report said. The country plans to receive US$550m from multilateral lenders and will tap reserves for US$200m, with the remaining US$170m coming from other sources.
Argentina plans to issue US$1.5bn-$2bn of Swiss franc bonds in two to three issuances this year, one of which will be in the first quarter, Reuters quoted Finance Minister Luis Caputo saying.
Caputo has previously said a total of US$3bn in non-dollar bonds will be issued this year, following the sale of US$7bn in dollar bonds last month.
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 and Paul Kilby; Editing by Shankar Ramakrishnan)