* Investors take shine to Province of BA despite supply concerns
* Venezuelan central bank eyes US$1bn ‘repo’ deal with Nomura
* Ex public credit head seen as likely choice to head Banxico
By Mike Gambale
NEW YORK, Feb 8 (IFR) - Below is a recap of issuance activity in the Latin American primary markets on Wednesday.
Number of deals priced: 2
Total issuance volume: E100m, US$1.5bn
ContourGlobal Power Holdings announced a €50m tap of its 5.125% €600m 2021 senior secured notes. Goldman Sachs acted as global coordinator and bookrunner. BNP Paribas was also a bookrunner, while Credit Suisse came in as a co-manager.Rated BB (S&P) / BB- (Fitch). Proceeds: GCP. Due Jun 15 202, 144A / RegS, min Denominations €100,000 x €1,000. Listed on Channel Islands Securities Exchange Authority Limited, New York Law.The developer, operator and owner of electric power businesses has operations in Latin America, Africa and Europe.
GUIDANCE: EUR50m tap of 5.125% 2021 at 105.375
LAUNCH: EUR100m tap of 5.125% 2021 at 105.75
PRICED: EUR100m tap of 5.125% 2021 at 105.75; 3.676%Y
The Province of Buenos Aires announced a two-part bond sale comprising a new 2023 bond and a tap of its existing 2027. The 2023 bond amortizes in three equal parts in 2021, 2022 and 2023 and has an average life of five years, while the 2027 amortizes in 2025, 2026 and 2027 and has an average life of 9.3 years. Ratings are B3/B-. BBVA, BNP Paribas and JP Morgan are acting as leads.
IPTs: 2023: mid to high 6%; 2027 tap: 8.2% area
GUIDANCE: Province of BA: 2023 at 6.60%-6.65%; 2027 tap at 8.10%-8.15% (Will price in range)
LAUNCH: US$750m 2023 at 6.60%; US$750m tap of 2027 at 8.10%
PRICED: US$750m 2023: 99.581; 6.5%C; 6.60%Y; US$750m tap of 2027: 98.532; 7.875%C; 8.10%Y
BOOK: About US$1.9bn on 2023, US$2.3bn on tap of 2027
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)