NEW YORK, April 8 (IFR) - Latin American credit markets ended Wednesday’s session on a higher note with several names in Brazil benefiting from a strengthening Real even as the US dollar gained ground against other major currencies.
“The lack of negative news had everyone buying today,” said a corporate bond trader in New York, who argued the rally was probably one of the best enjoyed by Brazil so far this year.
Bonds of state-run oil company Petrobras were ending the session some 20bp tighter in spreads, with its 2024s last quoted at 475bp-465bp and its 2044s at 480bp-470bp.
Brazilian financials also continued to reap gains, with notes issued by development bank BNDES ending the session one to two points higher in price.
A 9% perpetual note issued by Banco do Brasil - often seen as a bellwether for financials in the country - was last quoted at 92.25-92.75, or between half and three quarters of a point higher on the day, said a second New York-based trader.
Elsewhere in the region, Chilean retailer Cencosud also saw good demand for its paper, with its long-dated 2045s ending the session at around 97.75, or three quarters of a point higher.
In primary markets, Mexico broke a one-week lull in activity for Latin American issuers with a new EUR1.5bn century bond that attracted around EUR6.25bn in orders.
The issue, which carries a coupon of 4% and priced at 95.322 to yield 4.2%, was bid as much as a full point higher in the gray market on Wednesday afternoon, according to the second trader.
Indeed, the pipeline for corporate deals has begun to grow with BBVA Colombia and ACI Airport Sudamerica - which controls the concessionaire of Montevideo’s Carrasco International Airport - both announcing investor meetings ahead of potential new bond issues.
ACI Airport Sudamerica, the controlling shareholder of the concessionaire of Uruguay’s Carrasco International Airport in Montevideo, has mandated Bank of America Merrill Lynch and Nomura to arrange a series of fixed-income investor meetings in the US, Europe and Latin America ahead of a potential senior secured bond issue.
The meetings will take place in New York and Santiago on April 13, Boston and New York on April 14 and London and Los Angeles on April 15. A potential senior secured 144A/Reg S transaction backed by future dividends received in connection to a long-term airport concession contract may follow, subject to market conditions.
ACI Airport Sudamerica is controlled by Corporacion America Airports, a global operator with 52 airports under management.
BBVA Colombia has hired BBVA Securities and Morgan Stanley to arrange a series of fixed-income investor meetings in the US and London ahead of a potential US dollar-denominated Tier 2 subordinated bond offering.
The meetings will take place in Los Angeles on April 10, London on April 13, Boston on April 14 and New York on April 15.
Pacific Rubiales, the largest private oil producer in Colombia, kicked off global investor meetings today through Bank of America Merrill Lynch, Citigroup and HSBC.
The meetings will take place in London on April 9, Switzerland on April 10, New York on April 13 and 14, Boston on April 15, Santiago on April 30, Los Angeles on May 4 and Miami on May 6. (Reporting by Davide Scigliuzzo; Editing by Paul Kilby)