NEW YORK, April 10 (IFR) - Latin American credits remained well bid Friday, driven primarily by positive sentiment toward Brazilian oil company Petrobras and a healthy crossover bid for high-yielding credits.
“The market is trading pretty strong, especially in the Brazilian context,” said one trading desk analyst in New York.
He attributed the positive tone to reports that Petrobras will soon publish audited financial statements and that it plans to sell a large pre-salt exploration area as part of its asset disposal program.
The short end of the Petrobras curve was reaping most of the benefits, ending the day some 10bp-15bp tighter. That compares with a mere 5bp tightening for the belly and the long end of the curve.
Among high-yield credits, Schahin’s 2022s were little changed on the day at around 47-48, off its Tuesday’s low of 39-41 but still more than 10 points below last week’s levels in the low 60s.
A positive tone in the US high-yield market this week was also underpinning demand for some high-yield names across Latin America.
“(This week’s rally) has been driven largely by what is going on in Brazil with Petrobras, but the tone in high-yield has also been helpful,” said the analyst, who saw good demand for names like Brazilian beef producer JBS, Mexican cement name Cemex and Caribbean telco Digicel.
Among sovereigns, Mexico’s new euro-denominated Century bond leaped by at least another point and a half on its second day of trading to end the week at 102.75-103.25, or nearly eight points higher compared to its 95.322 reoffer price.
ACI Airport Sudamerica, the controlling shareholder of the concessionaire of Uruguay’s Carrasco airport, has mandated BAML and Nomura to arrange investor meetings.
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.
ACI Airport Sudamerica is controlled by Corporacion America Airports, which has 52 airports under management.
BBVA Colombia has hired BBVA Securities and Morgan Stanley to arrange investor meetings ahead of a potential US dollar-denominated Tier 2 subordinated bond offering.
The meetings will continue in London on April 13, Boston on April 14 and New York on April 15.
Pacific Rubiales, the largest private oil producer in Colombia, has kicked investor meetings through Bank of America Merrill Lynch, Citigroup and HSBC.
Next week the company will head to 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; Edited by Paul Kilby