NEW YORK, April 13 (IFR) - Latin American credits were ending the day mixed but largely well bid, as the region’s debt prices drifted higher alongside oil and US Treasury markets.
In the corporate space, Brazilian miner Vale was among the underperformers, with the company’s bonds widening by as much as 10bp after S&P said it might downgrade the credit and other global miners over the next two to three weeks.
Bonds issued by Brazilian state-run oil company Petrobras were ending the session unchanged as investors took a breather after last week’s strong rally and looked to lock in profits.
This comes amid a local report that Petrobras is planning to sell a stake in petrochemicals firm Braskem for about BRL2.8bn as part of a broader asset sale strategy. The news did little to move Braskem’s bonds, which were closing unchanged, albeit after a day of good two-way flows.
Power utility Eletrobras, meanwhile, saw its curve inch higher by as much as a point, catching up with earlier gains made by Petrobras after the spread differential between the two state-controlled companies had reached recent wides.
Eletrobras’s 2019s, for example, were ending the session at 100, up from around 93 less than two weeks ago.
Some notes in the high-yield space were also better bid, with construction company Odebrecht’s bonds closing about a point higher, with 2025s and 2042s quoted at 87-88 and 88.0-88.5 respectively.
Prices on the 2022 drillship bond issued by Schahin, meanwhile, appeared to have stabilized after posting heavy losses at the beginning of last week, and were ending the session at around 46 mid-market.
Elsewhere in the region, bonds issued by Mexican telco America Movil and Chilean miner Codelco also saw good two-way trading and were both ending about 2bp tighter in spread terms.
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 started today in New York and Santiago, and will continue in 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 continued in London today, and will head to 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.
This week the company continue in New York on Tuesday before heading to 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)