NEW YORK, April 14 (IFR) - Latin American credits began Tuesday mixed, with the Brazilian sovereign and Petrobras outperforming on hopes that the oil giant will publish audited financial statements this month.
Brazil’s credit default swaps were quoted some 17bp tighter in early trading at 235bp mid-market, while cash bonds were up by one point, slightly underperforming, according to a sovereign bond trader in New York.
Spreads on Petrobras notes meanwhile were as much as 30bp tighter, underpinned by strong demand from retail accounts. The company’s 2024s were spotted at 448bp-440bp, while the 2044s were quoted at 458bp-450bp.
But other sovereign credits in the region seemed to be struggling to catch up with the rally in US Treasuries, as the yield on the 10-year note tightened 7bp to 1.86%.
High-yielding Venezuela and Argentina saw their curves weaken slightly, as investors sought to take profits after a strong rally in recent days.
Venezuela’s 2022s were quoted at the open at 51.50-52.50, while PDVSA’s 8.5% 2017s were spotted at 75.50-76.00.
“Some prices are reaching the levels of early December, which we view as difficult to surpass without a catalyst,” said Jorge Piedrahita, CEO of New York-based broker Torino Capital.
In primary markets, the overall firm backdrop has encouraged borrowers to press ahead with opportunistic new bond offerings.
Mexico’s state-run oil company Pemex is set to raise EUR2.25bn through a dual-tranche offering via Barclays, BNP Paribas, Deutsche Bank and Santander.
The company has launched a EUR1bn seven-year tranche at 165bp over mid-swaps and a EUR1.25bn 12-year note at 225bp over mid-swaps.
Panama’s Global Bank has announced a reopening of its US dollar-denominated 5.125% 2019s, with initial price thoughts of 4.375%-4.5%.
Citigroup and Deutsche Bank are bookrunners on the transaction, while Commerzbank and Mizuho are co-managers.
ACI Airport Sudamerica, controlling shareholder of the concessionaire of Uruguay’s Carrasco airport, has mandated BAML and Nomura to arrange investor meetings.
The meetings continue today in Boston and New York and in London and Los Angeles tomorrow. A potential senior secured 144A/Reg S deal backed by future dividends from 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 continue in Boston today and New York tomorrow.
Pacific Rubiales, the largest private oil producer in Colombia, has kicked off investor meetings through Bank of America Merrill Lynch, Citigroup and HSBC.
The meetings continue in New York today and Boston tomorrow; Santiago on April 30; Los Angeles on May 4; and Miami on May 6.
Reporting by Davide Scigliuzzo; Editing by Marc Carnegie