23 de marzo de 2016 / 20:58 / en 2 años

LATAM CLOSE-Paraguay raises US$600m in primary market

* Paraguay trade only deal in LatAm this week so far

* Paraguay ups bond offering to US$600m

* Paraguay book 5 times oversubscribed

* Paraguay price progression 37.5bp

* No other deals expected in primary this week

By Mike Gambale

NEW YORK, March 23 (IFR) - Below is a recap of primary issuance in the LatAm primary market on Wednesday:

Number of deals priced: 1

Total issuance volume: US$600m

REPUBLIC OF PARAGUAY

Republic of Paraguay (PARGUY), Ba1/BB/BB, announced a US$500m 10-year senior unsecured notes. The joint bookrunners are Bank of America and Itau. UOP: Financing of infrastructure and capital expenditures and refinancing a portion of its outstanding debt. Settlement: T+5.

IPT: 5.375% area

PRICE GUIDANCE: 5.125% area (+/- 12.5bp)

LAUNCH: US$600m (upsized from US$500m) at 5%

PRICED: US$600m. Cpn 5.00%. Due 4/15/2026. Ip US$99.997. Yld 5.00%. T+312.7bp.

BOOK: Just over US$3bn

LATAM PIPELINE:

Argentina named BBVA, Citigroup, Deutsche Bank, HSBC, JP Morgan, Santander and UBS as joint bookrunners for a possible bond sale, a source familiar with the matter told IFR on Tuesday.

The timing and currency of the bond offering are not yet certain but the deal could come to market in early April, the source said.

Expectations of a deal have been building since Argentina sealed an agreement with holdout creditors three weeks ago. (Full Story)

Barring any objections from Congress, the republic is likely to try to issue up to US$15bn of bonds in April in an effort to pay litigant investors.

Latin American development bank Corporacion Andina de Fomento has mandated ANZ and Deutsche Bank for a five-year Kangaroo bond offering. CAF last visited the Australian market on September 3 2015 for a A$50m (A$38m) tap of its 4.5% June 5 2025 line, which lifted the issue size to A$325m.

The reopening priced at 101.731 to yield at 4.28%, equivalent to 135bp over asset swaps and 158bp wide of the April 2025 Australian Commonwealth government bond. CAF, rated Aa3/AA-/AA-, issued its inaugural A$275m 4.25% three-year Kangaroo on August 21 2013 before reopening the line six days later for a A$75m tap. The bond matures in six months. On October 30 2013, CAF sold a A$225m 6.25% 10-year bond.

Raizen Energy launched a cash tender offer on its 7% due 2017 notes, according to a regulatory statement. The Brazilian company plans to buy up to US$200m of the outstanding US$400m notes. Raizen is seeking to buy the bonds back at 100.25, with a US$30 early bird incentive added. The early deadline is March 4, with the final deadline on March 18. Citigroup, Credit Agricole and JP Morgan are the dealer arrangers.

Colombia has mandated BBVA, Goldman Sachs and JP Morgan to organize meeting with fixed-income investors in Europe to discuss opportunities in the capital markets this year.

Finance Minister Mauricio Cardenas will attend the meetings, which start on March 8 in London. Discussions continue in Germany on March 9, the Netherlands on March 10 and in London again on March 11. Ratings are Baa2/BBB/BBB (stable/negative/stable) by Moody‘s, S&P and Fitch.

The board of Argentine real estate developer IRSA has approved the issuance of up to US$470m of debt, according to a filing with local regulators.

The Province of Mendoza is looking to raise US$300m in both the local and international markets to refinance debt, according to local reports.

Neuquen province is contemplating a bond issue.

The United Mexican States has filed an up to US$10bn debt shelf with the US Securities and Exchange Commission. Proceeds will be used for general purposes, including refinancing and the repurchase of debt.

Argentine E&P company Medanito has wrapped up roadshows ahead of a possible transaction through Itau and UBS. Expected rating is CCC+ by Fitch.

Concesion Pacifico Tres, a toll-road concession in Colombia, wrapped up a roadshow through Goldman Sachs. The company is looking to raise up to US$272m of bonds, according to Fitch, which has rated the senior secured bonds BBB-.

Pacifico Tres is jointly owned by Construcciones El Condor SA, Mario Alberto Huertas Cotes, and Constructora MECO SA. Banca de Inversion is acting as its financial advisor.

Argentina utility Pampa Energia’s shareholders have approved a US$500m debt program.

Uruguay plans to raise up to US$1.5bn in bonds this year.

Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA), rated A- and A by S&P and Fitch, respectively, has mandated BBVA, Credit Suisse and Deutsche Bank to arrange a series of fixed income investor meetings in Europe.

The investor meetings are expected to take place in the week commencing March 7 2016. A euro-denominated bond transaction may follow subject to market conditions. (Reporting By Michael Gambale; editing by Shankar Ramakrishnan)

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