September 19, 2016 / 9:27 PM / 2 years ago

LATAM CLOSE-No deals price in LatAm primary market

* PDVSA 2017s slip on disappointing debt swap terms
    * Municipality of Cordoba to start roadshows
    * Argentina will not need more than US$15bn in debt next year: FinMin
    * CAF readies dollar trade

    By Mike Gambale and Paul Kilby
    NEW YORK, Sept 19 (IFR) - No deals priced in the LatAm primary market on
    Here is a snapshot of LatAm sovereign spreads:
      SOVEREIGN        9/16   9/15  9/14  1D   10D   YTD    2015/16 HIGH
 ARGENTINA              448   449   459   -1    17    -           -
 BARBADOS               641   640   642    1   -19    37    659 (2/11/16)
 BRAZIL                 316   307   308    9    34   -170   542 (2/11/16)
 CHILE                  78     74    73    4    16    -8    143 (2/11/16)
 COLOMBIA               230   223   223    7    20   -59    412 (2/11/16)
 COSTA RICA             395   395   395    0    16   -122   587 (2/11/16)
 DOMINICAN REP          366   362   357    4    22   -49    542 (2/11/16)
 ECUADOR                906   909   903   -3    16   -409  1765 (2/11/16)
 EL SALVADOR            489   482   481    7    24   -151   840 (2/11/16)
 GUATEMALA              250   249   252    1    16   -52    385 (2/11/16)
 JAMAICA                379   380   380   -1   -14   -70    519 (2/11/15)
 MEXICO                 185   176   179    9    22    -9    278 (2/11/16)
 PANAMA                 172   166   167    6    19   -34    272 (2/11/16)
 PERU                   166   162   159    4    11   -65    291 (2/10/16)
 TRINIDAD & TOBAGO      209   209   210    0    -1   111    173 (1/15/15)
 URUGUAY                221   215   215    6    7    -47    344 (2/11/16)
 VENEZUELA             2458   2434  2431  24   -18   -334  3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    One-day change most sovereigns wider
    Ten-day trend 13 out of 17 sovereigns wider
    YTD: Barbados wider by 37bp
    YTD: Ecuador tighter by 409bp
    YTD: Panama tighter by 34bp
    Latin American development bank Corporacion Andina de Fomento (CAF) has set
initial price thoughts of MS+105bp area on a new five-year bond ahead of
expected pricing on Tuesday.

The Global SEC registered bond will mature on September 27 2021. Ratings on the
senior unsecured issue are expected to be Aa3/AA-/AA-. The bonds will be listed
on the London Stock Exchange and governed by New York law.

Proceeds are going toward funding lending operations. Barclays, Bank of America
Merrill Lynch, Citigroup and HSBC are acting as bookrunners.     
Argentina's Municipality of Cordoba will start roadshows this week to market a
possible US dollar bond. The borrower will be in Switzerland, Boston and
Santiago on Tuesday, and will wrap up meetings in London and New York on

The proposed issue has received B3/B ratings from Moody's and Fitch. The
municipality is looking to issue up to US$150m through a fixed-rate amortizing
bond, according to the rating agencies. Santander will act as lead on the
Mexican financing and leasing company Unifin started international roadshows
this week in an effort to market a new US dollar denominated bond.  The borrower
was in Switzerland and Los Angeles on Monday, and will head to London and Boston
on September 20 and New York on September 21. Expected ratings are BB/BB by S&P
and Fitch. Citigroup, Credit Suisse and UBS have been mandated as joint

The Republic of Peru has started roadshows in the US and Europe to market a
local currency bond sale to international investors. Fixed-income investor
meetings will take place between September 19 and 23, stopping in New York, Los
Angeles, Boston, London and Frankfurt. BBVA, Bank of America Merrill Lynch and
HSBC have been mandated to arrange the meetings. Ratings are A3/BBB+/BBB+.

Ouro Verde Locacao e Servicio is meeting investors to market a possible US
dollar 144A/RegS bond. The company was in Los Angeles on Monday and will head to
Boston on September 20 before wrapping up in New York on September 21.  The
Brazilian company, rated BB-/BB-, leases heavy equipment, machinery and fleets
of light vehicles. Bradesco, Santander and Scotiabank are organizing roadshows.

Mexico's Banco Inbursa has finished marketing a new US dollar 10-year senior
unsecured bond, which is expected to be rated BBB+/BBB+. Bank of America Merrill
Lynch, Citigroup and Credit Suisse have been mandated as leads.

JSL, a logistics services provider operating in Brazil, has wrapped up roadshows
on a possible 144A/Reg S senior unsecured US dollar bond. BB Securities,
Bradesco BBI, Morgan Stanley and Santander have been mandated on the deal.
Ratings are BB/BB by S&P and Fitch.

Bankers are marketing a Green bond to help fund the construction and operation
of Mexico City's new international airport. The bond, which is being issued
through a special purpose trust, is expected to be the first of up to US$6bn of
such trades, allowing the borrower to create an extensive curve over time.
Bondholders will be paid through cash flows collected from passenger charges
from the current airport and the new Mexico City International Airport (NAICM)
that will start operations in 2020.  
The issuer wrapped up roadshows in New York on Monday. Citigroup, HSBC and JP
Morgan are acting as global coordinators, while BBVA and Santander are coming in
as joint bookrunners. Expected ratings are Baa1/BBB+/BBB+.

Brazil's BRF GmbH, a wholly owned subsidiary of BRF SA, (rated Ba1/BBB/BBB) has
finished roadshows organized by BB Securities, Bradesco, Itau, JP Morgan and
A US dollar-denominated 144A/Reg S senior unsecured bond issue with intermediate
to long maturity is expected to follow, subject to market conditions.

 (Reporting by Mike Gambale)
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