September 27, 2016 / 8:37 PM / 2 years ago

LATAM CLOSE-Ecuador raises US$1bn in 2022 tap

* Ecuador returns to bond market after two month hiatus

* Venezuela PDVSA sweetens bond swap terms

* Jose Cuervo aims for US$1bn IPO

* Brazil’s Gafisa hires banks for IPO

By Mike Gambale and Paul Kilby

NEW YORK, Sept 27 (IFR) - Below is a recap of primary issuance activity in the LatAm market on Tuesday:

Number of deals priced: 1

Total issuance: US$1bn


The Republic of Ecuador, rated Nr/B/B (-/s/n), announced a US$ benchmark tap of its 10.75% 3/28/22 senior unsecured notes via sole-bookrunner Citigroup. 144a/RegS. Settlement date 9/29/16.

IPT 10.75% area.

LAUNCH: US$1bn tap of 2022s at 10.75%

PRICED: US$1bn tap of 2022: par; 10.75%C - Settlement: Sept 30 2016; Maturity March 28 2022


Brazil’s Votorantim Cimentos is readying a US$500m will-not-grow 10-year bond that is being issued through St Mary’s Cement Inc. (Canada).

Pricing on the long 10-year bullet bond that matures in January 2027 is expected this week. Expected ratings are Ba2/BB+/BBB-. Votorantim Cement North America Inc. and Votorantim Cimentos SA are acting as guarantors.

Proceeds are going to fund a tender and for general corporate purposes. Bookrunners are Banco Votorantim, Bank of America Merrill Lynch, Citigroup, HSBC, JP Morgan and Santander

IPT: 6.25% area

Mexican development bank Nafin starts roadshows this week to market a potential US dollar bond through Bank of America Merrill Lynch and HSBC. The borrower will split into three teams, visiting London, Boston, New York and Los Angeles on Tuesday and Wednesday. The issuer is rated A3/BBB+/BBB+.

Mexican retailer Liverpool has selected banks to take it on roadshows to market a possible 10-year bond to international investors.

The borrower was in Boston and New York on Tuesday and will head to New York again on September 28. Citigroup, Credit Suisse and JP Morgan have been mandated on the deal. (Corrects name of lead to JP Morgan which is also coordinating roadshows.)

Mexican bank Banorte is marketing a Tier 2 Basel III compliant bond to international investors.

The borrower wrapped up meetings in New York and Boston on Tuesday. The bank is eyeing either a 15NC10 or a 10NC5 bond. Ratings on the sub debt are expected to be Ba1/BB+, while the bank itself is rated A3/BBB+/BBB+.

Bank of America Merrill Lynch, JP Morgan and Morgan Stanley have been mandated on the deal.

The Republic of Argentina is planning a dual-tranche, benchmark sized euro denominated bond issue, according to a lead.

The sovereign has mandated BBVA, BNP Paribas and Credit Suisse to arrange a series of fixed income investors meetings in Europe commencing on September 26.

The issuer is rated B3/B-.

The Republic of Peru has finished roadshows in the US and Europe to market a local currency bond sale to international investors. BBVA, Bank of America Merrill Lynch and HSBC have been mandated to arrange the meetings. Ratings are A3/BBB+/BBB+.

Brazilian corporate Ultrapar is marketing a possible RegS senior unsecured US dollar bond.

The company representatives were in Los Angeles and New York on Tuesday will head to New York again on September 28. BB Securities, Bradesco BBI, Morgan Stanley and Santander have been mandated to organize investor meetings. Ratings are Ba1/BB+.

Ultrapar is involved in specialized distribution and retail, specialty chemicals and liquid bulk storage.

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.

Ouro Verde Locacao e Servicio, rated BB-/BB-, announced a US$300m 5NC3. The Brazilian company leases heavy equipment, machinery and fleets of light vehicles. Bradesco, Santander and Scotiabank are acting as joint bookrunners. The senior unsecured bond is expected to be listed in Luxembourg.

IPTS: low-to-mid 8% (Reporting by Mike Gambale and Paul Kilby; Editing by Shankar Ramakrishnan)

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