NEW YORK, April 9 (IFR) - Latin American credit markets were enjoying a strong bid Thursday as higher crude prices provide support while investors grow more comfortable with Brazilian risk.
“The market is very firm,” a US-based investor told IFR. “There are not a lot of grenades out there to trip the market up and a lot of the recent news out of Brazil has been supportive.”
There are heightened expectations that Brazil’s Petrobras will soon release audited results. Local paper Folha de S.Paulo said Petrobras will publish financials before April 20.
The company’s 2024s were being quoted 465bp-440bp Thursday morning, marking another 20bp tightening on the day.
It has been similar story for the sovereign’s 2025s, which were being quoted at 100.95-101.15 after a good seven-point rally since mid-March.
Brazil’s sovereign credit default swaps have also tightened about 15bp this week and some 60bp since mid-March.
“I guess people are getting more comfortable with Brazil,” said Klaus Spielkamp, head of fixed-income sales at Bulltick.
Mexican names are also in demand, with the sovereign’s new euro-denominated Century bond catching a strong bid after six points today.
At 101.50-101.50, the bond’s price has come off its high, but it is still well above the 95.322 re-offer price.
The bond, the first ever Century instrument denominated in euros from an EM sovereign, priced yesterday at a yield of 4.20% on the back of some EUR6.3bn of demand.
Mexico’s state-owned oil company Pemex has also seen its bond prices climb as the country moves to sell off oil blocks amid strong interest from international players.
Pemex’s 6.625% perps have leapt about two points since mid-March to be quoted this morning at 101.50-102.50, up about 20 cents on the day.
“It is surprising that the bond has been trading up as it has a call in September (at par),” said Spielkamp.
ACI Airport Sudamerica, the controlling shareholder of the concessionaire of Uruguay’s Carrasco airport, has mandated Bank of America Merrill Lynch and Nomura to arrange investor meetings.
The meetings will take place in New York and Santiago on April 13, 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 will take place in Los Angeles on April 10, London on April 13, 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.
The company is in London today, and will head to Switzerland on April 10, New York on April 13 and 14, Boston on April 15, Santiago on April 30, Los Angeles on May 4 and Miami on May 6. (Reporting by Paul Kilby; Editing by Marc Carnegie)