Latam Primary Market Showing Signs of Life

The Latam primary markets were showing signs of life on Thursday with Chilean utility Guacolda out with IPTs of Treasuries plus 300bp area on a will-not-grow US$500m 10-year bond.

 

Argentine oil company YPF is also out with guidance of 8.75% area(+/- 1/8) on an up to US$1.5bn 10-year.

 

The deals are being marketed on a day when sentiment was lifted by Brazilian oil company Petrobras which avoided a covenant breach with the release of its long-awaited audited results for 2014.

 

Petrobras's curve tightened by up to 50bp this morning with the 2024s being quoted at 410bp, according to a New York based trader.

 

The company reported non-cash impairment cost of R$44.3bn plus an additional R$6.19bn in corruption related losses, not to mention a jump in net leverage to 4.77x.

 

Banco Latinoamericano de Comercio Exterior (Bladex), a Panama-based trade bank, is poised to kick off fixed-income investor meetings through Bank of America Merrill Lynch and Citigroup.

 

The borrower, rated Baa2/BBB/BBB+, will be in London and Los Angeles on April 27, in Switzerland and Boston on April 28 and in New York and Philadelphia on April 29.

 

Banco de los Trabajadores (Bantrab) will hit the road next week to market a possible subordinated debt offering through Deutsche Bank.

 

The Guatemalan bank, which focuses on payroll-lending to public sector employees, is approaching investors with an up to US$100m 10-year subordinated loan participation notes, which are being recognized as Tier 2 capital by local regulators.

 

It was in Switzerland today and will head to New York on the 23rd and Miami on the 24th. The bank carries corporate ratings of Ba3/BB- by Moody's (MCO) and Fitch.

 

ACI Airport Sudamerica, controlling shareholder of the concessionaire of Uruguay's Carrasco airport, mandated Bank of America Merrill Lynch and Nomura for investor meetings that concluded last week in London and Los Angeles.

 

A potential senior secured 144A/Reg S deal backed by future dividends from a long-term airport concession contract may follow.

 

Pacific Rubiales, the largest private oil producer in Colombia, has kicked off investor meetings through Bank of America Merrill Lynch, Citigroup and HSBC. The company heads to Santiago on April 30, Los Angeles on May 4 and Miami on May 6.