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LATAM CLOSE-Two issuers raise US$1.1bn in LatAm primary
February 6, 2017 / 10:29 PM / in 8 months

LATAM CLOSE-Two issuers raise US$1.1bn in LatAm primary

NEW YORK, Feb 6 (IFR) - Below is a recap of primary issuance activity from Latin America on Monday.

Number of deals priced: 2

Total issuance volume: US$1.1bn

CLISA

Compania Latinoamericana de Infraestructura y Servicios (CLISA) announced a US$100m tap of its 9.5% 2023 bonds. Bookrunners BCP Securities and Santander. The company issued US$200m of the notes in July last year, pricing them at 98.753 to yield 9.75%. Ratings are B-/B-.

IPTs: high 9%

GUIDANCE: 9.80% area

LAUNCH: US$100m tap of 9.5% 2023s at 9.80%

PRICED: US$100m tap of 9.5% 2023: 98.58; 9.80%Y

VALE OVERSEAS

Vale Overseas Limited, Ba2/BBB-/BBB, announced a US$ benchmark SEC registered tap of the 6.25% 8/10/26 (US$1bn outstanding) senior unsecured notes. Joint Bookrunners: BB Securities/Bradesco BBI/J.P.Morgan/MUFG/Santander. The notes are guaranteed by Vale S.A. Use of Proceeds: Refinance 4.375% EUR-denominated notes due 2018 and GCP.

IPT: 5.45% area

GUIDANCE: 5.20%-5.25%

LAUNCH: US$1bn at 5.20% yield

PRICED: US$1bn tap 6.25% 8/10/26. At 107.793, yld 5.20%. Spread: T+278.3bp.

BOOK: US$5bn

NIC: 4bp (vs. 6.25% ‘26s at 5.158%)

COMPS: VALEBZ 6.250% August 10, 2026 at 5.158% YTM (US$108.125)

PIPELINE

The Province of Buenos Aires is readying fixed-income investors meetings as it prepares to market a US dollar bond sale. The borrower was in New York and London on February 6 and will head to New York and Boston on February 7. Ratings are B3/B-. BBVA, BNP Paribas and JP Morgan have been mandated to coordinate the meetings.

Stoneway Capital Corporation, a private company with equity contributed by Siemens AG, formed for the purpose of constructing, owning, and operating four simple-cycle power generating plants in the Buenos Aires region of Argentina, has secured four Power Purchase Agreements through CAMMESA for a 10-year period on each. The company mandated Jefferies as sole global coordinator and Jefferies and Seaport Global as joint-bookrunners to arrange meetings with fixed income investors starting on January 31 for a US$500m US dollar-denominated 144A/Reg S senior secured offering of 10-year maturity.

The roadshow schedule is as follows: Wed Feb 1: New York, Thu Feb 2: New York, Fri Feb 3: Los Angeles, Mon Feb 6: Boston, Tue Feb 7: London, Wed Feb 8: London, Thu Feb 9: Frankfurt/Munich.

Peruvian mortgage bank Fondo Mivivienda has announced a tap of its US dollar 3.5% 2023s and the issue of a new 7-year sol-denominated global depositary note, with pricing expected as soon as Tuesday.

Expected ratings on the 144A/RegS tap are BBB+/BBB+, while GDN will be rated BBB+/A-. Both tranches will be governed by New York law. Citibank is acting as custodian and depositary on the GDN, which is clearable through DTC/Euroclear and Clearstream. Morgan Stanley and Scotiabank are leads on the deal.

IPTs - tap of the 2023s at T+180bp

- 7-year GDN at low 7%

Uruguay will sell US$2.05bn in debt in 2017, up from US$1.7bn last year, the Economy Ministry said in a report, as the country aims to balance its books after posting its sharpest fiscal deficit in years.

The South American country’s financing needs will total US$2.97bn, the report said. The country plans to receive US$550m from multilateral lenders and will tap reserves for US$200m, with the remaining US$170m coming from other sources.

Argentina plans to issue US$1.5bn-$2bn of Swiss franc bonds in two to three issuances this year, one of which will be in the first quarter, Reuters quoted Finance Minister Luis Caputo saying.

Caputo has previously said a total of US$3bn in non-dollar bonds will be issued this year, following the sale of US$7bn in dollar bonds last month.

Brazilian power company Neoenergia is considering a possible US dollar bond debut this year after sending out requests for proposals in late 2016, two market sources told IFR.

Neoenergia Group’s principal shareholders are Banco do Brasil’s pension fund Previ, with a 49.01% stake, and Spain’s Iberdrola with a 39% stake, according to the company’s website.

Paraguay is considering raising up to US$550m in the bond market in March, Reuters quoted Finance Minister Santiago Pena saying.

Inversiones Atlantida, the largest financial group in Honduras, has finished roadshows to market a potential debut US dollar bond through Oppenheimer. Expected ratings are B/B by S&P and Fitch. (Reporting by Mike Gambale and Paul Kilby; Editing by Shankar Ramakrishnan)

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