* State of Rio de Janeiro defaults on IADB debt
* Votorantim hires banks for USD benchmark
* Brazil's inflation likely near 9% in mid-Sept
By Mike Gambale
NEW YORK, Sept 20 (IFR) - Below is a recap of primary
issuance activity in the LatAm market on Tuesday:
Number of deals priced: 1
Total issuance: US$1bn
Latin American development bank Corporacion Andina de
Fomento (CAF) is out with a new five-year bond. The Global SEC
registered bond will mature on September 27 2021. Ratings on
senior unsecured issue: Expected 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.
IPTs: MS+105bp area
LAUNCH: US$1bn five-year at MS+95bp
PRICED: US$1bn 5-year: 99.811; 2.125%C; 2.165%Y; MS+95bp
BOOK: About US$1.3bn
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 Wednesday.
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 transaction.
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 bookrunners.
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
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 Santander.
A US dollar-denominated 144A/Reg S senior unsecured bond
issue with intermediate to long maturity is expected to follow,
subject to market conditions.
Votorantim Cimentos (rated Ba2 /BB+/BBB-) has mandated Banco
Votorantim, BofA Merrill Lynch, Citigroup, HSBC, J.P. Morgan and
Santander to arrange a series of fixed income investor meetings
in Europe and the United States, commencing on September 22,
A benchmark USD144A/Reg S senior notes offering with
intermediate maturity may follow, subject to market conditions
and results of a concurrent tender offer.
The roadshow starts in Switzerland on Sep 22 and continues
in London on Sep 23. The tender is for cash and is targeting the
following outstanding EUR notes: EUR559.7m 3.250% 2021s.
(Reporting by Mike Gambale; editing by Shankar Ramakrishnan)