* Fibria drops controversial covenant language on bond
* Brazil surprises with aggressive rate cut to rescue
* Petrobras to invest US$19bn in 2017
* Argentina mandates Santander, BBVA, Citi, DB, HSBC, JPM
By Mike Gambale
NEW YORK, Jan 11 (IFR) - Below is a recap of primary
issuance activity in the LatAm primary market on Wednesday:
Number of deals priced: 1
Total issuance volume: US$700m
FIBRIA OVERSEAS FINANCE
Fibria Overseas Finance Ltd, exp rating BBB-/BBB-, announced
a US$ benchmark SEC registered 10-year senior unsecured notes.
Bookrunners: BNP Paribas, BofA Merrill Lynch, Citigroup, HSBC,
JP Morgan. The notes are guaranteed by Fibria Celulose S.A. UOP:
eligible Green projects. Settle: 1/17/2017.
IPT: very low 6% area
GUIDANCE: 5.75% area (+/- 5bp)
LAUNCH: US$700m at 5.70%
PRICED: US$700m 5.5% cpn 10yr (1/17/2027). At 98.491, yld
NIC: 5bp (vs. 5.25% '24s at 5.40%, add 2bp for maturity
FIBRIA 5.250% May 12, 2024 at a yield of 5.40%
Metro de Santiago is marketing a 30-year bond issue through
Bank of America Merrill Lynch and JP Morgan.
The borrower was in London on January 11, and will head to
New York on January 12 and 13 and Boston on January 17. Investor
calls will also be held on January 16. Expected ratings are A+/A
by S&P and Fitch. The new 30 year may carry an optional
redemption before maturity.
Argentine energy company Pampa Energia kicked off roadshows
this week as it looks to market a new US dollar bond.
The borrower will be in New York on January 11 and 12, in
Los Angeles on January 13 and in London on January 16. The
company is looking to raise up to US$500m size and considering
tenors of five, seven or 10 years.
Expected ratings are B3/B-/B+. Citigroup and Deutsche Bank
are acting as joint bookrunners, with Credit Agricole and
Santander acting as co-managers.
Aeropuertos Dominicanos Siglo XXI (Aerodom), an airport
operator in the Dominican Republic, is marketing a new US dollar
bond that will fund a tender and consent solicitation for
The borrower ended roadshows in New York on Wednesday. JP
Morgan and Scotiabank have been mandated as joint bookrunners to
arrange meetings. Expected ratings are BB-/Ba3 by S&P and
Proceeds will go to fund a tender and consent solicitation
for Aerodom's 9.25% senior secured notes due 2019 and for
general corporate purposes.
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.
Brazilian bioenergy company Raizen started fixed-income
investor meetings this week to market a possible US dollar bond.
The borrower will visit accounts in London, New York and Boston
between January 9 and 11.
Expected ratings are BBB-/BBB by S&P and Fitch. Bank of
America Merrill Lynch, Bradesco, Citigroup, JP Morgan and
Santander have been mandate to coordinate roadshows.
The Republic of Honduras, rated B2/B+, has hired Bank of
America Merrill Lynch and Citigroup for a US dollar bond
roadshow, a bank on the deal told IFR.
This week, the borrower will visit investors in Los Angeles,
Boston and New York, where it will end marketing for the deal on
Argentina power company Genneia is marketing a US dollar
bond with an intermediate tenor through Bank of America Merrill
Lynch, Itau and JP Morgan.
This week, the company will be in New York, Boston and Los
Angeles, where it will end investor meetings on January 11.
Ratings are expected to be B3/B+ by Moody's and Fitch.
Argentina's Finance Minister Luis Caputo said last month
that the administration was considering tapping the debt markets
in January, according to Reuters. Local press have been
reporting that the sovereign is looking at an up to US$10bn
deal. The country needs US$22bn of debt financing this year,
plus an additional US$21bn for refinancing needs, Caputo said.
Paraguay is considering raising up to US$550m in the bond
market in March, Reuters quoted Finance Minister Santiago Pena
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
Argentina's Province of Entre Rios has finished roadshows
ahead of a possible US dollar bond. Citigroup, HSBC and
Santander organized investor meetings. Expected ratings are B-/B
by S&P and Fitch.
Colombian glass company Tecnoglass has wrapped up investor
meetings ahead of an up to US$225m debut dollar bond with a
tenor of between five and seven years.
Expected ratings are Ba3/BB- by Moody's and Fitch. Bank of
America Merrill Lynch and Morgan Stanley have been mandated as
(Reporting by Mike Gambale; editing by Shankar Ramakrishnan)