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LATAM CLOSE-LatAm primary ends week with US$7.567bn in supply
January 13, 2017 / 6:34 PM / a year ago

LATAM CLOSE-LatAm primary ends week with US$7.567bn in supply

* Bankers brace for LatAm supply surge
    * Belize approaches holders to amend superbond
    * Brazil's Usiminas unit saw no risk from capital reduction

    By Mike Gambale
    NEW YORK, Jan 13 (IFR) - No deals priced in the LatAm primary market on
Friday.
    
    VOLUME STATISTICS FOR US DOLLAR MARKET    
    THIS WEEK'S US$ VOLUME:
    8 tranches for US$7.567bn
    
    JANUARY VOLUME:
    8 tranches for US$7.567bn
    
    YTD VOLUME:
    8 tranches for US$7.567bn    
    
    Below is a snapshot of sovereign credit spreads across the region.
     SOVEREIGN      1/12  1/11  1/10  1D   10D   YTD   2015/16 HIGH
 ARGENTINA          449   460   454   -11   21   23         -
 BARBADOS           680   680   679    0    41   37   659 (2/11/16)
 BRAZIL             269   277   279   -8   -30   -33  542 (2/11/16)
 CHILE               74    79    78   -5    -6   -10  143 (2/11/16)
 COLOMBIA           186   193   191   -7   -13   -13  412 (2/11/16)
 COSTA RICA         408   411   408   -3   -26   -31  587 (2/11/16)
 DOMINICAN REP      365   366   358   -1   -27   -30  542 (2/11/16)
 ECUADOR            631   631   623    0   -25   -23  1765 (2/11/16)
 EL SALVADOR        519   522   516   -3    -2   -2   840 (2/11/16)
 GUATEMALA          258   257   255    1    -2   -4   385 (2/11/16)
 JAMAICA            358   353   349    5    -1   -5   519 (2/11/15)
 MEXICO             204   213   210   -9    7     3   278 (2/11/16)
 PANAMA             162   167   165   -5   -16   -19  272 (2/11/16)
 PERU               151   157   156   -6   -11   -16  291 (2/10/16)
 TRINIDAD & TOBAGO  212   212   211    0    -1   -8   173 (1/15/15)
 URUGUAY            214   221   219   -7   -12   -18  344 (2/11/16)
 VENEZUELA          2276  2295  2268  -19  -15   -18  3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    
    SPREAD TRENDS:
    One-day change 12 out of 17 sovereigns tighter
    Ten-day trend 14 out of 17 sovereigns tighter
    YTD: Brazil tighter by 33bp
    YTD: Barbados wider by 37bp
    YTD: Costa Rica tighter by 31bp
    
    PIPELINE 
    The Republic of Argentina, rated B3 by Moody's and B- by S&P, has mandated
BBVA, Citigroup, Deutsche Bank, HSBC, J.P. Morgan, and Santander to arrange a
series of fixed income investor meetings commencing on Monday, January 16th. A
benchmark USD-denominated 144A / Reg S (with registration rights) transaction
will follow, subject to market conditions.
    Monday, January 16th London, Tuesday, January 17th Boston & L.A., Wednesday,
January 18th New York    
    
    The Republic of Chile announced on Thursday a peso-denominated 144A/Reg S
bond due February 28 2021, with pricing set as early as January 18.
    The new bond is a tap of a local instrument that priced last year and will
be sold in a Euroclearable format to foreign investors, a source familiar with
the deal told IFR.
    The structure is similar to what has been done in Mexico, where the
sovereign and some corporates such as oil company Pemex have sold domestic bonds
that can be settled in both Euroclear and locally.
    The security carries a 4.5% annual coupon, accruing from the issuance date
of September 1 2016. The deal is governed by Chilean law and is listed on the
Santiago Stock Exchange.
    Bookrunners are BNP Paribas, Citigroup, Goldman Sachs and JP Morgan. Local
currency ratings are Aa3/AA/AA-. The bond is being led by BNP Paribas,
Citigroup, Goldman Sachs and JP Morgan. The country's local currency ratings are
Aa3/AA/AA-.
    
    Metro de Santiago is marketing a 30-year bond issue through Bank of America
Merrill Lynch and JP Morgan.
    Investor calls will be held on January 16, while roadshows will end in
Boston on January 17. 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 is on the road marketing a new US
dollar bond, ending roadshows in London on January 16.
    The company is looking to raise up to US$500m 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.
    
    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.    
    
    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 joint bookrunners.

 (Reporting by Mike Gambale; Editing by Paul Kilby)

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