Bonds News

LATAM CLOSE-One issuer raises US$350m in LatAm primary

* Books hit US$1.5bn on Kallpa’s 10-year bond

* Colombia conducts Treasury swap to cut 2017 needs

* Argentina’s Supervielle goes public

NEW YORK, May 19 (IFR) - Below is a recap of primary issuance activity in the LatAm market on Thursday:

Number of deals priced: 1

Total issuance: US$350m


Peruvian power company Kallpa Generacion S.A., Baa3/BBB-, announced a US$350m 10-year 144A/RegS senior notes. Credit Suisse, Credicorp Capital, Morgan Stanley and Scotiabank are acting as leads. The power generation company, the largest subsidiary of Inkia Energy & IC Power, is using proceeds to refinance debt. Settle: 5/24/2016.

IPTs low to mid 300bp

GUIDANCE: T+325bp (+/-12.5bp)

LAUNCH: US$350m at T+312.5bp

PRICED: US$350m 4.875% cpn 10-yr (5/24/2026). At 99.258%, yld 4.970%. T+312.5bp. MWC+45bp. 1st pay: 11/24/2016.

BOOK: US$1.5bn


City of Buenos Aires is roadshowing a new 144A/RegS dollar bond to finance a debt tender. The issuer is looking to raise up to US$890m through a senior unsecured 10-year bond, according to Fitch, which has assigned a B rating to the deal.

The borrower was in London and Los Angeles on Wednesday and will head to New York on May 19 and Boston on May 20. The following week it will return to New York on May 23.

Proceeds will be used to help fund an up to US$390m tender for its 9.95% Series 10 due 2017 notes. The outstanding amount is US$415m. Investors will be paid 105.5. Merrill Lynch, Pierce, Fenner & Smith, Deutsche Bank and HSBC are acting as leads and dealer mangers.

Goldman Sachs is on the road marketing a US$500m financing package for Colombian road project Costera.

The borrower is looking at dollar bonds as well as inflation-linked peso bonds and loans, according to Fitch, which assigned a BBB- rating to the notes. (Reporting by Mike Gambale; editing by Shankar Ramakrishnan)