Oil and Gas

LATAM CLOSE-Issuers raise US$814m equivalent in LatAm primary

* Peru returns with jumbo liability management foray

* Pemex set to announce debt management deal

* Votorantim Cimentos prices new 10-year

* Bermuda launches bond tender

By Mike Gambale and Paul Kilby

NEW YORK, Sept 28 (IFR) - Below is a recap of primary issuance activity in the LatAm market on Wednesday:

Number of deals priced: 3

Total issuance: US$814.24m equivalent


Brazil’s Votorantim Cimentos announced a US$500m will-not-grow 10-year bond (January 2027) that is being issued through St Mary’s Cement Inc. (Canada). Expected ratings are Ba2/BB+/BBB-.

Votorantim Cement North America Inc. and Votorantim Cimentos SA are acting as guarantors. Proceeds are going to fund a tender and for general corporate purposes. Bookrunners are Banco Votorantim, Bank of America Merrill Lynch, Citigroup, HSBC, JP Morgan and Santander.

IPTs: 6.25% area

PRICE GUIDANCE: 6% the number

LAUNCH: US$500m 10-year at 6%

PRICED: US$500m: 98.107; 5.75%C; 6%Y Settlement Oct 3 2016; Maturity Jan 28 2027


AES Panama has announced a US$75m tap of its 6% 2022 bonds ahead of pricing on Wednesday. The deal is being sole lead by Deutsche Bank. The existing bonds have a US$300m outstanding size, according to Thomson Reuters data. The company carries long-term foreign currency ratings of BB-/BB+ by S&P and Fitch.

IPTs - 5.10% area

LAUNCH: US$75m tap of 6% 2022s at 5.10%

PRICED: US$75m tap of 6% 2022s: 103.726; 5.10%YTW


The Republic of Peru announced a benchmark local currency 12-year bond. The bond, which is being sold to foreign investors, is part of a liability management transaction to exchange or tender for outstanding sol and US dollar denominated bonds.

BBVA, Bank of America Merrill Lynch and HSBC are leads on the transaction. The country’s foreign-currency ratings are A3/BBB+/BBB+, while its local currency ratings are A3/A-/A-.

IPTs: 6.625% area

PRICE GUIDANCE: 6.375%, the number

LAUNCH: 806.826m sol (US$239.24m) 12-year at 6.375%

PRICED: 806.826m (US$239.24m) 12-yr: 99.851; 6.35%C; 6.375%Y


Mexican development bank Nafin wrapped up roadshows Wednesday, as it looks to market a potential US dollar bond through Bank of America Merrill Lynch and HSBC. The issuer is rated A3/BBB+/BBB+.

Mexican retailer Liverpool wrapped up roadshows on Wednesday to market a 10-year bond to international investors.

Citigroup, Credit Suisse and JP Morgan have been mandated on the deal.

Mexican bank Banorte has finished marketing a Tier 2 Basel III compliant bond to international investors.

The bank is eyeing either a 15NC10 or a 10NC5 bond. Ratings on the sub debt are expected to be Ba1/BB+, while the bank itself is rated A3/BBB+/BBB+.

Bank of America Merrill Lynch, JP Morgan and Morgan Stanley have been mandated on the deal.

The Republic of Argentina is planning a dual-tranche, benchmark sized euro denominated bond issue, according to a lead.

The sovereign has mandated BBVA, BNP Paribas and Credit Suisse to arrange a series of fixed income investors meetings that will finish in Italy on Thursday. The issuer is rated B3/B-.

Brazilian corporate Ultrapar is finished marketing a possible RegS senior unsecured US dollar bond.

BB Securities, Bradesco BBI, Morgan Stanley and Santander have been mandated to organize investor meetings. Ratings are Ba1/BB+.

Ultrapar is involved in specialized distribution and retail, specialty chemicals and liquid bulk storage. (Reporting by Mike Gambale and Paul Kilby; Editing by Shankar Ramakrishnan)