Copeinca Sets Peru Bait for Foreign Investors

Peruvian corporates should be able tap foreign bond investors, according to fishmeal exporter Corporacion Pesquera Inca (Copeinca), which placed last week a well-received $175m 2017 bond. “There had not been a corporate issue from Peru in about 4 years. So perhaps this issue can help other companies take out debt,” Copeinca CFO Eduardo Castro tells LatinFinance. “Investors perceived Peru as a very strong emerging economy,” he adds. Copeinca wanted to refinance a $185m 2012 syndicated loan and the Peru local market is only absorbing $50m-$70m equivalent issues at 3-5 years, says Castro. He adds that it is improving steadily, and should support $100m equivalent deals by 2011. Copeinca is the second largest Peruvian fishmeal producer, a sector that saw a lot of pre-crisis M&A. “Right now we don’t see a lot of opportunity for further acquisitions, given that the prices for fishmeal are very high,” Castro says, noting that his company has spent 2008-2009 digesting prior acquisitions. In Tuesday’s bond deal, Castro notes the markets turned more favorable this week after Greece-driven investor worries dissipated. He says the fishery was pleased with the investor response, and notes that about 20% of the book went to Asia, which was included on the roadshow as about 70% of exports go to that region. US investors bought 50% and European 30%. The BB minus bond priced inside guidance at 9.125%, via Credit Suisse and Santander.