Cencosud Looks to Lead Debut Borrowers

Chilean retailer Cencosud is set to meet investors ahead of what would be its first dollar bond, starting off a year LatAm bankers hope will see many first-time USD issuers. After being heard last month seeking a 10-year benchmark, Cencosud will meet investors January 6-11, in New York, London, Switzerland, Los Angeles, Boston, Bogota and Lima on a “non-deal” roadshow led by Deutsche Bank, JPMorgan and Santander, according to investors. Baa3/BBB minus Cencosud enters 2011 with an ambitious expansion plan, with analysts estimating a $1bn spend this year. Chileans could account for a decent part of issuance early in the year. CMPC has roadshowed and Falabella is expected with a benchmark as soon as this month. The first of a string of Argie debutants could also start appearing in January, from a pack including developer Raghsa and Argentine Gaming Group. “We should see a lot of high-yield issuance and new names early this year,” says a New York DCM banker, adding that some of the traditional January giants – Mexico, Brazil, BNDES, Petrobras, Colombia – also are monitoring markets. Among potential issuers, Brazil and BNDES will be faced with the choice of coming in USD or global BRL, while Petrobras must get cracking on what should be at least $4bn raised from capital markets in 2011. Also in the oil space, Argentina’s YPF is expected to return to markets soon, for about $600m.