Cresud is out with official guidance of 7.5% area for a new $60m 3-year RegS-only bond, falling in line with earlier mid-7% whispers. The Argentine agribusiness and real estate company is to wrap up fixed-income investor meetings in Santiago, Chile today, with pricing expected today or tomorrow. Cresud may have some name recognition, but it remains to be seen if a single B credit can price in a market that is less than receptive to high-yield names. Cresud is raising funds to refinance its debt and for general corporate purposes. Itau is sole lead on the sale. Cresud has a presence in Argentina, Brazil, Bolivia and Paraguay, and also has a 57.49% stake in IRSA, a commercial real estate firm. In July 2010, IRSA issued a $150m 11.5% 2020 to yield 11.875%. Leads on that issue were Citi, Itau and Santander.
Category: Bonds
Odebrecht to Meet Fixed Income Accounts
Brazil’s Construtora Norberto Odebrecht plans to meet fixed income investors starting Monday via Credit Suisse, Deutsche Bank, and Goldman Sachs. The Baa3/BB+/BBB minus issuer starts in London, before heading to New York and Chicago on Tuesday and wrapping up in Boston and Los Angeles on Wednesday. Currency, size and tenor for a potential bond offering have not been disclosed. Odebrecht last visited the dollar market in March, when it issued $500m in 2023 bonds via BAML and HSBC.
Panama Politics Challenge Growth Story
Despite strong economic performance Panama could continue to underperform due to political troubles, analysts say. This was highlighted by the row that may see the departure of Finance Minister Alberto Vallarino. Vallarino and other cabinet members have threatened to quit over the firing of the country’s foreign minister. Juan Carlos Varela, who also holds the position of vice president, was fired as foreign minister after the President accused him of dedicating too much time to his plan to run for president in 2014. Vallarino, Varela, and the others who threatened to quit are from the Panamenista party, a junior coalition partner with the President’s party. “With the latest political news, we think Panama is likely to continue underperforming its high grade peers,” Nomura says, noting it had been expecting a convergence to neutral. Citi, however, says these political events should not have a significant short-term effect on asset prices.
Santiago Metro Seeks Bonds
Empresa de Transporte de Pasajeros Metro, Santiago’s subway operator, has registered for a domestic bond sale. The Chilean issuer is able to sell bonds of up to UF6.7m ($315m) at maturities of up to 30 years. It is raising funds for refinancing existing debt. Santander has been picked to manage the sale.
The Swiss Option
The Swiss-franc market has become a popular destination for LatAm blue-chips. But volumes may depend on investors’ willingness to venture into junk territory.
Turning the Corner
The Dominican Republic is on a path to recovery as FDI flows increase and more investors buy its debt in the local and international bond markets. Will politics ruin the party?
Uncertain Times
Investment bankers focused on Latin America may have had a profitable year so far, but the last quarter looks less than promising against an increasingly rocky backdrop. Optimism in the […]
Upside Potential
Venezuela’s presidential elections are still more than a year away. But the possibility of regime change is already moving spreads. Are investors blind to the underlying risks?
Clearing the Way
The easing of cross-border clearing and settlement in LatAm has gone hand in hand with regional integration. Is a centralized system the next step?
Watching Windows
Summer doldrums and a steep spike in volatility have pushed volumes lower in recent months. The door essentially slammed shut for junk credits in August, and left high-grade borrowers to […]