Category: Argentina

Argentine industrial conglomerate Grupo Pescarmona (GPC) announced Friday that talks had broken down with GE to buy its global hydroelectric energy business. GPC offered no details of the breakdown of negotiations. The acquisition would have given GPC assets in Canada, China and Finland. The Argentina company announced the acquisition last December and had hoped to conclude the sale in the first quarter of this year.

Argentine utility Hidroeléctrica Piedra del Aguila (HPDA) is seeking $125m in 10-year non call fives with pricing slated for Friday June 29. Roadshows are taking place in Europe on Monday, New York Tuesday and Wednesday, and Boston Thursday. Guidance is expected Wednesday or Thursday. HPDA is the largest private hydroelectric generator in Argentina. Proceeds are to refinance debt from its 1999 and 2004 restructuring and for working capital. The company holds a concession until 2023, from the Argentine government to operate its hydroelectric facility and for the generation and sale of electricity. Merrill Lynch has sole books.

Argentine foodmaker Arcor is roadshowing a $100m 10-year amortizing bond in Europe this week. Stops are planned in LA on Friday and on the East Coast in the early part of next week, with pricing set for June 27. The BB minus notes amortize in the final two years, giving the bonds a 9.5-year average life. Citi, Santander Rio and BBVA are handling the sale.

Argentina’s Banco Comafi, a mid-market bank based in Buenos Aires, tapped the peso-linked market for $200m worth of 5-year amortizing notes Wednesday at par to yield 12.50%. The notes, which have a 4-year average life, came at the tight end of 12.50%-12.75% guidance, according to a banker close to the deal. Most of the participants in the deal were US and Europe-based, and put in orders for more than 2.5x the book. Citi led.

Argentina’s industrial output rose in May by 6.4%, year on year, according to national statistics institute, INDEC. Cumulatively, for the first five months of the year, production was up 6.6%. Eleven of the 12 industrial sectors showed growth between January and May, said the government, with the automotive sector leading expansion once more.

Argentina’s economic expanded 8.0% in the first quarter of the year, reports the country’s national statistics bureau, INDEC. According to the economy ministry this is the fifth consecutive year of growth, averaging 8.8%, that the country has achieved. The most dynamic sector in the first quarter was shown by services, which showed year-on-year growth of 8.4% and compares with a y-o-y rise of 6.1% of goods. The subsector of financial intermediation stood out as did transport and communications, expanding 19.5% and 13.3%, respectively.

Spanish energy firm Gas Natural has increased its stake in Argentina’s strained gas industry. Gas Natural has bought the 28% it had yet to own in Natural Servicios, Natural Energy, Invergas. and Gas Natural SDG Argentina. The Barcelona-based company paid $55.4m to Germany’s E.ON to take its holding to 70%.

Argentine food producer Arcor officially announced plans to raise $100m in 10-year amortizing bonds, as first reported by LatinFinance last week. Citi, Santander Rio and BBVA were mandated for the BB minus-rated deal.

In a quietly marketed local offering, Argentine distribution company Edesur raised ARP165m ($53.7m) in 11.75% of 2012 notes. The bonds, part of a $450m MTN program, were priced at par, according to a filing with the local exchange. The company had obtained approval to list up to ARP200m on the exchange. JPMorgan and Santander Rio led.

Argentina’s Banco Hipotecário clinched an 11.250% coupon on $150m of 3-year peso-linked notes yesterday. When it issued price talk in the 11.375% area Wednesday, the bank said it was looking for $150m, but during the prior week, Hipotecário had announced a $200m deal. At par to yield 11.25%, the deal came 50bp wide of the level at which Banco Macro priced a 5-year peso linked two weeks back, though those bonds have since widened out. Both banks’ senior notes got Ba1 ratings from Moody’s. Citi and Deutsche led.