EPM Ending Tour, 8 Handle Expected

Colombia’s Empresas Publicas de Medellin (EPM) was set to conclude today investor meetings in support of a $500m plus 2019 dollar bond, which investors see yielding in the low 8% area. This would put the Baa3/BB+ debut issuer wide of the 7.677% that compatriot Ecopetrol got last week on a $1.5bn 2019. The Baa2/BB+ oil producer paved the way for EPM with the blowout deal that rallied in the gray and amassed a near $9bn book, leading some to call it cheap. Ecopetrol did the 2019s at 99.642 with a 7.625% coupon to yield 7.677%, or UST+410bp through Barclays and JPMorgan. JPMorgan and Bank of America-Merrill Lynch are managing the EPM transaction. Meanwhile, Chile’s Arauco is also set to conclude a roadshow for a benchmark 10-year bond through JPMorgan, and Eletrobras is expected later this week with a $600m-$1bn 2019 through Credit Suisse. Both are seen pricing in the low to mid 7% range, say investors and bankers.