Corporates Scramble to DCM Window

Several LatAm corporates are adding to an increasingly crowded cross-border DCM pipeline, as a window of opportunity appears to have opened on the back of successful taps from issuers like Colombia and BM&FBovespa. Brazilian airline Gol is set to price as soon as today a new 2020 bond, which is expected to be $200m-$400m in size, according to Fitch, which assigns a BB minus rating. Proceeds from the sale, led by Bank of America Merrill Lynch, Citi, and Itau, will be used to refinance existing debt. Mexican retailer Grupo Famsa is meanwhile preparing a deal of up to $200m due in up to 5 years, according to Fitch, which assigns a B+ rating. The Mexican retailer is expected to price by the end of this week, according to bankers managing the sale. The retailer is seeking funds to refinance debt as well as for general corporate purposes, and has hired Credit Suisse to lead. Elsewhere, Argentina’s Inversiones y Representaciones (IRSA) is reviving its plan for a 10-year bond, according to investors. IRSA had been shopping in May the 2020 at a size of $150m-$250m. Citi is global coordinator on the transaction, rated B internationally and AA minus locally, with Itau and Santander as bookrunners. And Brazil’s JBS is heard packing its bags for a non-deal roadshow, through JPMorgan and Santander, as is Telefonica de Chile, also via JPMorgan. The newcomers and revivals join an already active pipeline. As previously reported, Brazil’s CSN is heard preparing to launch a transaction, if market conditions allow. Banco do Brasil, HSBC, Itau, Morgan Stanley and Santander managed the meetings for the Ba1/BB+/BBB minus steelmaker, which last issued in September, for $750m. Banorte, and Magnesita also completed roadshows in the last few weeks. Bancolombia set to present this week, while Chubut and Banco Votorantim are contenders.