Sovereigns Plot Debt Issuance

While some of LatAm’s larger sovereigns, including Mexico, Colombia and Peru, have addressed debt fundraising needs earlier in the year, others are looking to take advantage of what are still seen as attractive issuing conditions. Guatemala is heard eyeing the international bond market after closing a request for proposal (RFP) process last month. Last year it mandated Deutsche Bank as it looked to raise up to $500m in the international bond market, but didn’t follow through with a transaction. “In Guatemala we like to be prepared as in previous years, in case the window of opportunity is open to issue, but it doesn’t mean we will proceed with a bond issuance,” says a finance ministry spokesperson, declining to provide further details. Guatemala was last in the dollar market in 2004 when it priced a $330m 30-year at par to yield 8.125% through Citi, according to Dealogic data. Separately, Empresa Nacional de Autopista (ENA), a corporation wholly owned by the Republic of Panama, is planning a toll road securitization similar in structure to last year’s Corredor Sur transaction, as it seeks to help fund the purchase of Panama’s Corredor Norte tollroad from operator PYCSA. HSBC and Global Bank are set to manage, as they did the first deal. Panamanian officials said last year that the government sought to buy a majority stake in the troubled toll road in a transaction of around $650m. The bond size is expected to be larger than that amount, and will be issued through one of ENA’s subsidiaries. Last year’s $395m 8 and 14-year issuance was divided into international and domestic portions, each pricing at par to yield 5.75%. Proceeds were used to refinance existing bonds that had financed the Corredor Sur road. Also, Venezuela may be considering a new sale as soon as this week. “There is clear urgency to feed USD locally, and this week is when everyone is back and it’s a more active market to tap the window,” says Siobhan Morden, managing director and head of LatAm strateg