Peruvians Seen Seeking $300m

Corporacion Azucarera del Peru (Coazucar) is targeting $300m for its planned 2022 bond sale, Fitch says while assigning a BB rating. The sugar and ethanol unit of Grupo Gloria is on the road in Europe, the US and LatAm through July 25, with a BB/BB+ 2022 bond expected to follow. Bank of America Merrill Lynch and Citi are managing the process. A deal would offer a continued test of high-yield corporate appetite in the region. Coazucar operates 5 mills and 8 distilleries located in Peru, Ecuador and Argentina, crushing 8.4m tons of sugarcane per year. Fitch highlights Coazucar’s position as the largest sugar producer in Peru, a low cost structure, and high operating margins, as well as adequate liquidity and an improved capital structure. On the downside, the agency notes its 90% product concentration in sugar and the earnings volatility inherent to a commodities business.