Coazucar Orders Swell Ahead of Debut

Corporacion Azucarera del Peru (Coazucar) has received $3.4bn in orders, according to investors, for a new bond of up to $350m set to price as soon as today, following 7%-area yield guidance Wednesday. The sugar and ethanol unit of Grupo Gloria initially emerged with low to mid 7% whispers Wednesday morning for the senior secured 2022 NC5 BB/BB+ bond representing the issuer’s international debut. Coazucar finished fixed-income investor meetings in Europe, the US and LatAm on Wednesday, and is raising funds to refinance existing debt and capital expenditures. The remainder of proceeds will be used for general corporate purposes. Leads are using Peruvian bottler Ajecorp’s 2022 NC5 bonds, trading to yield 6.00% Wednesday, as a direct comp and Brazilian sugar and ethanol producer Cosan’s 7.0% of 2017 bonds, trading at 4.24%. Bank of America Merrill Lynch and Citi are managing the sale. A deal would offer a continued test of high-yield corporate appetite in the region, following a well-bid $350m sale from Mexico’s ICA last week. Coazucar operates 5 mills and 8 distilleries located in Peru, Ecuador and Argentina, crushing 8.4m tons of sugarcane per year.