Latam Airlines Lands Exim-Backed Bond

Latam Airlines Group has issued $288m in bonds guaranteed by the US Export-Import Bank. Issued through the Caroboa Leasing vehicle, the 2024 bonds with a 6.19-year average life priced at par with a 1.829% coupon, or MS+67bp, pricing inside of 70bp-75bp guidance. Proceeds from the issue will help the company formed from the fusion of Chile’s Lan and Brazil’s Tam fund the purchase of two new Boeing aircraft. Credit Agricole and Goldman Sachs managed the sale, aimed at US high-grade accounts and rated AAA. Mexico’s Pemex has taken advantage of US Exim guarantees to issue $1.2bn in the US market at lower rates in the past two months.