BBVA Peru Hits the Road

Peru’s BBVA Continental plans to meet bond investors in Europe, Latin America and the US next week. The BBB/BBB+ rated lender will visit accounts beginning in Santiago and Lima on Monday, followed by visits to Los Angeles and New York Tuesday and Boston and London on Wednesday, before wrapping up in Switzerland Thursday. In June, BBVA Continental received authorization to issue up to $800m in the international bond market, with potential to issue as much as $500m in 10-year bonds and $300m in 4-year bonds. The sale would allow Continental to match assets with liabilities and diversify its funding base. BBVA, Bank of America Merrill Lynch and Goldman Sachs are managing the process. Continental’s last visit to the debt capital market was a $500m sale in January, pricing at par to yield 5.75%, with BBVA, Goldman Sachs and JPMorgan managing. Continental’s 2017 and 2020 bonds were trading at 3.7% and 4.8% in yield Thursday, respectively, according to a trader. FIG issuance from LatAm looks to be a strong theme when activity resumes in September. Brazil’s Caixa Economica Federal is heard mandating Deutsche Bank, HSBC and Bank of America Merrill Lynch and Panama’s Global Bank is heard looking to begin a roadshow ahead of a possible covered bond reattempt. Banco do Brasil is also expected to resume plans to issue a yen-denominated bond.