CAF led the charge of Latin American issuers to the cross-border bond market on Thursday with its first 10-year deal since 2012, while three commercial banks and an oil producer also priced new issuance.
The Latin American development bank sold $2 billion of 2036 notes in a placement that was 5.5 times oversubscribed, according to a source involved in the deal.
The development bank priced the 4.625% notes at 99.652 to yield 4.669%, or 85 basis points over SOFR mid-swaps, after opening the initial price talk at around 90 basis points and setting guidance at 87 basis points, the source said.
Investors placed as much as $11 billion in orders, the person added.
Barclays, Bank of America, JPMorgan, Standard Chartered and TD Securities were joint bookrunners on the offering.
BANK BONDS
Meanwhile, three commercial lenders — Banco Industrial, Interbank and Banco Santander Chile — also tapped the primary market to raise a total of $1.75 billion, according to a source involved in the deals.
Guatemala’s Banco Industrial sold $750 million in its first public bond offering since 2021. It priced the 6.55% 10-year, noncallable five Tier 2 notes at 99.794 to yield 6.6% after opening the initial price talk at around 7% and setting guidance at 6.65%, plus or minus five basis points, the source said.
Bank of America, Citi, Deutsche Bank and SMBC Nikko were joint bookrunners on the deal, the person added.
Interbank, Peru’s fourth largest commercial lender, sold $500 million worth of 5.5-year senior secured bonds. It priced the 4.8% 2031 notes at 99.685 to yield 4.866%, or 112 basis points over US Treasury bonds, after opening the bidding at around 140 basis points and tightening the spread at 115 basis points, the source said.
Bank of America, Citi and JPMorgan were bookrunners on the offering, the person added.
Santander Chile also raised $500 million in a sale of five-year bonds. It priced the 4.55% 2031 notes at 99.971 to yield 4.558%, or 82 basis points over USTs, after opening the deal at around 110 basis points and setting guidance at 85 basis points, according to the source.
Bank of America, Goldman Sachs, JPMorgan and Santander were bookruners on the sale, the person added.
PAE RETURNS
Pan American Energy, for its part, sold $375 million worth of 11-year bonds in its first international deal since April 2024, according to a source involved in the deal.
The company, known as PAE, priced the 7.75% 2037 notes at 98.997 to yield 7.9% after it opened the initial price talk in the low-8% area, the source said.
Citi, Itaú BBA, JPMorgan and Santander were bookrunners on the deal, the person added.
The company is a joint venture between London-based BP and Argentina’s Bridas.