Latin Finance - November/December 2009 - 8

Debt Anything Goes Appetite for LatAm credit was in October sounding like a broken record, or at least one dusted o from 2007 that has gotten everyone dancing again. Boundaries have rapidly receded, throwing open the doors to euros, perpetuals and low junk rated issuers. For high grade, new issue premia have all but vanished and the pipeline generally is brisk through year-end. Following Brazil’s July tap of 2037s, Mexico took out a “The performance of new issues has been very strong, but considerable portion of its financing needs with a $1.75 billion the market is becoming more e cient,” says Eric Ollom, chief tap of its 2019 and 2040 bonds. The EM fixed income strategist at Je eries. $750 million in 6.050% of 2040s DCM Rank by Volume, Year to October 19 “The starting points are much lower in Venezuela FX trade lifts Citi reopened at 100.100 to yield 6.042%, terms of yield.” Though he notes that and $1 billion in 5.950% of 2019s a global risk correction was possible Rank Bookrunner Value $m # deals priced to yield 5.126%. Barclays and in the short term, there was still a lot 1 Citi 9,680.66 56 JPMorgan managed the sale, which of cash to be put to work. And new 2 JPMorgan 6,662.54 17 played on the safe side, investors say, names will still have to pay, says 3 HSBC 6,450.12 31 with about a point of concession on Ollom. 4 Deutsche Bank 5,735.55 8 each. Banco do Brasil rekindled the Brazil then brought the longest 5 Santander 4,515.47 32 perpetual bond market in October, duration of the year, selling $1.25 with a $1.5 billion o er that saw 6 Barclays Capital 3,912.45 8 billion in new 5.625% 2041 bonds, $13.0 billion in demand. The issuer 7 Goldman Sachs 3,195.73 7 to yield 5.800%, through HSBC and was able to price at 8.5%, tight to 8 BBVA 3,192.58 38 Barclays. Colombia came next with a price talk of mid-9%s, a level which 9 Credit Suisse 3,007.72 10 $1 billion 6.125% yielding 6.155%, still reflected subordination risk that 10 BofA-Merrill 2,689.56 14 through Bank of America-Merrill investors say they did not factor into Subtotal 49,042.38 157 Lynch and Goldman Sachs. Petrobras the government-controlled bank. Citi Total 71,059.75 334 was also expected to follow Brazil and JPMorgan managed the sale. Source: Dealogic into the long end of the curve late “The perp market is back,” says October. a banker away from the deal, noting Meanwhile in loans, Odebrecht’s renewed interest in perps from oil and gas unit closed a $1.34 billion Asian investors and private banking DCM Rank by Fees, Year to October 19 10-year project loan to help finance accounts, as well as falling Brazil risk JPMorgan grabs wallet share a pre-salt drillship concession. The and subordination premia. Rank Bookrunner Revenue $m % Share facility, which took most of the year to Bradesco came first, with a $750 1 JPMorgan 33.90 14.2 structure and fund, includes a $770 million 2019 Tier-2 bond. The bank 2 Citi 26.02 10.9 million commercial tranche priced priced at par to get a 6.75% yield and 3 Santander 15.30 6.4 to step up from 340 basis points over upsized from $500 million, through Libor in year one to 415 basis points 4 HSBC 15.29 6.4 HSBC and Bradesco. Mid-tier bank in year 10. Santander, BNP Paribas, 5 BofA-Merrill 13.88 5.8 Banco BMG was readying a 10-year Société Générale, Calyon, Banco Tier-2 in late October. 6 Credit Suisse 11.47 4.8 do Brasil, Banco Espirito Santo and Even cash-rich América Móvil 7 Barclays Capital 11.16 4.7 HSBC were joint lead arrangers, could not resist. The stingy Mexican 8 Bancolombia 10.51 4.4 taking $100 million tickets and wireless operator priced $750 9 Deutsche Bank 10.43 4.4 higher. million in 5.000% of 2019s to yield 10 BBVA 8.90 3.7 In addition to the commercial 5.105%. The deal represents one of Subtotal 156.86 65.6 tranche, Korea’s Kexim provided the lowest ever coupons for a LatAm Total 239.06 100 a direct loan of $165 million corporate, treasurer Ricardo Rivera Source: Dealogic and covered $135 million of the says. Goldman Sachs and Morgan commercial tranche. Norway’s GIEK Stanley led. also extended a $274 million loan. Compatriot Pemex meanwhile opened up several In the corporate new issue bond pipeline as of late October diversification options for high quality LatAm. After dollar, peso were Mexicans Mabe and Mexichem, as well as Brazil’s TAM and sterling issuance earlier this year, Pemex tapped the dollar and VCP. The latter was planning to issue $1 billion to pay down market again for $1.5 billion in tightly priced 2015 bonds, to debt at Aracruz. On the sovereign side, Peru, El Salvador and the fill in a new spot on its curve. The 4.875% coupon bond yielded Dominican Republic appeared likely to issue before the end of 5.033%. It followed with a 350 million Swiss franc 2014 deal to the year and bankers expected others to join the flow. LF yield 3.525%. The issuer then went to Europe for a €1 billion 2017 bond, the first non-sovereign public deal from LatAm in that currency since 2005, to yield 5.623%. It has also increased its peso bond shelf, and its PMI trading unit is heard to be in talks with banks to raise a new $500 million three-year facility to roll over an equally sized revolver that comes due later this year. Sovereigns Push Duration 8 LATINFINANCE November/December 2009

Latin Finance - November/December 2009

Table of Contents for the Digital Edition of Latin Finance - November/December 2009

Latin Finance - November/December 2009
Contents
Latam-China Flows
Petrobras Interview
Best Boutiques
Banks of the Year 2009
Itau Unibanco Interview
Mexico: How to Capitalize on Crisis
Colombia: Local Shop Repels Foreign Pretenders
Chile: Pefecting the Art of Retail
El Salvador: A Foreign-owned Bank Dominates
Infrastructure & Energy Awards
Private Equity Fundraising
Latin Finance - November/December 2009 - Latin Finance - November/December 2009
Latin Finance - November/December 2009 - Cover2
Latin Finance - November/December 2009 - Contents
Latin Finance - November/December 2009 - 2
Latin Finance - November/December 2009 - 3
Latin Finance - November/December 2009 - 4
Latin Finance - November/December 2009 - 5
Latin Finance - November/December 2009 - 6
Latin Finance - November/December 2009 - 7
Latin Finance - November/December 2009 - 8
Latin Finance - November/December 2009 - 9
Latin Finance - November/December 2009 - 10
Latin Finance - November/December 2009 - 11
Latin Finance - November/December 2009 - 12
Latin Finance - November/December 2009 - 13
Latin Finance - November/December 2009 - 14
Latin Finance - November/December 2009 - 15
Latin Finance - November/December 2009 - 16
Latin Finance - November/December 2009 - 17
Latin Finance - November/December 2009 - Latam-China Flows
Latin Finance - November/December 2009 - 19
Latin Finance - November/December 2009 - 20
Latin Finance - November/December 2009 - 21
Latin Finance - November/December 2009 - 22
Latin Finance - November/December 2009 - 23
Latin Finance - November/December 2009 - Petrobras Interview
Latin Finance - November/December 2009 - 25
Latin Finance - November/December 2009 - 26
Latin Finance - November/December 2009 - 27
Latin Finance - November/December 2009 - Best Boutiques
Latin Finance - November/December 2009 - 29
Latin Finance - November/December 2009 - 30
Latin Finance - November/December 2009 - 31
Latin Finance - November/December 2009 - Banks of the Year 2009
Latin Finance - November/December 2009 - 33
Latin Finance - November/December 2009 - 34
Latin Finance - November/December 2009 - Mexico: How to Capitalize on Crisis
Latin Finance - November/December 2009 - 36
Latin Finance - November/December 2009 - 37
Latin Finance - November/December 2009 - 38
Latin Finance - November/December 2009 - Colombia: Local Shop Repels Foreign Pretenders
Latin Finance - November/December 2009 - Chile: Pefecting the Art of Retail
Latin Finance - November/December 2009 - 41
Latin Finance - November/December 2009 - 42
Latin Finance - November/December 2009 - El Salvador: A Foreign-owned Bank Dominates
Latin Finance - November/December 2009 - 44
Latin Finance - November/December 2009 - 45
Latin Finance - November/December 2009 - 46
Latin Finance - November/December 2009 - 47
Latin Finance - November/December 2009 - 48
Latin Finance - November/December 2009 - 49
Latin Finance - November/December 2009 - Infrastructure & Energy Awards
Latin Finance - November/December 2009 - 51
Latin Finance - November/December 2009 - 52
Latin Finance - November/December 2009 - 53
Latin Finance - November/December 2009 - 54
Latin Finance - November/December 2009 - Private Equity Fundraising
Latin Finance - November/December 2009 - 56
Latin Finance - November/December 2009 - Cover3
Latin Finance - November/December 2009 - Cover4
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