Emisiones De Deuda En América Latina

Latin America and EM New Issue Market
The first two weeks of May have seen relatively lights debt issuance out of Emerging Markets, with a total of $11.6bn in issuance in the first half of the monthcompared with $36bn in the entire month of May 2011. The volatility brought on by elections and the debt concerns in Europe have contributed somewhat to the slowdown in supply out of EM. Last week’s$8.0bn of supply (from 16 transactions) was mainly out of Asian and corporate issuers, the largest of which was China Petrochemical Corporation’s (Sinopec) three-tranche transaction for total proceedsof $3.0bn. Sinopec priced 5-yr, 10-yr, and 30-yr tranches, each with a size of $1.0bn, which priced to yield 2.80%, 3.940%, and 4.90% respectively. China’s Yanzhou Coal priced a $1.0bn 2-tranche,5-yr and 10-yr offering at a spread over UST of 370bps and 390bps, respectively. Other non-LatAm issuers included Slovakia, Russia’s Gazprombank, Georgian Oil and Gas, and Russia’s Sistma. Despite theslowdown in supply, investor demand for EM debt remains solid, as indicated by the continuously positive flows into EM Bond funds, including $860mn of inflows last week. The secondary market has provedresilient to the volatility in other regions, as the spreads on the EM corporate index have declined by 6bps MTD.

 
In Latin America, new issuance volume remained low, with just three transactionspricing out of the region last week for total proceeds of $513mn. Argentina’s EDESA priced a $63mn 5-year bond at $95.125 to yield 14.25%, while Banca Mifel priced a $150mn Tier-2 at $98.44 to yield10.00%. The largest transaction from the region was AJE’s $300mn 10NC5 inaugural debt offering, rated BB/BB+, which priced at par to yield 6.50%. The Peruvian bottler generated strong demand for itsoffering following a four-day, three team Global roadshow covering Asia, Europe, Latin America, and the U.S. The orderbook grew to $2.5bn for the $300mn transaction, allowing the issuer to tighten...