LatAm Bonds

Chilean copper company Codelco has set the final spread for the a 10 year euro issue at 93bp over mid-swaps, inside the 95bp-100bp range indicated earlier on Wednesday. The deal’s size is indicated at around €500m, but has not been set, said a syndicate official.

Jamaica made a triumphant return to bond markets on Tuesday just a year after its last debt restructuring, showing the appetite for yield among bond investors as the sovereign clinched its lowest ever coupon in international markets.

Odebrecht’s oil and gas arm reopened recently issued perpetual notes on Tuesday, taking advantage of a strong market to raise another $150m in an opportunistic trade.

Chilean copper company Codelco has mandated HSBC, Deutsche Bank and Santander to arrange a 10 year euro denominated bond, its debut in the currency. Investor calls are taking place on Tuesday for the deal.

LatAm market participants said new issuance conditions are strong despite Brazilian poultry company Globoaves’ decision to postpone a planned bond issue on Monday. Peru’s InRetail Shopping Malls is likely to be the next borrower from the region to issue bonds.

Peruvian government-owned development bank Corporación Financiera de Desarrollo (Cofide) is starting a roadshow on Monday ahead of a planned senior and subordinated bond issue.

Mexican state oil company Pemex pounced on very strong market conditions to reopen its peso-denominated global depositary notes on Thursday, attracting MP57bn ($4.4bn) of demand for a MP11bn tap to continue the run of major new issues in Latin America.

Amid critical times for Argentina’s status in debt capital markets, dairy company Mastellone Hermanos brought the country its fourth international issuer since 2012 with a bond that, though small, bankers on the deal claimed was a landmark.

Investors said that Grupo Bimbo had priced its $1.3bn dual-tranche bond “to perfection” after the Mexico-based global bakery firm sold 10 and 30 year debt well inside its existing curve on Tuesday and then saw its bonds remain stable in the secondary market.

Three Latin American borrowers started roadshows with bond investors this week as bankers’ predictions that the football World Cup would lead to a slowdown in new issue activity were proven false.

Dairy company Mastellone Hermanos is set to become the second Argentine issuer after oil company YPF to raise new money in international markets this year as it looks to price a $200m seven year non-call four deal on Thursday.

Brazilian construction group OAS provided the latest allocation headache for LatAm syndicate bankers after investors placed $3.6bn of orders for a trade of just $400m on Wednesday.