South America

Argentine cable company Cablevision will begin meeting investors on Thursday ahead of a planned $500m bond issue.

Brazilian pulpmaker Eldorado Brasil Celulose is understood to be planning to meet fixed income investors as soon as this week ahead of a $500m debut international bond sale.

Deutsche Bank, Itaú and JP Morgan will manage Argentine cable company Cablevision’s return to international bond markets, according to Lat Am DCM bankers.

Cablevision, Argentina’s leading pay TV and broadband provider, will look to revive the country’s corporate bond market with a $500m deal to refinance existing debt.

Enduring optimism about Argentina’s economic prospects, increased funding from the federal government and the chance for investors to pick up significant spreads over the sovereign will continue to allow Argentine sub-sovereigns to tap international bond market in volume, said market participants.

Brazilian meatpacker Marfrig increased the size of a new bond by 50% and still saw it trade two points above reoffer the day after pricing this week as Lat Am syndicate bankers said they were lining up more corporate issuance from beleaguered Brazil.

Meatpacker Marfrig increased the size of the its new seven year non-call three bond from $500m to $750m to send a message that, in the case of certain issuers at least, Brazil is back.

The Argentine province that analysts consider to be the strongest of those left to issue this year will meet bond investors next week ahead of a potential $1bn bond.

Derivatives traders this week took the resignation of Brazilian planning minister Romero Juca in their stride, leaving key measures of risk largely unchanged.

The City of Buenos Aires lived up to its reputation as the best sub-sovereign credit in Argentina after pricing a new bond just 50bp over where leads believed the sovereign would have sold a new 10 year.

Meatpacker Marfrig announced initial price thoughts low to mid 8% area for a new seven year non-call three bond expected to be priced on Wednesday, with S&P so impressed by the company’s capital market activity that it assigned a positive outlook to the rating.

The City of Buenos Aires is set to issue a new 11 year amortiser on Tuesday after announcing initial price thoughts that will make it the tightest of all the recent sub-sovereigns to have issued in Argentina.