AMERICAS
CHILE
COOPEUCH MAKES DEBUT IN YEN WITH
SOCIAL BOND
Banking and credit cooperative COOPEUCH,
Baa2/BBB/BBB+, provided some activity for
the LatAm primary market last week when
it raised ¥3bn (US$26.69m) in the yen
market through a seven-year issue.
4HEûDEAL ûTOUTEDûASûTHEûREGIONSûlRSTû
education-focused Social bond, priced at par
with a 1.05% annual interest rate, or yen
offer-side swaps plus 82bp.
Daiwa was sole bookrunner on the trade,
which matures on October 30 2025.
LATE SWISS SHOW FROM BANCO DE CHILEBANCO DE CHILE, rated A1/A, popped up on
Friday afternoon with a SFr115m (US$115m)
SENIORûUNSECUREDûlVE
YEARûBONDûDUEû
November 21 2023.
Books opened at mid-swaps plus 65bp
with a 0.573% indicative coupon and yield,
with pricing expected at par.
Banco de Chile has SFr125m coming due
in March 2019, an old 1.25% from 2014. It
has another 2013-vintage SFr175m due in
$ECEMBERûTHEûSAMEûYEAR
)TSûû$ECEMBERûûPAPERûWASû
quoted on SIX bid at a Z-spread of 57bp on
SIX, 8bp tighter and a year longer, making
for an issue premium that looked to be
around 10bp.
Tradeweb had all Chilean banks in the
BP
BPûREGION ûWHILEûAûLEADûOFlCIALûPUTû
the premium at 10bp, saying that the 2024s
are quoted rather than traded. He compared
ITûMOREûWITHûTHEûlVE
YEARûFROMû!$#"ûONû
October 18, which came at plus 70bp and
which is now quoted at 75bp.
Banco de Chile’s bond came later in the
afternoon at mid-swaps plus 65bp for
SFr115m at par. This made for a 0.568%
coupon and yield.
An all-Swiss group of 22 investors
(average ticket SFr5.22m) was led by asset
managers with 64%, while treasury accounts
took 24%.
BNP Paribas (Suisse) was sole bookrunner,
with Bank J. Safra Sarasin as co-lead.MEXICO
MEXICO CITY AIRPORT BONDS SLIP
AHEAD OF CONSULTATIONBonds issued to fund a new Mexico City
airport dipped several points last week, with
the incoming government consulting on
whether to continue construction.
MEXICO CITY AIRPORT TRUST 3.875% 2028s hit a
recent low of 84.75 on Tuesday, down from
97.30 the previous Friday, while the 5.5%
2047s fell three points to 81.50, according to
MarketAxess data.
Pressure on the bonds was coming not
just from the consultation process but also
from broader market weakness, said Roger
Horn, senior EM strategist at SMBC Nikko
Securities America.
There has been some risk-trimming
among crossover investors who typically
buy sovereign and quasi-sovereign bonds
such as these, he said.
$URINGûTHEûRUN
UPûTOûTHEû*ULYûûVOTE û
president-elect Andres Manuel Lopez
/BRADORû!-,/ ûWHOûTAKESûOFlCEûINû
$ECEMBER ûSPARREDûWITHûBILLIONAIREû#ARLOSû
3LIMûOVERûTHEûBENElTSûOFûTHEû53BNû
project.
AMLO argued against putting money
into a project whose costs have risen due to
the weakness in the peso, arguing that
money could be better used for social
programmes.
Slim, whose bank has set up an
INVESTMENTûTRUSTûTOûPARTLYûlNANCEûTHEû
airport, said the facility was instrumental
for economic growth.
The national consultation is taking place
on October 25–28, essentially to decide
between continuing construction on the
project or improving existing airports.
While bond ratings and coupon payments
that come from the existing airport are not
in question, a change in structure would
require an agreement with bondholders,
Horn said.“This is not a case where the debt burden
is too high and a haircut being necessary,”
he said. “I think a reasonable path forward is
some sort of PPP that keeps the concession
with the government-controlled entities but
with greater participation from the private
sector.”
-EXICOû#ITYû!IRPORTû4RUSTûlRSTûCAMEûTOû
market in 2016 with a US$2bn two-part deal
nûTHEûlRSTû'REENûBONDûISSUEûTOûlNANCEûAûNEWû
airport.
It followed in 2017 with a US$4bn two-
parter comprising the 2028s and 2047s.PANAMA
TOCUMEN READIES MARKET RETURNAEROPUERTO INTERNACIONAL DE TOCUMEN began a
roadshow on Friday to market a tap of its US
dollar 144A/Reg S senior secured amortising
bond due 2048.
The borrower is in Panama on Friday and
will head to London on October 29, Boston
on October 30, New York on October 31/
November 1 and Los Angeles on November- The roadshow will end with calls in New
York on November 5.
Citigroup has been mandated as sole lead
manager and structuring agent. Expected
ratings are BBB/BBB from S&P and Fitch.
Tocumen operates Panama’s main airport
and is wholly owned by the government.
ALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Latin America
Managing No of Total Share
bank or group issues US$(m) (%)
1 Citigroup 35 12,781.79 16.5
2 JP Morgan 30 9,494.86 12.3
3 HSBC 16 7,142.33 9.2
4 Deutsche Bank 8 6,386.75 8.3
5 Morgan Stanley 12 4,656.11 6.0
6 BAML 17 4,392.52 5.7
7 Santander 14 3,278.11 4.2
8 BNP Paribas 10 3,012.57 3.9
9 BBVA 4 2,811.40 3.6
10 Credit Suisse 9 2,304.90 3.0
Total 85 77,387.71
Excluding equity-related debt.
Source: Refinitiv SDC code: L3IFR MARKETS
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