* Petrobras Argentina's US$500m bond rated B3: Moody's * Brazil central bank nominees support free-floating real * Celulosa Argentina's US$200m bond rated B3: Moody's * 10yr UST hits all-time low of 1.37% By Mike Gambale NEW YORK, July 5 (IFR) - No deals priced in the LatAm primary market on Tuesday.
Here is a snapshot of LatAm sovereign credit spreads: SOVEREIGN 7/1 6/30 6/29 1D 10D YTD 2015/16 HIGH ARGENTINA 488 488 474 0 4 - - BARBADOS 690 692 666 -2 45 86 659 (2/11/16) BRAZIL 321 324 329 -3 -30 -165 542 (2/11/16) CHILE 96 108 104 -12 -6 10 143 (2/11/16) COLOMBIA 239 241 243 -2 -21 -50 412 (2/11/16) COSTA RICA 448 452 458 -4 -15 -69 587 (2/11/16) DOMINICAN REP 401 409 417 -8 -20 -14 542 (2/11/16) ECUADOR 950 949 923 1 21 -365 1765 (2/11/16) EL SALVADOR 660 663 670 -3 -16 20 840 (2/11/16) GUATEMALA 292 296 299 -4 4 -10 385 (2/11/16) JAMAICA 462 468 450 -6 20 13 519 (2/11/15) MEXICO 184 185 189 -1 -12 -10 278 (2/11/16) PANAMA 192 193 201 -1 -11 -14 272 (2/11/16) PERU 189 191 197 -2 -7 -42 291 (2/10/16) TRINIDAD & TOBAGO 233 232 231 1 15 135 173 (1/15/15) URUGUAY 245 256 258 -11 -11 -23 344 (2/11/16) VENEZUELA 2706 2704 2680 2 -174 -86 3713 (2/12/16) Source: Bank of America Merrill Lynch Master Index SPREAD TRENDS: One-day change shows most LatAm sovereigns tighter Ten-day trend 11 out of 17 sovereigns tighter YTD: Brazil 165bp tighter PIPELINE: Argentina's Province of Chubut is looking to raise US$500m through amortizing notes due 2026, according to Moody's Investors Service, which has assigned a B3 rating to the issue.
The notes will be secured by a percentage of hydrocarbon royalties to be paid by the Argentine branch of Pan American Energy to the Province, the rating agency said.
The notes, which will be issued under New York law, will start amortizing in 24 quarterly instalments after a grace period of four years. The Province has the legal capacity to increase or reopen the issue size up to US$650m.
Chubut plans to use half of the proceeds from the sale to refinance existing debt and the remainder to fund infrastructure work.
Argentina infrastructure company CLISA is set to kick off roadshows this week ahead of bond offering and liability management exercise.
The company will visit accounts in Chile, Switzerland, London, Boston, New York and Los Angeles between July 1 and July 13. The bond is being done in conjunction with a cash tender for US$87.106m of outstanding 11.50% notes due 2019.
Holders are being offered a price of 110.00 if they tender by the early bird date of July 13. Thereafter but before the expiration date of July 28, the price drops to 106.50.
BCP and Santander are acting as dealer managers on the tender and leads on the bond sale.
Chile's Transelec, rated Baa1/BBB/BBB, will start roadshows this week as it looks to market a potential 144A/RegS bond.
The borrower met with investors in London on Monday, and then Los Angeles on Tuesday and Boston and New York on Wednesday. Transelec is Chile's largest power transmission company by kilometers of lines. Citigroup, JP Morgan, Santander and Scotiabank are acting as leads.
Petrobras Argentina is preparing an up to US$500m bond sale to fund a tender for all of its US$300m of outstanding 5.875% 2017s, according to a filing with local regulators. The borrower is seeking to raise 10-year money and has mandated Citigroup and Deutsche on the deal. The announcement comes after Pampa Energia agreed earlier this year to purchase a 67.2% stake in Petrobras Argentina for US$892m.
Petrobras Argentina's was rated B3 by Moody's.
Argentine power company Pampa Energia will also hire four banks to lead a new international bond sale that will refinance debt taken out to fund its acquisition of Petrobras's Argentine assets. The company plans to hire Deutsche Bank, Citigroup, ICBC and Banco Galicia to lead the bond sale, which will refinance a US$700m bridge loan extended by the same lenders, Pampa chairman Marcelo Mindlin told IFR.
Mexican real-estate developer Grupo GICSA has finished investor meetings through JP Morgan and Santander. The company has been marketing a US dollar bond, which is expected to be rated BB/BB-.
Celulosa Argentina is readying a US$200m seven-year seniour unsecured bond sale. Moody's assigns B3 rating to proposed notes. The pulp and paper company has been in discussions with bankers from Citigroup and Credit Suisse about financing options, the company said.
Bolivia is hoping to sell an up to US$1bn 10-year bond in the coming months, according to Economy Minister Luis Arce Catacora. Proceeds would go mainly towards investment in healthcare, specifically hospitals. Bolivia is rated BB by S&P and Fitch and one notch lower at Ba3 by Moody's.
(Reporting by Mike Gambale; editing by Shankar Ramakrishnan)