Brazil’s Petrobras breaks drought in LatAm market

(Adds investor comments)

By Paul Kilby

Canada Goose Jackets NEW YORK, Jan 9 (IFR) Brazil Petrobras opened the Latin American primary markets on Monday with a US$4bn two part debt sale the region first cross border bond of the year. Canada Goose Jackets

Proceeds canada goose outlet authentic are going to finance an canada goose outlet ontario up to US$2bn tender as part of the canada goose outlet usa debt laden company efforts to term canada goose jacket outlet toronto out upcoming maturities.

Timing was seen as opportune given how much Brazilian bonds have rallied since the broader EM sell off following Donald Trump surprise victory in the US presidential elections on November 8.

canada goose coats couldn have picked a better time, said Ricardo Navarro, a canada goose outlet miami portfolio manager at asset management firm Noctua. are probably near pre Trump levels. canada goose coats

canada goose factory sale After spiking to around 8.3% during the week following the US election, the yield on Petrobras 8.75% 2026s has steadily dropped to canada goose outlet winnipeg hit the low 7% mark last week. canada goose factory sale

At initial price thoughts of 6.5% area on the canada goose outlet legit five year and 7.75% area on the 10, canada goose outlet uk sale bankers were calculating attractive new issue premiums of anywhere between 50bp and 75bp.

canada goose black friday sale That calculation canada goose uk site depended in part on how much weight was given to the high dollar price on canada goose outlet ottawa the existing 8.375% 2021s and 8.75% 2026s, which according to one banker were trading last week around 109 and 110.50, or yields of 5.95% and 7.18%. canada goose black friday sale

cheap canada goose uk dollar price is worth something but not worth 25bp, said one, arguing that investors like Petrobras bonds canada goose outlet seattle for their high liquidity. cheap canada goose uk

uk canada goose means more than the high dollar price. uk canada goose

But other market participants disagreed.

would canada goose stockists uk say that fair value canada goose factory outlet toronto location is close to 5.75% on the five canada goose outlet website legit year, another banker said. high dollar price matters a canada goose coats uk lot for this.

cheap Canada Goose Either way, canada goose jacket outlet Petrobras started with a generous premium to get investors on board, much as Mexican state controlled oil company Pemex did in December, when it amassed an over US$30bn order book after initially offering lavish NICs. cheap Canada Goose

Canada Goose sale isn in a position these days where it can skin every last basis point on their deals, said the first banker. Canada Goose sale

canada goose uk black friday Even so, an over US$20bn book allowed leads to squeeze pricing 37.5bp from IPTs before launching a US$2bn five year to yield 6.125% and a US$2bn 10 year at 7.375%. canada goose uk black friday

Canada Goose online ratcheted in pricing quite a bit, said canada goose outlet in montreal Jason Trujillo, a senior analyst at Invesco. Canada Goose online

Canada Goose Coats On Sale The company has been struggling canada goose outlet boston to regain its footing following a corruption scandal that has had a broad impact on Brazil political and business classes. Canada Goose Coats On Sale

canada goose uk shop New management has been shedding assets and undergoing liability management exercise in an effort to deleverage and improve the company credit standing. canada goose uk shop

canada goose uk outlet While Petrobras fell short of its 2015 2016 divestment target to raise US$15.1bn, investors largely feel the company is heading in the right direction, and it is still seen as cheap to the sovereign. canada goose uk outlet

buy canada goose jacket In the tender, Petrobras is targeting canada goose outlet england US dollar denominated 3% 2019s, floating rate 2019s, 7.875% 2019s, 5.75% 2020s, 4.875% 2020s and floating rate 2020s. buy canada goose jacket

If about his holders tender by the early bird date of January 23, they will receive a purchase price of canada goose outlet vancouver 100.625, 101.625, 110.50, 104.875, 102.75 and 101.625, respectively.

Petrobras is also offering to buy back euro denominated 3.25% 2019s at 105.125 if holders tender by the early bird date.

canada goose store Bradesco, Citigroup, HSBC, Itau and Morgan Stanley are acting as leads. Expected ratings canada goose outlet store near me on the SEC registered notes are B2/B+ (stable/negative). (Reporting by Paul Kilby; Editing by Marc Carnegie and Shankar Ramakrishnan) canada goose store.