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LatAm sees first issues in three weeks as Dominican Republic, Brazil’s Cemig price deals
By Paul A. Harris
Portland, Ore., July 12 – Latin American credits braved the primary market for the first time in over three weeks, as the Dominican Republic and Brazil’s Cemig Geracao e Transmissao SA completed deals on Thursday.
Both deals were said to be oversubscribed.
However the market exacted a toll, as both paid hefty new issue concessions, an investor said.
Dominican Republic 10-years
Dominican Republic priced $1.3 billion of 10-year notes at par to yield 6%.
The yield printed on top of yield talk. Initial talk was in the 6¼% area.
JPMorgan managed the sale.
Cemig taps 9¼% notes
Meanwhile Brazil’s Cemig Geracao e Transmissao priced a $500 million add-on to its 9¼% notes due Dec. 5, 2024 at 100.5.
The reoffer price rendered a 9.126% yield to worst and a 9.141% yield to maturity.
Initial price talk was in the par area, an investor said.
Banco Bradesco, BBI, Citigroup, Deutsche Bank and Banco Itau have the mandate.
The Cemig deal went well, an informed source said.
The market felt pretty good for fixed income in general.
While emerging markets spreads may have been slightly wider on the day, investors have a lot of cash to put to work, the source added.
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