Latin America heats up primary with four new issues; Argentina late with debt swap; DEWA, Nomos price

By Christine Van Dusen

Atlanta, April 15 - Latin America was the hot spot among emerging markets on Thursday as several issuers from the region brought deals and investors awaited word on Argentina's debt-swap plan, market sources said.

"It's feeling relatively good," a New York-based source said. "The new issue market is relatively quiet, but there were some emerging markets-centric names pricing today."

She pointed to several in Latin America. There was Brazil's pricing of $750 million of 4 7/8% global bonds due 2021 at 98.978 to yield 5%. Also from Brazil, Banco Bradesco SA priced $250 million senior notes due 2013 to yield Treasuries plus 160 basis points.

Then there was Banco Santander Chile's pricing of $500 million floating-rate senior notes due 2012 at par to yield Libor plus 125 basis points. And Mexico's Grupo Financiero BBVA Bancomer SA priced $1 billion tier 1 7 ¼% notes due 2020 at par to yield 7¼%.

All of this Latin American activity came against the backdrop of continuing news from Argentina, which was supposed to launch on April 14 an offer to swap $20 billion in defaulted debt but did not.

On Thursday President Cristina Fernandez de Kirchner said the information would be released that day, but as of the New York close the details remained scarce, market sources said.

Still investors seemed optimistic - there were "tighter spreads," a source said.

Also in the primary on Thursday, Dubai Electricity and Water Authority's $1 billion 8½% notes due 2015 priced at par to yield 8½%. And Russia's Nomos-Bank priced $350 million 51/2-year 8¾% eurobonds.

Nomos-Bank was "trading 100.05-100.15 since the break," according to a London-based trader.

Another name that traded well on Thursday was Southern Copper Corp. The Phoenix, Ariz.-based but Latin America-focused copper producer recently priced a $1.5 billion two-tranche deal with $400 million 5 3/8% 10-year notes priced at 99.481 with a spread of Treasuries plus 162.5 basis points and $1.1 billion 6¾% 30-year bonds priced at 99.25 to yield 6.809% with a spread of Treasuries plus 212.5 basis points.

"That deal is about 3 basis points tighter on the day," the New York source said. "So it seems the market in general feels good."

Other than that, she said, "it's just been relatively quiet."

DEWA prices notes

Dubai Electricity and Water Authority (DEWA) priced $1 billion of 8½% notes (Ba2//BBB-) due April 22, 2015 at par to yield 8½% or Treasuries plus 592.4 basis points, according to a market source.

That was at the tight end of talk for a yield of 8½% to 8 5/8%.

Citigroup, National Bank of Abu Dhabi, RBS Securities and Standard Chartered Bank were the bookrunners for the Rule 144A transaction.

DEWA is a state-owned utility company.

Bradesco prices notes

Brazil's Banco Bradesco SA (Cayman branch) priced $250 million of 3 1/8% senior notes due April 22, 2013 (Baa2/BBB/BBB-) at 99.711 to yield Treasuries plus 160 basis points, according to a market source.

Bank of America Merrill Lynch, Banco Bradesco, BESI Bank and HSBC were the bookrunners for the Rule 144A transaction.

Banco Bradesco is a lender based in Osascom, Brazil.

Santander Chile sells notes

Banco Santander Chile priced $500 million floating-rate senior notes due April 20, 2012 (Aa3//A+) at par to yield Libor plus 125 basis points, according to an informed market source.

Deutsche Bank and Banco Santander were the bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used for general corporate purposes, mainly to fund lending activities.

Banco Santander Chile is a Santiago-based subsidiary of financial services company Grupo Santander.

BBVA Bancomer prices notes

Mexico's Grupo Financiero BBVA Bancomer SA priced $1 billion of tier 1 7¼% notes due 2020 at par to yield 7¼% or Treasuries plus 341 basis points, according to a market source.

The bookrunners for the deal were Deutsche Bank and Goldman Sachs.

BBVA Bancomer is a Mexico City-based lender.

Nomos-Bank prices eurobonds

Russia's Nomos-Bank priced $350 million of 51/2-year 8¾% subordinated eurobonds (/B-/), a market source said.

UBS, VTB Capital and Nomos-Bank were the bookrunners for the deal, which roadshowed earlier this month.

Nomos-Bank is a private lender based in Moscow.

Brazil prices bonds

Brazil priced $750 million 4 7/8% global bonds due Jan. 22, 2021 at 98.978 to yield 5% or Treasuries plus 115.6 basis points, according to an informed source.

Citigroup and JP Morgan were the lead bookrunners for the deal, which includes a make-whole call.

Proceeds will be used for general budgetary purposes.

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