Bloomberg News

Credibolsa Bets on Bond Zeal to Revive First Peru IPO in a Year

January 29, 2012

Jan. 27 (Bloomberg) -- Andino Investment Holding SA is counting on improved investor sentiment generated by Peru’s first overseas bond issuance since 2010 to help push through a share sale next week, according to the firm managing the deal.

“There’s a tailwind blowing in our favor,” Jorge Monsante, chief executive officer of Credibolsa SAB, the country’s largest brokerage, said by telephone from Lima today. “There’s a lot of interest from local insurance companies and mutual funds in Chile and Colombia.”

Peruvian dollar bond yields fell the most in three weeks yesterday and the country’s benchmark stock index reached a five-month high after Peru sold $1.1 billion in sovereign bonds and companies Volcan Cia. Minera SAA and Camposol Holding Plc raised a combined $725 million in debt markets. Andino last night rescheduled its initial public offering to Feb. 2 after postponing the transaction twice earlier this month.

The port operator will take orders for the shares through 2 p.m. on Feb. 2, according to a statement posted on the website of the Lima securities exchange that didn’t give a new reference price. Andino originally planned to raise $60 million from the sale of as many as 35 million shares for 4.70 soles each.

The IPO would be Peru’s first since fishmeal producer Pesquera Exalmar SAA sold $100 million of stock in November 2010.

At least four more companies will sell shares for the first time in Lima this year, Monsante said. Credibolsa will manage a $63 million new share offering by Caterpillar Inc. distributor Ferreyros SA in the first quarter.

The yield on Peru’s 5.625 percent dollar bond due in 2050, little changed today, slid five basis points, or 0.05 percentage point, to 5.28 percent yesterday after the issuance and as emerging-market assets gained on a pledge by the U.S. Federal Reserve to keep borrowing costs low through 2014.

Peru’s IGBVL equity index climbed 1.1 percent yesterday to the highest level since Aug. 2. The gauge advanced 0.6 percent at 12:28 p.m. local time today.

Peru’s economy: {TNI COLOM ECO <GO>} Stories on Peruvian stocks: {NI PSS <GO>} Top Latin America stories: {TOPL <GO>} Company website: www.andino.com.pe

--Editors: James Attwood, Richard Richtmyer

To contact the reporter on this story: Alex Emery in Lima at aemery1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus