[LATAM CLOSE]: Three Trades Stave Off "Goose Egg" On DeepSeek Selloff Monday

On this Monday session marked by a stock selloff prompted by DeepSeek despite solid numbers reported as per Chicago Fed National Activity Index (December 0.15 vs. -0.06 f/c) and Dallas Fed Manufacturing Activity for this month (14.1 vs. 0.0 f/c), fixed income markets were mostly silent, with LatAm producing three deals.

Peru-based issuers Kallpa Generacion S.A. and Banco Internacional del Peru SAA Interbank combined for two trades totaling $850m. Kallpa announced a 7yr sr unsec offering sized at $500m (WNG), while Interbank announced a 10.25nc5.25 Tier 2 subordinated offering which ultimately launched at $350m.

As this column has mentioned, January produced frequent flyers, and one of them – Mexico – returned after being the first credit to sell new paper in the new year. This time, Mexico sold a two-part EUR-denomianted trade sized at EUR 2.4bln. With Mexico’s sizable trade, today’s tally of $3.37bln pushed 2025 volume to $28.056bln. Already, January 2025 is the fourth-busiest month in LatAm issuance history, with only the record-holding January 2020 tally of $37.006bln, last January’s $31.184bln, and January 2018’s $29.858bln ahead. With the pipeline still loaded – and with the addition of Saavi Energia today – LatAm volume appears headed past $30bln.

Even if LatAm sees no further trades this month, LatAm is continuing the solid momentum which characterized 2024 as a year of recovery after two very lean issuance years.

By how much further LatAm volume increases by the time Monday, February 3 arrives remains to be seen.

Here’s today’s pricing rundown.

KALLPA GENERACION S.A.
$500m (WNG) Kallpa Generacion S.A. (KALLPA) 144A / Reg S 7yr sr unsec notes due January 30, 2032. Via DB, JPM, Santander (B&D). Baa3/NR/BBB-. UOP: (i) Fund the Tender Offer and to pay related fees, premiums, and expenses. If, following the consummation of the Tender Offer, any 2026 Notes remain outstanding, remaining net proceeds will be used to redeem such 2026 Notes via Make Whole Call and (ii) Funding the construction of Sunny project, including the repayment of outstanding borrowings under a Bridge Loan Facility. The remainder, if any, will be used for general corporate purposes. Optional redemption: make-whole call, 2 months par call. Denominations: $200k x $1k. Listing: Singapore Stock Exchange. Marketing: www.dealroadshow.com | Code: KALLPA2025. Sales into Canada: Yes - via exemption. ISINs: Reg S / 144A): USP6040KAC10 / US48344FAB67; CUSIPs: (Reg S / 144A): P6040KAC1 / 48344FAB6. S/D: 1/30 (T+3).

BANCO INTERNACIONAL DEL PERU SAA INTERBANK
$350m Banco Internacional del Peru SAA Interbank (BINTPE) 144A / Reg S 10.25nc5 Tier 2 subordinated notes due April 30, 2035. Baa3/BB+. Via GS, JPM, Santander. UOP: Redeem Interbank’s outstanding 4% Tier 2 notes due July 2030 and the remainder, if any, for general corporate purposes. This does not constitute a notice of redemption. Optional redemption: make-whole call. Denominations: 150k x 1k. ISIN: US05968DAG51 (144A) / USP13435AG03 (Reg S); CUSIP: 05968DAG5 (144A) / P13435AG0 (Reg S). Pricing today. S/D: 1/30 (T+3).

UNITED MEXICAN STATES

A EUR2.4bn two-part SEC Registered Senior Unsecured issue, expected ratings Baa2 (Negative) / BBB (Stable) / BBB- (Stable) (Moody’s / S&P / Fitch), is now priced for United Mexican States (“Mexico”). Joint Bookrunners are BNP PARIBAS, Credit Agricole, Deutsche Bank, HSBC (B&D), Societe Generale.

+1: EUR1.4bn; due 4 May 2033; cpn 4.625%; fpr 99.057; spread m/s+230bp, equivalent to +234.1 over the DBR 2.3% Feb-2033; yield 4.769%; MWC @ B+35bp, ISIN XS2991917530

+2: EUR1bn; due 4 May 2037; cpn 5.125%; fpr 99.525; spread m/s+265bp, equivalent to +254.4over the DBR 4.00% 1/4/2037; yield 5.181%; MWC @ B+40bp, ISIN XS2991917613

Common terms: Fees undisclosed. Pay date 4 February, short first coupon. Listing Luxembourg Stock Exchange (Euro MTF). Denoms 100k+1k. State of New York law. Optional Redemption: Make-Whole Call; 3-month + Par Call. Use of Proceeds: General Budgetary Purposes of the Government of Mexico (see Preliminary Prospectus Supplement)

Target Market: The manufacturer target market (MiFID II and UK MiFIR product governance) is eligible counterparties and professional clients only (all distribution channels).

Updates:

(1) IPTs: EUR bmk 8yr @ MS+255bps area, EUR bmk 12yr @ MS+ 290bps area

(2) Guidance: EUR bmk 8yr @ MS+235a, EUR bmk 12yr @ MS+270a

(3) Final terms: EUR1.4bn 8yr @ MS+230bps, EUR1bn 12yr @ MS+265bps, from MS+270a guidance, MS+ 290bps area IPTs

LATAM PIPELINE

GEOPARK LIMITED
GeoPark Limited (NYSE: GRPK) ("GeoPark" or the "Company"), rated B+ (Stable) by S&P and B+ (Stable) by Fitch, a leading independent Energy company with operations in Latin America, including Colombia, Ecuador, Brazil, and following the expected acquisition of four unconventional hydrocarbon blocks in Vaca Muerta, in Argentina, has mandated BTG Pactual (Logistics), Deutsche Bank, and J.P. Morgan as Joint Bookrunners to arrange a series of virtual and in person fixed-income investor meetings in New York starting on Tuesday, January 21st, 2025. A USD-denominated, 144A/Reg S senior unsecured benchmark-sized bond offering with a 5- to 7-year maturity may follow, subject to market conditions. Concurrently, GeoPark has announced an offer to purchase for cash any-and-all of its outstanding 5.500% Senior Notes due 2027, expiring on Monday, January 27th, 2025 (5:00 PM NYT).

The Company will be represented by:
Andres Ocampo – Chief Executive Officer
Jaime Caballero – Chief Financial Officer
Martin Terrado – Chief Operating Officer
Maria Catalina Escobar – Shareholder Value and Capital Markets Director
Diego Gully – Capital Markets Director

Investor Login Details: URL: www.netroadshow.com. Entry Code: GPRK2025. Direct Link: https://www.netroadshow.com/event/GPRK2025.

ATP TOWER HOLDINGS, LLC
ATP Tower Holdings, LLC ("ATP"), one of the largest independent providers of telecommunications and digital infrastructure in the Andean region, consisting of Colombia, Peru, Chile, Ecuador and Paraguay, has mandated Goldman Sachs & Co. LLC and J.P. Morgan as Global Coordinators and Joint Bookrunners, and Deutsche Bank Securities and Scotiabank as Joint Bookrunners, to arrange a series of fixed income investor calls which started on Monday January 21, 2025. A USD-denominated short to intermediate tenor benchmark-sized Senior Secured Notes offering with expected ratings of Ba3 by Moody’s and BB- by S&P may follow, subject to market conditions. An any-and-all cash tender offer targeting ATP's 4.050% Senior Secured Notes due 2026 has been announced, subject to the terms and conditions specified in its offer to purchase dated as of January 21, 2025.

SAAVI ENERGIASaavi Energia, the largest private power generator in Mexico in terms of permitted capacity, with expected ratings Ba2 by Moody’s and BB- by Fitch, has mandated JPMorgan, Mizuho, Scotiabank and SMBC Nikko as Joint Global Coordinators and Bookrunners to arrange a series of virtual fixed-income investor meetings commencing on Jan. 27. Subject to market conditions, a senior unsecured 10NC5 USD-denominated 144A/Reg S bond offering may follow. JPMorgan will be coordinating logistics.

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