EM LATAM CREDIT: New Issue: Chile's Celulosa Arauco (CELARA; Baa3 /BBB- /BBBneg)
"NEW $ DEAL: CELULOSA ARAUCO Y CONSTITUCION SA BMARK 7Y, +260A" - BBG
IPT 7Y: T + 260 bps Area
FV: T + 235 bps Area
• Chilean paper company Celulosa Arauco proposed the issuance of a USD benchmark size senior unsecured 7-year sustainable bond.
• CELARA is owned by the holding company Copec. Copec is seeking to fund through its Celulosa Arauco subsidiary a large investment project in Brazil that we reported on a few days ago. Please see the link for further info:
https://mni.marketnews.com/3EIk7A7
• CELARA 2030s, last quoted at T+199bps, were about 30bps wider than the other large Chilean paper company CMPC (CMPCCI; Baa3 /BBBneg /BBB) and 13 bps wider than Brazil paper company Suzano (SUZANO; Baa3pos /BBB- /BBB-pos). CMPC’s curve for a 2-year extension is worth about 33 bps, which would put a new 7-year CELARA at T+232bps. We also consider AES Andes as a ‘BBB-‘ credit owned by a large holding company AES that recently issued a 7 year at T+210bps, last quoted T+224bps.
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US: MNI POLITICAL RISK - Markets Brace For 'Liberation Day' Tariffs
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- President Donald Trump has two Executive Order signing ceremonies on his agenda today. Journalists will be invited in for the second session, at 17:30 ET 22:30 BST.
- Multiple reports suggest that Trump may be pressing his team to devise an aggressive 'Liberation Day' tariff plan that applies to more countries than anticipated.
- Trump’s trade advisor, Peter Navarro, said tariffs could net the Treasury Department $600 billion a year for a decade.
- The Senate is expected to vote on Tuesday on a Democratic resolution to undo Trump’s tariffs on Canadian goods.
- The Trump administration's economic agenda will be buoyed by a drop in the price of eggs.
- Senate Republicans are expected to begin procedural votes on a compromise budget resolution as soon as Wednesday.
- Trump is reportedly considering letting income taxes on the “very highest earners” rise in return for cutting taxes on tips.
- Florida will go to the ballot box tomorrow to vote in special elections to fill two vacant House seats. Voters in Wisconsin will vote in a bellwether state Supreme Court race.
- Trump is considering applying secondary tariffs on countries that buy Russian oil if he determines Russian President Vladimir Putin is attaching unreasonable demands to ceasefire negotiations.
- Iran has rejected direct negotiations with the US over its nuclear programme.
- Poll of the Day: Most US voters still see the US-Canada relationship as friendly.
Full Article: US DAILY BRIEF
GLOBAL POLITICAL RISK: Week Ahead 31 March-6 April
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MNI's Political Risk team has published its Week Ahead article, looking at some of the major political events scheduled to take place over the next seven days. Includes information on US President Donald Trump's imposition of reciprocal tariffs on 'Liberation Day', French far-right politician Marine Le Pen's conviction and ban from running for public office that has upended the 2027 presidential election race, and a meeting between Russia and China's foreign ministers in Moscow.
Full article attached below:
PIPELINE: Corporate Bond Roundup: DBJ 5Y SOFR on Tap
- Date $MM Issuer (Priced *, Launch #)
- 03/31 $Benchmark DBJ 5Y SOFR+62a
- 03/31 $Benchmark Japan Tobacco +3Y, +5Y, +10Y investor calls
- 03/31 $Benchmark Gold Fields 10Y investor calls
- 03/31 $Benchmark Caf perpNC5.5 investor calls
- Expected Tuesday:
- 04/01 $Benchmark NRW Bank 5Y SOFR+49a
