The recent surge in oil prices, which has left oil companies awash with cash, does not mean that Latin America's most consistent securitization asset class - future flows of oil revenues - will dry up, as several Latin oil companies are believed to be talking to their bankers about possible deals.
Indeed, the high price of oil and the improved fundamentals for parts of Latin America may stimulate issuance, analysts said.
Brazilian oil company Petrobras, a regular securitzer, for example, is believed to be have mandated BBV, Citibank and Salomon Smith Barney to arrange an issue worth between $300 million and $500 million.
The deal will be backed by future sales of bunker fuel and fuel oil and will have a maturity of around seven years, a Petrobras official said. It will be at least one tranche, though more will be added if there is demand, the official added.
Analysts added that Petrobras is in good shape to issue further deals, as thanks in part to the high price of oil it has considerable cashflows. Investors are also thought to be impressed with Brazilian fundamentals generally, and Petrobras' management, in particular.
The official confirmed that more deals are penciled in for next year