Americas

Brazilian cosmetics group Natura sold a sustainability-linked bond (SLB) on Monday offering an exceptionally high coupon step-up of 65bp if it does not meet sustainability targets. Though the greater increase was to compensate for the shorter time between the potential step-up and maturity than on most SLBs, it succeeded in grabbing the attention of EM bond buyers.

South Africa's Investec has launched a proprietary secondary loan trading desk in New York, having recruited a senior trader to lead it.

After Mexican conglomerate Femsa became the first issuer from the Americas to sell a sustainability-linked bond (SLB) in euros last week, Latin America bond origination bankers say they expect the region’s companies to continue to embrace the format.

Puerta de Hierro, a toll road project in Colombia’s Caribbean region, has tapped a combination of Colombian, Latin American and international investors to sell a Colombian peso inflation-linked social bond amid a wave of ESG-related issuance in Latin America.

Goldman Sachs made its second visit to the Maple market this year on Thursday. The Canadian dollar market is enjoying its busiest year in four years for offshore issuance.

Chinese health insurance and healthcare crowdfunding platform Waterdrop has kicked off pre-deal investor education for its US listing, according to a source close to the IPO.

BOC Aviation has sold a $750m bond through its US subsidiary, pricing its third dollar outing of the year at wider levels than some fair value estimates from analysts.

Chilean miner CAP and Mexican car parts supplier Metalsa on Thursday became the latest in a string of Latin American companies to price dollar bonds not only at the tight end of guidance, but inside the indicated range, as bankers say investors are being coy with bookrunners about their pricing expectations.

Corporate bond issues came at a healthy clip in the US market this week, despite earnings blackouts, as investors showed a preference for highly rated paper.

Emerging markets bond buyers and issuers are regaining confidence as US Treasury volatility falls, with issuance in CEEMEA and Latin America having picked up in recent days and a pipeline building.

The Province of Ontario ended an absence of almost four years from the Swiss franc market this week to land a 12 year note at fair value. Elsewhere, Valiant Bank and Pfandbriefbank kept the domestic market ticking over with a handful of covered deals.

Canadian Imperial Bank of Commerce returned to the euro covered bond market for its first deal since March 2020, issuing a highly subscribed €1bn eight year flat to fair value this week. At the same time Laurentian Bank said that its programme had received regulatory approval.