Americas

The Latin America primary bond market was quiet this week thanks to dollar investors instead enjoying the US Independence Day holiday, but bankers say sentiment is at its strongest at least since January 2018 as several of the region’s issuers lined up roadshows.

Canadian Imperial Bank of Commerce (CIBC) issued its first euro covered bond in well over a year on Wednesday and was able to reap the benefit of its rare appearance by pricing a €1bn eight year flat to its curve.

It has been a sensational couple of weeks in emerging markets, with money flooding in and asset prices climbing ever higher, but the influx of new money is driving down yields further than some investors feel is justified.

The G20 meeting in Japan ended as well as those in markets could have expected. The US and China may have agreed to delay additional tariffs against the other but none were removed either. Investors are beginning to plan for a more sustained period of hostility between the two countries.

Colombian utility Empresas Públicas de Medellín (EPM) will begin fixed-income investor meetings on Thursday and could issue dollar bonds for the first time in 10 years as part of a $1bn-equivalent deal to refinance debt.

Mexican leasing company Docuformas is likely to turn to bond markets in the coming weeks, GlobalCapital understands, after announcing a tender offer and consent solicitation for its existing notes.

Bond market participants in Argentina say that more issuers from the country could look to pre-empt election-related uncertainty and take advantage of benign fundraising conditions after Pampa Energía followed in YPF’s footsteps with a 10 year deal on Tuesday.

Canadian Imperial Bank of Commerce (CIBC) has mandated leads for its first euro covered bond since January 2018.

Bond investors will have a chance to give a further indication of their appetite for Argentine risk as Pampa Energía looks to follow in YPF’s steps and continue to reactivate the primary markets from the country.

The much anticipated G20 meeting between Chinese president Xi Jinping and US president Donald Trump in Osaka brought good news to Huawei, US farmers, US high tech companies, and Chinese stock markets. However, key conflicts remain unsolved.

Hutchison Healthcare Holdings has taken home $288m from an enlarged sell-down of shares in Hutchison China MediTech (Chi-Med).

A majority of Mexican car parts maker Metalsa’s bondholders agreed to amend parts of the indenture to grant the company more flexibility regarding sales and mergers.