Americas

The eventful US mid-term elections have unlocked primary equity markets, with large block trades emerging after Tuesday’s vote. With the US political dynamic transformed, following the Democrats taking the House of Representatives, market practitioners are hoping the prospect of political gridlock in Washington will calm markets and make for better issuance conditions between now and the end of the year. Sam Kerr reports.

American pharmaceutical company Allergan, best known for its cosmetic drug Botox, returned to Europe on Thursday for a new three tranche corporate bond deal. The €1.7bn transaction fell short of the company’s debut €2.7bn deal, but was a filip for a market that had been silent the previous day due to the US mid-term elections.

Export Development Canada plans to sell its first Sonia-linked bond in 2019, as it adapts to a future without Libor.

New York-listed aircraft leasing company Aircastle, owned by Japan's Marubeni Corp, has returned to the loan market for a $250m revolving credit facility.

A semblance of stability in Latin American bond prices allowed Panama City’s airport, Aeropuerto Internacional de Tocumen, to become the second credit from the region in two days to tap dollar markets.

Bonds issued to build Mexico City’s now cancelled new airport have risen from last week’s lows after as analysts declared the risk of default to be very low after the incoming president met with airport contractors on Monday.

Inline warrants are growing in popularity as a means of generating returns when volatility is low.

A pair of rare euro bonds from sovereign emerging markets borrowers hit the market this week, much to the approval of investors who said the deals provided “good value”.

European markets rose on Wednesday morning, a day after the US mid-term elections in which the Democratic Party regained control of the US House of Representatives, curtailing the amount of power concentrated in the Republicans and with president Donald Trump. There are hopes it could lead to a final few deals before the year ends.

Bank of Nova Scotia (BNS) offered Swiss investors a rare chance to buy its debt with a seven year covered bond from a rare name on Tuesday.

Despite volatile market conditions that usually make local currency issuance a tough sell, some bond investors say they have their eyes peeled for a Peruvian nuevo sol trade after the sovereign completed the buy-back of dollar debt on Tuesday.

Pulp and paper producer Suzano Papel e Celulose raised $500m of 30 year debt on Tuesday two months after first mooting the idea, putting it closer to completing the financing of its takeover of fellow Brazilian company Fibria.