Americas

In the second part of the GlobalRMB’s outlook on renminbi internationalisation in 2017, market participants discuss the far-reaching impact of the recently-established New York hub.

Argentina could not wish for better market conditions as it prepares its crucial first bond of 2017, said Lat Am bankers this week. After many sleepless nights for DCM bankers pitching the deal, the South American sovereign on Wednesday mandated bookrunners, writes Oliver West.

Brazilian state-owned oil company Petrobras cemented its popularity as an improving credit story with a hugely oversubscribed $4bn new issue that flew above par in secondary markets, triggering a great week for Lat Am new issues and reiterating the renewed optimism around Latin America’s largest economy.

Honduras’s first bond issue in more than three years capped a roaring week for Latin American primary markets, with seven borrowers raising more than $7.5bn between them, when the issue was priced with a negative new issue premium.

Guarantor: Canada

More dollar deals are expected next week following a searing few days for trades in the currency, but despite bumper books and deal sizes, some in the market feel there is still some price discovery work to do. Meanwhile, US president-elect Donald Trump made his presence felt on the issuance calendar.

The socially responsible investment market for public sector bond issuers is shaping up for another busy year, with one agency planning a debut print in the next few months.

Broadcom printed the biggest corporate trade of the year so far as yield hungry investors snapped up triple-B rated names ahead of US president-elect Donald Trump’s inauguration next week.

As many as eight covered bonds were launched across three currencies this week, the vaguely discernible pattern suggesting better interest for the larger deals with intermediate maturities and particularly those from non-eurozone issuers where liquidity is most likely to be better.

Investors saw Brazilian pulp and paper company Fibria Celulose’s new 10 year green bond pricing very tight to its existing curve, despite the company having to remove controversial covenant language after it proved unpopular with investors.

Four private sector corporates from Latin America sold dollar denominated bonds this week, although borrower-friendly market conditions were not enough to allow the issuers to get away with more aggressive covenant language.

Export Development Canada showed on Wednesday that despite some big deals this year in fives, there is still plenty of demand in the three year part of the dollar curve as it took the rare step of increasing a deal from its initial size target. The trade came as a trio of other dollar deals hit screens.