Americas

The UK’s possible exit from the European Union is not the only factor to blame for two Latin American borrowers deciding to wait to issue bonds this week, said bankers covering the region.

The decision from the Argentine province of Salta to wait a few days before returning to bond markets this week (see separate story) did nothing to dampen bankers’ enthusiasm for Argentina as three more borrowers joined the new issue pipeline.

Panic around the rising likelihood of the UK choosing to leave the European Union in a referendum on June 23 sent European and US markets into turmoil this week, with volatility jumping as traders struggled to prepare for the two possible outcomes.

The dollar market ended its record-breaking run of issuance this week as uncertainty around the outcome of the UK referendum vote caused buyers to take flight and spreads to widen.

Reliance Big Entertainment US has approached the Asian syndicated loan market for a $100m deal, bringing a rarely seen film production name to lenders. While there are some concerns over its cash flows, the borrower is mitigating those fears with two credit enhancements. Shruti Chaturvedi reports.

Foreign bondholders in Usiminas, the Brazilian steel company, may yet make it out unscathed after the company reach a debt restructuring agreement with its bank lenders and local bondholders.

Petrobras made clear its desire to buy back as much of its 8.375% notes due 2018 as possible on Wednesday after extending final deadline of a tender offer for the notes for a second time.

Reliance Big Entertainment US, part of India’s Reliance Anil Dhirubhai Ambani Group (Reliance ADAG), is tapping lenders for a $100m three year trade with one bank at the helm.

The European Commission will begin using fixed income pricing data and liquidity metrics from Markit, the financial information services firm, in its research and policymaking activities.

A confectionary company and the third largest province in Argentina are set to ensure that the country remains the centre of new issue activity in Latin America.

Panelists at Global ABS agreed that growing interest in environmental impact and attractive returns on bonds are helping the asset class catch investor interest from both sides of the pond.

There is no use crying over missed deadlines, or throwing around blame. Europe will not meet the September 1 effective date for imposing margin on uncleared swaps, so US regulators now have a tough call to make on whether to delay as well.