Americas

With the most business-friendly candidate boasting a lead of at least eight points in opinion polls ahead of the second round of Argentina’s presidential elections this Sunday, bankers are hoping Argentina can once again play an important role in Latin American bond markets.

The leveraged finance market suffered an unpleasant shock this week, when $5.6bn of loans and bonds for the Carlyle Group’s acquisition of Veritas Software had to be pulled. Bankers were left blaming market sentiment, an aggressive structure — and each other, write Max Bower and Victor Jimenez.

The dollar market showed its appetite for diversity this week as Société Générale printed the first 30 year tier two bullet by a French bank and ING printed its debut green bond.

The US dollar bond market is braced for a deluge of issuance as borrowers look to wrap up deals ahead of an anticipated Fed funds rate rise in December.

Mondelez International, the US snacks group that owns Cadbury, satisfied its taste for long dated sterling debt on Tuesday, reaching far out along the curve to issue a £400m 20 year bond.

Shares in Solvay, the Belgian chemical company, closed at €103.65 on Thursday, up 3.1% since Monday night, after shareholders voted to approve the €1.5bn rights issue to finance its takeover of Cytec Industries, the US maker of advanced materials.

La Caisse Centrale Desjardins du Quebec (CCDJ) issued a €1bn five year covered bond on Thursday which offered the widest spread for a Canadian bank this year, but with little new issue premium.

Fitch upgraded Mexican auto parts supplier Tenedora Nemak from BB to BB+ on Wednesday, bringing the issuer up to the highest level of sub-investment grade with all three major rating agencies.

Bankers and investors on Wednesday said the failure of Veritas Technologies' $2.5bn bond deal — which was pulled along with an accompanying $3.3bn loan package on Tuesday — showed evidence of familiar weaknesses and errors in the European high yield market.

Danske Bank in Finland, formally known as Sampo Housing Loan Bank, has mandated leads for its first covered bond since September 2012. Meanwhile, La Caisse Centrale Desjardins du Quebec (CCDJ) has also mandated.

Citigroup is looking to buy back up to £485m equivalent of senior and subordinated debt across four senior and subordinated securities in sterling and euros.

Goldman Sachs, HSBC and Morgan Stanley will lead Mexican television broadcaster Grupo Televisa’s next international bond, although there is no indication yet of when it will happen.