Americas

Bankers covering Latin America are optimistic about the prospects for primary supply from the region this week, with Mexican names the top picks to test the market.

Fitch has downgraded a series of project bonds issued by Odebrecht’s oil and gas subsidiary for the fifth time this year following the early termination of an oil rig contract by Petrobras.

This week began with three small euro offerings on screens from Landsbankinn, Carrefour Banque and NordLB as investors and issuers remained defensive after a recent run of gains in equities was met with a loss on Monday.

Royal Bank of Canada launched a €1bn three year floater on Tuesday, adding a euro trade to its recent activity in dollars and sterling before it enters a blackout period in November.

The euro FIG market may lose the business of some US banks in the looming results reporting season, because it can’t compete with the depth of demand on offer in dollars.

As the primary US banks prepare to release earnings for the third quarter there is little sign of panic in options markets despite overwhelmingly negative expectations.

Uruguay finance minister, Danilo Astori has told GlobalCapital that the country will mandate banks for a global bond in the coming days, with at least three Latin American governments preparing to raise international debt before the year is out.

China’s economic slowdown and the collapse of commodity prices have taken their toll on Latin America, which is now moving towards negative growth this year, according to the IMF and the World Bank.

Two Yankee issuers enjoyed the full attention of investors amid improving market conditions this week.

SumitG bears some striking improvements to Figsco, a similarly structured triple recourse deal that never made it to the market. These include a simpler guarantee, better transparency, cleaner collateral and more of it, as well as more frequent third party checks. But ultimately investors may only need to take a view on its recourse to Sumitomo Mitsui Trust Bank’s €320bn balance sheet.

Banco ABC Brasil this week became the fourth Brazilian lender and the sixth issuer from the country in a month to launch a tender offer for existing debt as low dollar prices make bond buybacks attractive.

Mexican green financing may get a lift on two fronts as the country moves towards its target of having 35% of its energy come from renewable sources by 2024.