Americas

Cities and municipalities are some of the most suitable issuers for the green or socially responsible bond market, but the cost and effort could be too much to for some. Jonathan Breen reports.

Bondholders have given Banrisul a stronger response to its tender offer for subordinated debt than they gave Brazilian peer Banco BMG in the early bird phase, but not as overwhelming a response as they gave Banco Votorantim, as Brazilian banks look to repurchase expensive bonds.

The Argentine province of Neuquén said it would make a second attempt to sell a dollar-denominated bond “when market conditions are more stable and convenient”, after the region’s government did not approve the interest rates that investors were seeking.

Hopes of concerted action to tackle climate change have been dashed before, but many are daring to be confident about the Paris summit this December. Jon Hay reports.

An evolution is happening in emerging market issuers’ use of yen funding. For many years, many of them have only been able to issue Samurai bonds by using JBIC’s GATE (Guarantee and Acquisition toward Tokyo market Enhancement) programme, but steadily more of them are stepping up to standalone issuance. At the same time, benchmark borrowers are bringing along less established issuers from the same countries in their wake

With local currency devaluations hurting dollar bond issuers across Latin America, Peruvian sugar cane producer Corporación Azucarera del Perú (Coazucar) has launched a tender offer for up to $165m of international bonds.

Sellside bankers desperate to generate business in a stormy LatAm debt market will have been pleased. For as a lesson for issuers in the benefits of sacrificing a few basis points in the interests of getting a deal done, Colombia’s long 10 year on Monday was as good as they come.

Another torrid week for Brazilian credit had investors predicting the sell-off in the country’s assets had further to run despite some names looking cheap at first glance.

The expected deluge of high-grade issuance stumbled after a strong start as volatile market conditions sent issuers scampering to the sidelines.

Mondelez followed up its Swiss franc debut in March with a second successful outing this week, taking the total raised in the currency this year to Sfr1.075bn.

Yankee and US banks dictated the pace of dollar supply as they moved early to print TLAC-friendly trades ahead of the publication of the final regulatory rules.

UBS pulled in $13bn of demand for a holdco senior debut in dollars this week, which for some bankers showed the gulf between attitudes towards loss-absorbing debt on either side of the Atlantic.