Argentina

The Province of Buenos Aires gave a taste of the possibilities available in Argentina’s domestic market on Tuesday with an innovative peso bond targeted at international investors that left the province’s undersecretary of finance more than satisfied.

The Province of Buenos Aires showed the resilience of demand for Argentina as it sold a $950m equivalent peso denominated bond mainly to international buyers the day after the currency hit its all-time weakest level against the US dollar.

Candy manufacturer Arcor is planning to tap its dollar-denominated 2023s for up to a further $150m in a deal that would likely sweeten the liquidity in the existing bonds.

The Province of Buenos Aires could proceed with its planned peso-denominated bond as soon as Tuesday, according to an investor in Buenos Aires.

Market volatility has led the Province of Buenos Aires to pause ahead of a planned $500m-equivalent peso-denominated bond issue, but it will continue to monitor market conditions.

Brazil and Trump-related turbulence left the Province of Buenos Aires waiting ahead of a planned peso-denominated bond, though bankers say Argentine issuance should resume shortly.

The Province of Buenos Aires will look to sell around Ap7.5bn ($481m) of peso-denominated five year bonds in the coming days but has surprised some market participants by opting for a domestic law bond with a floating interest rate.

The provinces of Buenos Aires and Mendoza are planning to join the list of Argentine issuers opting to sell peso-linked debt after recent deals by YPF and Banco Macro.

A blow-out deal from Argentine energy company Capex reassured Latin American bond bankers that the market had shrugged off a handful of deals that did not run as smoothly as hoped.

Latin American bankers see a calmer period ahead for corporate new issues and some companies are already plotting deals for later in the quarter.

Argentine energy company Capex and Mexican financial Unifin showed that conditions were as strong as ever in Latin American bond market as both high yield names notches blow-out new issues.

The emerging market bond pipeline remained strong this week with Turkish lender Finansbank the latest CEEMEA name to join the fray, after the borrower announced a one day roadshow for Wednesday. Meanwhile, Latin American borrowers are beginning to encounter some investor push-back.