Argentina

Argentina had attracted nearly $15bn of orders for its latest dollar issuance by Wednesday’s close, as both investors and bankers following the deal said they thought the sovereign may issue more than the $5bn it initially planned to sell.

Argentine energy company Pampa Energía clinched pricing that was “very competitive” versus peers on its debut bond issue, said EM syndicate bankers, as borrower-friendly conditions showed no sign of fading ahead of Argentina’s crucial sovereign bond issue on Thursday.

All seven new issues to emerge from Latin America last week ended Friday above their respective reoffer prices to reiterate the favourable conditions available to the region’s borrowers.

Argentina could not wish for better market conditions as it prepares its crucial first bond of 2017, said Lat Am bankers this week. After many sleepless nights for DCM bankers pitching the deal, the South American sovereign on Wednesday mandated bookrunners, writes Oliver West.

Fast growing Argentine energy company Pampa Energía will begin investor meetings on Tuesday as it plans a much anticipated debut bond sale to refinance loans used to purchase Petrobras’ Argentine operations last year.

Power generation company Genneia looks set to become the first Argentine company to debut in bond markets this year as DCM bankers predict a slew of new corporate issuers from the country in 2017.

Argentina’s resurgence in international bond markets helped JP Morgan end 2016 as the top firm in primary in Latin America bond markets, up from sixth place in 2015, according to Dealogic.

YPF, the Argentine state-owned oil and gas company, could return to bond markets next year after a busy 2016.

Bonds markets in Latin America were firmly in holiday mode this week but syndicate bankers appeared bullish about issuance prospects for 2017 after the region brushed off the US rates hike.

Aeropuertos Argentina 2000, the Argentine airport operator, is looking to return to bond markets in 2017 with a 10 year deal of up to $400m.

Bankers said that none of the three names in the visible Lat Am pipeline would be likely to issue any time soon as a sell-off in US rates brought sudden volatility to EM bond markets, even in economies not considered affected by a Donald Trump presidency.

Argentina’s return to international bond markets this year broke many records, and its after-market performance has been equally stunning. It has also changed investors’ concerns. Previously preoccupied with court rulings, an unpredictable government, legal technicalities and a curve comprising an assortment of complex instruments, bondholders now are looking at more conventional credit issues and can enjoy a normalised dollar curve with several liquid points. The buyside is now assessing inflation and inflation expectations, GDP growth and FDI, and — crucially — progress on the fiscal deficit.