Central America

Latin America DCM bankers are gearing up for a calmer period in primary bond markets as first quarter earnings blackout periods near, after two companies jumped on an improving tone at the end of last week to sell rare Friday deals.

Mexican food company Grupo Bimbo proceeded with a 30 year bond issue on Wednesday despite a US inflation reading that sent Treasury yields to their widest levels in a month. A strong bid from US investment grade buyers ensured a bumper order book, but some observers were surprised that the issuer had not delayed its deal in the face of a tricky market.

Inversiones Atlántida (Invatlan), the Central American financial services group that owns the largest bank in Honduras, is looking to raise $300m of senior secured bonds, it told fixed income investors this week.

Four Latin America and Caribbean companies sold new issues in the dollar market at very tight looking levels on Thursday, as investors continue to feel pressure to put to cash to work amid extremely high liquidity.

A committee of Belize’s largest bondholders said on Wednesday that there was a “lack of transparency” in the country’s debt restructuring proposal, claiming that Belize failed to address several creditor concerns during confidential negotiations. The committee said bondholders should not bear the costs if Belize decides to reject an IMF programme.

Mexican industrial parks operator Corporación Inmobiliaria Vesta began investor calls on Monday as it looks to become the latest Latin American issuer to join the sustainability-linked bond (SLB) club. Though bankers continue to see LatAm companies obtaining pricing benefits from SLBs, a handful of recent deals are trading below re-offer in secondary.

After Mexican conglomerate Femsa became the first issuer from the Americas to sell a sustainability-linked bond (SLB) in euros last week, Latin America bond origination bankers say they expect the region’s companies to continue to embrace the format.

Chilean miner CAP and Mexican car parts supplier Metalsa on Thursday became the latest in a string of Latin American companies to price dollar bonds not only at the tight end of guidance, but inside the indicated range, as bankers say investors are being coy with bookrunners about their pricing expectations.

The Mexican conglomerate Fomento Económico Mexicano (Femsa) was in the market for sustainability-linked bond in euros on Thursday, marking the latest in a string of innovative trades from the Latin America.

Bonds issued by Mexican payroll lender AlphaCredit lost around half their value on Wednesday after the company revealed a correction in its accounting of derivatives positions would lead to an impairment charge of Ps4.1bn ($206m). Investors and analysts said this would take the non-bank lender’s equity into negative territory, suggesting default was a growing inevitability.

Scotiabank has hired a new head of syndication in New York, GlobalCapital understands.

Colombian lender Banco Davivienda and Central American renewable energy company CMI Energía both priced new issues inside the ranges indicated at guidance on Thursday, as Latin American bond markets took advantage of a strong bid for US Treasuries.