Central America

Crédito Real, a Mexican consumer finance company, is set to debut in the Swiss franc bond market in the coming weeks.

After Latin America made a record start to 2018, bankers expect primary supply to keep flowing at a strong pace —despite investors already fretting about the tight pricing on new deals.

Four Latin American corporates priced a total of $3bn of new debt on Thursday, as investors said they were grateful for the chance to get their hands on new paper but not overly enthused about the yields on offer.

Mexico issued in euros for the first time since 2016 on Tuesday, coming tight to its dollar curve and wrapping up its external funding for needs for the year already.

Mexican non-bank lender Unifin Financiera is plotting a subordinated perpetual deal, according to bond market sources, after Peru’s Interbank became the latest Latin American financial name to issue on Wednesday.

Bankers following Mexico’s second trade in less than a week said that the sovereign had managed to price its euro deal impressively tight to its dollar curve as the government wrapped up its funding needs for the year.

The United Mexican States has released price guidance on its first euro bond for over a year.

The head of Mexico’s public credit office told GlobalCapital that the Latin American sovereign had been particularly keen to set a strong precedent for the country’s issuers after it kicked off a potentially volatile year with a $3.2bn blowout dual-tranche.

A new dollar benchmark could be on the cards for multilateral lender Central American Bank for Economic Integration (Cabei), the bank’s CFO told GlobalCapital, as the issuer looks to increase its appeal to traditional SSA investors by gaining double-A ratings.

Mexico returned to its habitual role of opening the Latin American bond markets for the year on Wednesday with a $2.6bn trade including a tap of its 2048s to make the most of an exceptionally flat curve.

A new dollar benchmark could be on the cards for multilateral lender Central American Bank for Economic Integration (Cabei), the bank’s CFO told GlobalCapital on Wednesday, as the issuer looks to increase its appeal to traditional SSA investors by gaining double-A ratings.

Bankers and investors covering Latin America were grateful this week for the end of a hectic year in which unprecedented levels of issuance have sprung from the region, with strong conditions set to continue in 2018.