Central America

A record year for Latin American bond issuance could end quietly after a sharp softening in market conditions, although certain bond bankers continue to push clients to issue as soon as possible.

Mexican non-bank lender Crédito Real is on the road looking for a perpetual hybrid bond even as other issuers delay deals or roadshow announcements amid weaker market conditions.

Neither Brazilian pulp and paper company Fibria nor Mexican telco business Axtel were able to price new deals at the tight end of guidance on Thursday as syndicate bankers said a much-needed and predictable market correction had finally begun.

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The sterling corporate bond market took until Wednesday to join the issuance frenzy the euro market had enjoyed in the first half of the week, but three deals in two days reminded issuers and investors that it is still an option to be considered into the end of 2017.

On Thursday, the sterling corporate bond market reminded participants it was still going strong after the euro market had dominated the first half of the week. Petroleos Mexicanos, also known as Pemex, and Western Power Distribution followed the success of Wednesday’s deal from Manchester Airport.

The world’s largest bread maker, Grupo Bimbo, returned to bond markets on Tuesday after a three year absence. Its 30 year bond was sold mainly to US investment grade buyers, despite the issuer’s Mexican nationality.

Axtel, the Mexican telecoms company, is meeting investors for a planned senior unsecured bond issue. Investors say the firm is almost unrecognisable from the one that carried out a distressed debt exchange in 2013.

Mexican baked goods company Grupo Bimbo and a Panamanian bank are ready to bring variety to Latin America’s bond market next week after meeting bond investors this week.

BBVA is shuffling several senior bankers in its global project finance team, after its global head of energy project finance departed to take up a role at ING Capital in New York.

Grupo Bimbo, the Mexico-headquartered baked goods group, will begin meeting fixed income investors on Wednesday ahead of what would be its first cross-border issuance in over three years.

A potential Costa Rican colón bond issue is arguably the most eye-catching of a flurry of global local currency transactions planned by Latin American borrowers as bankers say the bull market could hit new heights.