Central America

Central American development bank Cabei began its funding for 2017 by issuing more than $100m-equivalent in niche currencies, the bank’s head of capital and financial markets told GlobalCapital.

Analysts believe that Belize’s third restructuring of the century could drag on long after the government’s target end-date of March after certain bondholders said they would reject a proposed amendment to the terms of its so-called “superbond”.

Multinational food company Sigma Alimentos is preparing ground for what is likely to be the first new issue from a Mexican borrower since Donald Trump became president of the United States.

Brazilian aircraft manufacturer Embraer and Guatemala-headquartered Central American Bottling Corporation (CBC) showed that Latin American bond markets had put the softness at the end of last week behind them with heavily oversubscribed trades on Wednesday.

Six Latin American issuers attracted more than $45bn of orders between them this week as the region’s bonds markets looked set to open Donald Trump’s term as US president in flying form.

Belize is asking bondholders to allow it to delay the amortisation of and reduce the coupon rate on its $526.5m 2038 bond in what the country’s financial secretary said would be the “mildest adjustment” to the notes that could make them “sustainable”.

Honduras’s first bond issue in more than three years capped a roaring week for Latin American primary markets, with seven borrowers raising more than $7.5bn between them, when the issue was priced with a negative new issue premium.

Central American sovereign Honduras will begin meeting fixed income investors on Friday ahead a potential 10 year dollar bond.

Years of sub-par growth may finally hurt the ratings of Latin America’s two strongest economies, after Fitch placed Mexico and Chile’s ratings on negative outlook.

It’s that time of year when analysts dust off their crystal balls and make predictions for the next 12 months. In December 2015 not many were forecasting that Britain would vote to leave the EU, and even fewer were betting on a Donald Trump presidential victory, so investors would be wise to treat such missives with caution. Political risk is a capricious beast, even for the most seasoned market observers.

Fitch has partially blamed Donald Trump’s election as US president for hurting Mexico’s economic prospects after it became the third major rating agency to place the sovereign’s credit rating on negative outlook this year.

Mexico’s Pemex put smiles on the faces of bankers and investors with a $5.5bn triple tranche bond issue on Tuesday, the first Latin American bond to be sold in the US since before the US election.