Central America

Pemex looks set to return to the Swiss franc market for the first time in three and a half years after announcing plans to meet investors in Switzerland next week.

Mexican development bank Banco Nacional de Comercio Exterior (Bancomext) will meet bond investors between Wednesday and Friday as Latin America’s new issue pipeline, deserted for so much of this year, continues to grow.

Mexico-headquartered home appliance company Controladora Mabe received a positive outlook from Standard & Poor’s on Friday afternoon, leaving the issuer close to investment-grade status just as it meets bond investors.

The two Fibras — or Mexican Reits (real estate investment trusts) — lining up to issue are perfect candidates for the volatile conditions in the Latin American market, said LatAm bond bankers.

América Móvil on Thursday issued its second exchangeable bond into stock of Koninklijke KPN in just four months, raising €750m after a €3bn issue in May. But this deal, unlike the earlier, was a mandatorily exchangeable structure.

Two Fibras — the Mexican version of the US real estate investment trusts (Reits) — are considering issuing dollar bonds in September, said bankers, finally providing some visible potential supply to LatAm’s bare pipeline.

Mexican real estate investment trust — or REIT — Fibra Terrafina could become the first borrower from Latin America to bring much-needed bond supply in September as it turns to international markets for the first time.

After “particularly ugly” second quarter results, according to one bank’s credit analyst, Moody’s confirmed on Monday that Mexican construction group Empresas ICA’s turnaround was short-lived by placing its B2 rating on negative outlook.

Even the strongest companies are not safe. When Mexican state oil company Pemex — alongside the Mexican sovereign — was awarded an A3 rating in 2014 the talk in the market was of the country’s energy reform helping it to bridge the gap between emerging and developed markets.

Mexican building materials company Cemex, has signed $3.79bn of loans including a €620m tranche after an upgrade to BB- from Fitch.

With emerging market currencies taking a battering across the globe, local currency bond issues continue to be a tough ask. However, innovations in the Mexican market are providing an encouraging grounding for future deals.

Opsimex, the telecoms tower spin-off of Mexican giant América Móvil, could issue in dollars as soon as Thursday if market conditions are good enough after completing a Ps15bn ($920m) local market bond sale on Wednesday.