LatAm Bonds

Mexican conglomerate Fomento Económico Mexicano (Femsa) turned to international bond markets for the third time this year20 on Monday, clinching its tightest dollar funding of the year despite wider spreads.

Bankers said that Uruguay could provide a stern test of risk appetite if it decides to announce a new bond issue in local currency, after the sovereign began investor calls saying it could issue in dollars and/or Uruguayan pesos.

US investment managers GMO and Greylock will again unite to begin negotiations with Belize after the government said on Wednesday it wanted to delay all bond payments until February.

Peru's largest commercial lender Banco de Crédito del Perú (BCP) will begin fixed income investor calls on Monday as it contemplates a tier two capital bond issue, just two weeks after parent company Credicorp issued a debut $500m senior deal.

Central American sovereign Honduras marked a new milestone for EM bond markets in the coronavirus era this week as it became the lowest-rated issuer from Latin America to issue during the crisis. Oliver West reports.

The possibility of Argentina’s debt negotiations ending up in court drew closer on Wednesday night, as the positions of the largest group of bondholders and the government appeared to be irreconcilable.

Nexa Resources, the mining arm of Brazilian conglomerate Votorantim, issued $500m of 10 year bonds on Monday, offering a healthy concession to its existing curve and seeing its new bond catch a broader rally on the break.

Central American sovereign Honduras found strong demand on its return to bond markets as investors and analysts said the issue ticked all the boxes for a yield-hungry investor base.

The government of Belize will launch a consent solicitation in early July asking bondholders to agree to delay all interest payments due before February, it said on Wednesday. With a general election due in November, this would effectively leave the next government to decide whether further debt negotiations are required.

As sovereigns and corporates from all corners of the word suffer rating downgrades at an alarming rate, Brazilian meatpacker JBS bucked the trend on Tuesday as Fitch upgraded the borrower to BB+, just one notch away from investment grade status.

Honduras is planning to price a new 10-year bond on Wednesday after tightening guidance significantly as EM debt caught the US Federal Reserve-driven rally in fixed income markets.

Nexa Resources, the mining arm of Brazilian conglomerate Votorantim, overcame a soft start to the week in international markets to raise $500m on Monday, with investors saying the company had offered a generous pick-up to its existing notes.