LatAm Bonds

Leasing company Engenium Capital was holding follow-up calls with investors on Monday as it stays engaged with the market ahead of a proposed dollar debut, but bankers said timing was tricky for any Latin American names — let alone Mexican.

Costa Rica’s bond prices are dropping as international bond investors take a pessimistic stance over the likely outcome of a constitutional court verdict on proposed fiscal reforms.

Mexico this week sent global markets a stark reminder that its politicians were not afraid to follow through on radical policies as the incoming president cancelled the capital city’s new $13bn airport. The move caught fund managers across the world off guard, despite the fact it had been a much-advertised campaign promise, writes Oliver West.

A rally in Brazilian dollar bonds slowed but did not reverse this week after right-wing Jair Bolsonaro eased to victory in last Sunday’s presidential election.

Brazilian meatpacker Minerva will make a second attempt this year to buy back its outstanding perpetual bonds after announcing a tender offer on Thursday.

Chilean state-owned oil company Enap (Empresa Nacional de Petróleo) showed Lat Am credits can still raise bond funding on Tuesday, though its latest deal is unlikely to have borrowers racing to markets.

Fitch took swift action on Wednesday Mexico’s rating after incoming president Andrés Manuel López Obrador (Amlo) cancelled the capital city’s proposed new airport, placing it on negative outlook.

Chilean state-owned oil company Enap (Empresa Nacional de Petróleo) raised $680m of amortising 11 year notes on Tuesday in a drive-by trade that showed Lat Am borrowers are still willing to battle tough conditions to get funding done.

Bondholders in Mexico City’s proposed new airport were left speculating how Andrés Manuel López Obrador (Amlo), the country's president-elect, planned to return their money on Monday after the said he would cancel the project.

Brazilian bonds were only slightly up on Monday morning after right-wing Jair Bolsonaro’s victory in Sunday’s presidential election was deemed to be mostly priced in. And analysts looking beyond the promise of market-friendly policies said that the president-elect’s polarising views could make much-needed fiscal reforms difficult.

GE Capital’s former Mexican equipment finance business, known as Engenium Capital, is set to give Latin American debt markets a new test with a proposed subordinated perpetual bond offering.

The Republic of Peru may not have yet announced the dual-tranche dollar and nuevo sol trade that it is understood to be planning, but the sovereign opted this week to get going with liability management anyway.