LatAm Bonds

Despite volatile market conditions, which usually make local currency issuance a tough sell, some bond investors say they have their eyes peeled for a Peruvian government nuevo sol trade after the sovereign completed a buy-back of dollar debt on Tuesday.

Pulp and paper producer Suzano Papel e Celulose raised $500m of 30 year debt on Tuesday, two months after first mooting the idea, putting it closer to completing the financing of its takeover of fellow Brazilian company Fibria.

Lat Am bond bankers did not seem overly worried about their Mexican deal pipeline despite bond markets being shocked by the cancellation of Mexico City’s new airport last week.

A semblance of stability in Latin American bond prices allowed Panama City’s airport, Aeropuerto Internacional de Tocumen, to become the second credit from the region in two days to tap dollar markets.

Bonds issued to build Mexico City’s now cancelled new airport have risen from last week’s lows after as analysts declared the risk of default to be very low after the incoming president met with airport contractors on Monday.

A pair of rare euro bonds from sovereign emerging markets borrowers hit the market this week, much to the approval of investors who said the deals provided “good value”.

Despite volatile market conditions that usually make local currency issuance a tough sell, some bond investors say they have their eyes peeled for a Peruvian nuevo sol trade after the sovereign completed the buy-back of dollar debt on Tuesday.

Pulp and paper producer Suzano Papel e Celulose raised $500m of 30 year debt on Tuesday two months after first mooting the idea, putting it closer to completing the financing of its takeover of fellow Brazilian company Fibria.

The state bank of Chile is bookbuilding a return to the Swiss franc bond market.

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.