LatAm Bonds

Borrowers from Latin America are flocking to meet bond investors despite market conditions softening over the past week.

Emerging market bond investors were as quick to highlight medium-term challenges in Brazil as they were to express relief at the outcome of the first round of Sunday’s presidential election, though DCM bankers highlighted improved prospects for primary markets.

Peru wrapped up an investor roadshow on Wednesday just as the Dow Jones suffered its worst day since February to leave investors and bankers examining conditions as the sovereign weighs up a dual-tranche dollar and Nuevo sol deal.

Turkey is braced for one of the most important political events of what has been a turbulent year; the hearing of US pastor Andrew Brunson. The consequences could shape Turkey’s recovery from its recession. Elsewhere, a Russian mining company's loan showed the country is not quite closed for business, and after weeks of quiet, Latin American markets have bounced into life.

Pan-emerging markets cable and mobile group Millicom International Cellular could return to bond markets this week as it looks to pre-fund the acquisition of a Panamanian company.

The Central American renewable energy subsidiary of multinational conglomerate Corporación Multi Inversiones (CMI) will begin investor meetings on Friday as it seeks to become the first debut issuer from Latin America since May.

Mexican home appliances company Controladora Mabe will look to raise up to $370m of senior notes as three companies from Latin America look to international bond investors despite a soft market tone.

Bond market analysts and investors warned that post-election market euphoria in Brazil could fade quickly even if right-wing populist Jair Bolsonaro, who has outlined a market-friendly economic plan, wins in the second round as seems likely.

Mexican home appliances company Controladora Mabe is looking to buy back bonds due next year as Latin American companies continue to focus on liability management.

The spread on Colombia’s $2bn new issue hung in close to reoffer levels on Thursday as the speed of the US Treasury sell-off spooked some EM investors, just as it seemed the asset class was returning to form.

Coca Cola’s Chile-based bottling business Embotelladora Andina (Andina) is planning to replace international debt with domestic bonds, after wrapping up a tender offer for its old 2023s.

Telecoms company Cable & Wireless sold $500m of eight year paper at the tight end of guidance to become the first high yield name from Latin America or the Caribbean to issue in dollars since July 12.