LatAm Bonds

When market participants can’t see a possible end to a bond rally, the ending is likely to be brutal.

The Republic of Ecuador raised $2.5bn of 10 year notes on Wednesday to take its total borrowing for the year to $5.5bn as — for the first time in seven deals — the sovereign mandated an institution beyond Citi to manage the issuance.

Colombian lender Banco Davivienda sold $500m-equivalent of peso-denominated bonds in global markets on Thursday to kick off an expected flurry of global local currency deals from Latin American issuers.

Two Brazilian bond deals this week underlined the improved sentiment towards Latin America’s largest economy as Banco do Brasil’s first bond in three years traded a point up the day after pricing despite coming flat to fair value.

Uruguay is in advanced discussions with clearing houses to make it easier for international investors to participate in its local curve, as the sovereign looks to integrate its domestically issued notes with the nominal global peso curve established this year.

Sir Richard Branson spoke with GlobalCapital’s Lucien Chauvin on Wednesday, after meeting Caribbean heads of government and leaders of the World Bank and International Monetary Fund in Washington. Branson is pushing for a Marshall Plan to help the Caribbean cope with the relentless onslaught of hurricanes, exacerbated by climate change.

A potential Costa Rican colón bond issue is arguably the most eye-catching of a flurry of global local currency transactions planned by Latin American borrowers as bankers say the bull market could hit new heights.

The Republic of Ecuador raised $2.5bn of 10 year notes on Wednesday to take its total borrowing for the year to $5.5bn as — for the first time in seven deals — the sovereign mandated an institution beyond Citi to manage the issuance.

Government-owned Banco do Brasil attracted more than $6bn of orders for a $1bn trade on Wednesday as bankers said there was a strong pent-up bid from Brazilian debt.

Emerging market bond investors have returned from the International Monetary Fund/World Bank Annual Meetings in Washington DC, held last week, with little more than jetlag and a feeling that they learned little that was new.

Chile-headquartered Falabella will begin investor meetings on Wednesday as it plots its first international bond issuance in three years.

Brazil’s third largest airline could sell international bonds as soon as this week after mandating for a fixed-income investor roadshow.