LatAm Bonds

A decision not to take a rating from Moody’s proved wise for Braskem as the Brazilian company attracted significant interest from investment grade buyers on its way to a $1.75bn dual tranche deal on Wednesday.

Extraordinarily strong appetite for EM corporate paper helped power company Colbún become the latest Latin American borrower to issue through its existing curve on Wednesday.

Brazil followed Mexico’s example in making the most of idyllic issuance conditions on Tuesday, though some investors argued that Brazil’s $3bn deal demonstrated that the market retained some sense of discipline.

Latin America DCM bankers saw Mexico’s latest bond issue priced with a negative new issue premium on Monday, though at one stage it looked like the deal could have come even further inside fair value as the $1.88bn sale was launched at the middle of the guidance range.

Brazil’s Braskem could become the third Latin America chemicals company in two weeks to issue internationally as it meets fixed income investors on Monday and Tuesday.

Mexican chemicals company Cydsa brought back memories to many market participants with a 10 year bond issue last week, but had to up its offer to investors to haul the $330m deal over the line.

Latin America is one of the most promising fields, both for green economic investment, and for green financing. Powerful players in the region’s capital markets, such as national development banks, are supportive, and the range of issuers is spreading, from renewable energy into sectors such as paper, airports and banks. As Oliver West reports, there is good demand from international investors, but what could help even more is to build up the local market.

Mexican chemicals company Mexichem earned praise from bankers for its bond execution and then showed that it is possible to price tightly and trade up.

One rare and one debut issuer from Latin America are meeting bond investors as bankers say that a quieter couple of weeks of activity is no indication of a slow end to the year.

Petrobras’s latest new issues gradually recovered ground in secondary markets this week as the overhang effect from a huge exchange offer began to wear off.

Chilean credit union Cooperativa del Personal de la Universidad de Chile (Coopeuch) joins the ranks of Chilean borrowers welcomed into the Swiss franc bond market. Thursday’s outing further illustrates that the love affair of the Chilean borrower and Swiss buyer not only endures but burns brightly.

EM bond investors showed no supply fatigue in Latin America on Wednesday as Mexican chemicals company Mexichem attracted a huge book on the way to its first bond issue since 2014, and paid little or no new issue premium for the privilege.