LatAm Bonds

Brazilian government-owned development bank BNDES sold a long-awaited green bond on Tuesday, with a combination of scarcity value and SRI investor support ensuring tight pricing.

A strong market backdrop and bond investors’ continued love affair with Argentina allowed state oil company YPF and private sector lender Banco Macro to sell fixed rate peso-denominated bonds to international buyers — trades that would have been unthinkable just months ago.

The Republic of Panamá is likely to tap its 11 year bonds and set a new long benchmark on Thursday after announcing initial price thoughts first thing Thursday.

The bond market’s love for Argentina reached new heights on Wednesday as Banco Macro became the first issuer to sell fixed rate peso debt in international markets since the country returned from financial market wilderness 13 months ago.

Brazilian government-owned development bank BNDES sold a long-awaited green bond on Tuesday, achieving tight pricing that bankers put down more to a lack of supply from Brazil’s quasi-sovereign issuers than the green aspect of the deal.

Bond investors revelled in the extra eighth of a point in yield they earned on Friday after the threat of a workers’ strike at one of Votorantim Metais’ smelters led the company to delay pricing its debut bond and hike pricing.

Argentine state oil company YPF is set to provide arguably the biggest test yet of investor demand for Argentine peso-denominated paper.

Brazilian development bank BNDES surprised some bond market bankers by opting not to issue its first ever green bond the day after its roadshow ended. But conditions appear ripe for the deal when it does arrive.

Guatemalan electricity distributor Energuate’s heavily oversubscribed debut bond closed two points above reoffer on the day of pricing to cap a hectic week in Latin American new issue markets.

Moody’s downgrade of Trinidad and Tobago this week turned the two island nation into a crossover credit and left the Caribbean with no investment grade sovereigns.

Energy company Orazul Energy Egenor, the Peruvian arm of Orazul Energía, took advantage of a cash-rich Lat Am bond market and scarcity of Peruvian issuance to sell $550m of 10 year bonds on Tuesday.

Chilean transmission company Celeo Redes is planning to issue up to $359.2m of senior secured bonds due in 2047, according to rating agencies, after it mandated a trio of banks to lead the deal.