LatAm Bonds

Bank of America Merrill Lynch has hired Ricardo Fernandez Rebolledo from Credit Suisse as head of Mexico investment banking.

Syndicate bankers often joke that Brazil issuing is a sign that it’s time to sell Latin American bonds, and a sell-off indeed began this week just as the sovereign was pricing its latest deal. But market jitters should not distract from an improving picture in the country.

The Brazilian sovereign pounced on the best of this week’s issuance conditions but then saw its bonds widen alongside a broader sell-off in markets later in the week — though this did not deter two companies from the country from issuing.

Auto parts supplier Nemak became the third Mexican borrower to issue in euros in 2017, tightening pricing three times on the way to a €500m seven year non-call three bond.

South American development bank CAF sold its largest ever bond in Australian dollars on Tuesday, pricing a new 10.5 year deal through its existing curve thanks in part to strong demand from Japanese investors.

Bondholders of Belize’s struggling superbond have backed the government’s amendments to a restructuring proposal after the borrower finally ceded ground during negotiations.

Meatpacker Marfrig sold $750m of seven year non-call three bonds on Wednesday as Brazilian issuers take centre stage in Latin American primary markets after a great run in secondary.

Latin America’s largest sovereign Brazil raised $1bn in international bond markets on Tuesday, earning praise for its timing despite taking the unusual path of pricing at the wide end of guidance.

It has been all about sub debt in CEEMEA this week, as a trio of borrowers took advantage of investor appetite for yield to boost their capital bases.

The government of Belize appears to have finally come to an agreement with bondholders after promising to ensure more prudent financial management as part of a debt restructuring.

Argentina has earned its first positive rating action since the triple upgrade that followed its emergence from default last year, as Moody’s placed the sovereign’s B3 rating on positive outlook on Monday evening.

Argentine real estate company Raghsa is meeting international investors ahead of a planned $150m issue of senior unsecured notes due 2024.