LatAm Bonds

Argentine province Córdoba is set to continue the seemingly never ending run of sub-sovereign issuance from Latin America’s third largest economy as it sought seven year money on Wednesday.

The government El Salvador was able to raise $601m of 12 year bonds on Tuesday despite a recent deterioration in credit quality as investors said the sovereign’s yields were offering sufficient reward for the risk.

Argentine credit card company Tarjeta Naranja will look to issue international bonds for the first time after approving a bond sale of up to $300m.

Argentine province La Rioja may have had to settle for a wider yield than some expected on its bond debut on Thursday, but a promising aftermarket performance provided some hope for the shrinking number of provinces yet to issue.

Mexican issuers have earned the confidence of investors through years of astute market relations.

Latin American new issue markets are in for a quiet period, said DCM bankers, though Argentina continues to throw up new borrowers.

The Government of Belize has again extended the deadline for a consent solicitation aimed at easing its debt payment burden, but is yet to improve its offer to bondholders.

Mexican oil giant Pemex and north African sovereign Tunisia both used the euro market for diversification plays this week, though the differing receptions each received highlighted the difficulties faced by EM high yield borrowers using the currency. Olly West and Virginia Furness report.

Central American development bank Cabei re-opened its Australian dollar bonds for a further A$65m ($50m) on Thursday in its second outing in the Kangaroo market.

The Argentine province, La Rioja, was looking strong reception after releasing initial price thoughts of 10% for a planned eight year (6.5 year average life) bond on Tuesday, despite some investors expressing their fatigue at the number of Argentine provincial issuers to have brought deals.

Even heavy indications from US Federal Reserve chair Janet Yellen the central bank will raise interest rates at its next meeting were not enough to derail the strong primary market in emerging market bonds.

European bond investors gave Mexico’s prospects a vote of confidence on Tuesday, placing €17.6bn of orders as state-owned oil giant Pemex raised €4.25bn of debt in the largest ever euro-denominated trade from an emerging markets issuer.