LatAm Bonds

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.

Central American development bank Cabei is looking to add at least A$25m to its existing Australian dollar bonds due 2026, and may consider a new five year this week.

Mexico’s state owned oil company Pemex has turned to the euro bond market just two months after becoming the first Latin American borrower to sell a bond at all after the election of Donald Trump as US President.

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.