LatAm Bonds

Senior Latin America DCM officials at some market-leading bookrunners said this week that they feared there would be no more dollar issuance from the region in 2016, although a couple of dissenting voices thought one or two issuers may “panic” and attempt to issue.

Central American development bank Cabei added a 20th currency to its bond issuance portfolio on Thursday with a 10 year debut in Australian dollars as niche currencies dominated the post-US election activity in Latin America.

Creditors of Central American sovereign Belize are understood to have formed a committee to deal with a possible second restructuring of the government’s bonds in four years.

Central American development bank Cabei will look to price its first Australian dollar bond on Thursday after announcing price guidance of 180bp over ASW for a proposed 10 year deal.

After a slight recovery in Latin American credit markets on Wednesday, Latin American bond bankers said the region’s borrowers should be ready and waiting to issue as soon as a window becomes available.

Just one-fifth of Mexican corporate bond issuers are likely to escape unscathed from US president-elect Donald Trump's proposed trade protectionism policies, said Fitch on Monday.

In the space of a week, emerging market debt markets have experienced what psychologists call the seven stages of trauma, after the election of Donald Trump as US president. Markets had priced in an 85%-90% chance of a Hillary Clinton victory.

Banco Santander Chile has responded to a reverse enquiry by printing a Sfr125m ($125m) May 2025 bond. Riding off Chilean reputation in the Swiss market, and a scarcity of LatAm offerings this year, the lead managers kept the tickets tightly priced.

Central American sovereign Belize could be forced into a restructuring or exchange of its so-called “super-bond” due 2038 after it said it was looking to meet bondholders to discuss the country’s “serious economic and financial challenges”.

Donald Trump’s shock victory in the US presidential elections was no obstacle to Santander’s Chilean arm as the bank became the first issuer from the South American country to raise financing in Taiwan’s Formosa market.

Donald Trump’s shock victory in the US presidential elections was no obstacle to Santander’s Chilean arm as the bank became the first issuer from the South American country to raise financing in Taiwan’s Formosa market.

Bankers said that none of the three names in the visible Lat Am pipeline would be likely to issue any time soon as a sell-off in US rates brought sudden volatility to EM bond markets, even in economies not considered affected by a Donald Trump presidency.