LatAm Bonds

Two unusual corporate deals from Panamá and Dominican Republic brought variety to the Latin American new issue market on Wednesday as stable conditions extended through the week.

Latin American development bank CAF’s transition from emerging market to SSA issuer is almost complete, said its head of funding, after nearly 40% of demand for its latest dollar deal came from central banks and official institutions.

Latin American development bank Corporación Andina de Fomento (CAF) is expected to rake in a substantial order book for its first dollar benchmark in over a year, according to bankers close to the deal.

Argentine province Neuquén launched an exchange offer for its existing senior secured 2021s on Monday, the same it began a three day roadshow with fixed income investors ahead of a potential new 12 year deal backed by oil and gas royalties.

Colombian lender Banco de Bogotá is looking to issue up to $1bn of tier two 10 year notes, although Moody’s said that the bonds will do little to address the bank’s low capital ratio.

The president of the Asian Infrastructure Investment Bank, Jin Liqun, tells Emerging Markets that he expects strong demand for its debt and reveals that he is looking to invest in emerging economies across the world as well as in Asia.

Investors said the Argentine province of Neuquén would be feeling lucky that it had postponed a bond issue last September after the issuer this week announced a second roadshow in less than a year.

Central American sovereign Guatemala sold its first international bond in three years this week, with market participants saying a strong technical bid from local investors helped it to a relatively tight yield.

Who would question the word of a Latin American DCM banker? Those origination bankers promising that a significant pipeline of borrowers was waiting for Argentina to hit the market before issuing themselves were proved correct this week.

Dominican Republic-based power generator AES Dominicana will begin investor meetings on Friday ahead of a proposed dollar denominated 144A/Reg S as Lat Am corporates revelled in strong market conditions.

Guatemala will undertake a second day of investor calls on Thursday ahead of what is likely to be the its first international bond since February 2013.

Oman will be hoping this week's buoyant support of Middle East credits remains after Abu Dhabi attracted $17bn of orders to its $5bn dual tranche deal on Monday. Abu Dhabi hit big in emerging markets this week drawing $17bn of orders for its $5bn dual tranche bond. It is the largest deal from a Middle Eastern sovereign, an accolade it shares with Qatar which issued the same amount back in 2011.