LatAm Bonds

Emerging market bond investors say that Argentine lender, Banco Hipotecario could this week price a $250m five year deal in what would be a stern test of market appetite for the country following Mauricio Macri’s election as president.

Banco Nacional de Desenvolvimento Econômico e Social (BNDES) will buy back $640m of senior unsecured notes at a discount, taking advantage of sub par dollar prices and its strong cash position to reduce its debt burden.

Mauricio Macri’s victory in Sunday’s Argentine presidential elections signals a new era for the country and should lead to a further rally in the sovereign’s bonds, at least in the short term, say market analysts.

Mexican broadcaster Grupo Televisa sold $1.2bn of 10 and 30 year bonds on Thursday to reignite a Latin American bond market that some had suggested was heading for early hibernation.

Banco Nacional de Desenvolvimento Econômico e Social (BNDES), the Brazilian government-owned development bank, on Monday became the latest financial institution from the country to look to take advantage of depressed bond prices by repurchasing debt below par.

With the most business-friendly candidate boasting a lead of at least eight points in opinion polls ahead of the second round of Argentina’s presidential elections this Sunday, bankers are hoping Argentina can once again play an important role in Latin American bond markets.

Fitch upgraded Mexican auto parts supplier Tenedora Nemak from BB to BB+ on Wednesday, bringing the issuer up to the highest level of sub-investment grade with all three major rating agencies.

Mexican broadcaster Televisa has filed a registration statement and prospectus with the SEC for a planned $1.2bn dollar-denominated bond issue, but Latin America DCM bankers say there is little to compel issuers into the market before year end.

Goldman Sachs, HSBC and Morgan Stanley will lead Mexican television broadcaster Grupo Televisa’s next international bond, although there is no indication yet of when it will happen.

Brazilian iron ore producer Samarco Mineração’s bonds recovered slightly on Monday despite the issuer’s owners giving mixed signals regarding its attitude to the crisis-ridden company.

Banco Nacional de Desenvolvimento Econômico e Social (BNDES), the Brazilian government-owned development bank, on Monday became the latest financial institution from the country to look to take advantage of depressed bond prices by repurchasing debt below par.

Nomura has hired three managing directors within its emerging markets business — two from Barclays and one from Jefferies.