LatAm Bonds

It was hardly back with a bang, but Latin American corporate issuance is on the agenda again after Fibra Terrafina sold $425m of seven year notes on Tuesday — some two months after its roadshow.

Latin American development bank Corporación Andina de Fomento’s (CAF) chief financial officer appeared relaxed at the prospect of rising interest rates in the US after the multilateral clinched a record low coupon and spread on its latest euro transaction.

Latin America bankers say that a Mexican corporate is likely to announce a roadshow on Thursday after Fibra Terrafina’s debut deal traded well in secondary despite only a modest oversubscription.

Latin American development Corporación Andina de Fomento (CAF) clinched its tightest ever spread and coupon in the euro market on Tuesday with a five year deal that was larger than the borrower had initially intended.

Peru took some stick from bankers for its return to the European bond markets last week, but the deal is a pleasing sign that Latin American issuers are finally looking at the long term.

Moody’s removed the negative outlook on Argentina’s Caa1 rating as analysts said the political climate is looking more positive for holders of the sovereign’s debt.

Latin American development bank CAF (Corporación Andina del Fomento) released initial price thoughts on Monday for a benchmark sized five year euro-denominated bond expected to be priced on Tuesday.

The Petrobras corruption scandal continues to trouble the firm's business partners as Odebrecht Offshore Drilling Finance received another downgrade on Friday following the September cancellation of the ODN Tay IV contract.

Mexican government-owned development lender Nafin (Nacional Financiera) became the first Latin American financial institution to sell a green bond on Thursday in what one banker said was a landmark deal for the product in the region.

Several Latin American companies are trying their utmost to reduce dollar exposure amid FX weakness in the region, with many extending the early bird deadlines of tender offers to entice bondholders to sell back bonds.

Peru on Tuesday became the latest Latin American sovereign to issue in euros and more could be on the way as the region’s borrowers look to make their mark in Europe in case dollar markets become more expensive.

The executive president of Andean development bank CAF tells GlobalCapital that the bank is anticipating greater demand for its loans as the region’s economic slowdown hits, and looks at how Latin America can generate much needed growth.