LatAm Bonds

Recent volatility in US and European bond markets has damaged capital flows into emerging markets. Although some analysts are expecting things to improve, the Institute of International Finance (IIF) expects capital flows into EM to hit their lowest level since the 2008 this year.

Latin America’s new issue pipeline is filling up heading into June, with four companies evaluating new bonds.

Aircraft manufacturer Embraer this week became the fifth Brazilian borrower to mandate banks for an international bond issue in the month since Petrobras filed its delayed audited financials, provoking a rally in the country’s credit markets.

Aircraft manufacturer Embraer has mandated Citi and Morgan Stanley to run fixed income investor meetings as Brazilian companies relish renewed appetite for the country since Petrobras filed its full year results in April.

Latin America’s largest airline group is planning to return to the bond markets for the second time this year looking to refinance debt issued by its Brazilian arm Tam while it was still an independent airline.

Mexican power company Comisión Federal de Electricidad (CFE) will begin meetings with bond investors on Wednesday as investors grow used to the organisation’s changing role.

Praise for Itaú’s blow-out three year senior deal proved to be well-placed as JBS USA made a triumphant return to bond markets five months after having to cancel a liability management exercise.

Brazilian food producer BR Foods (BRF) is planning what would be the second ever and largest green bond from Latin America and will meet investors in Europe next week.

Euro denominated bonds still provide an attractive diversification option for Latin American borrowers, said DCM bankers covering the region this week, even if conditions are softer than a few weeks ago and it is hard to beat dollar pricing.

Brazilian meatpacker JBS sold $900m of new 10 year notes on Wednesday, sending a clear signal to other issuers from the country that issuance conditions have improved sharply.

Brazilian food producer BRF Foods has mandated six banks to manage a roadshow ahead of a potential euro denominated green bond, on the same day that it announced a tender offer via a different set of banks.

The head of investor relations at Mexican state-owned oil giant Pemex is leaving the company after nearly four years in the position.