LatAm Bonds

Votorantim Cimentos on Thursday morning opened books on the first international Brazilian deal since a Petrobras corruption scandal in November. But the euro denominated reopener struggled in a rotten primary market and was unable to move pricing.

There may have been no tequila at the roadshow but investors piled into Jose Cuervo’s inaugural international bond issue on Wednesday as Mexican companies continue to enjoy heady conditions in capital markets.

Tequila went to the head of US bond investors in the wake of Tuesday’s Cinco de Mayo celebrations as Jose Cuervo, the largest brand of the headache inducing if rather delicious drink, reaffirmed Mexico’s status as the leader of the LatAm bond market.

The typical reaction to a borrower in the primary market on a day such as the one the European rates market suffered on Thursday is to question what said issuer had been drinking.

Brazilian cement company Votorantim Cimentos has pencilled in the pricing of a seven year euro benchmark bond for Thursday, the day after it finishes a European roadshow.

The owner of Jose Cuervo tequila has announced initial price thoughts of 200bp over US Treasuries for a 10 year debut 144A/Reg S deal of $500m, according to a banker working on the deal.

Bondholders who showed faith in Colombia’s largest private oil company Pacific Rubiales could be spectacularly rewarded after reports emerged that minority shareholder Grupo Alfa had bid to acquire the firm.

Two Latin American countries at opposite ends of the rating spectrum could lift sovereign bond issuance volumes shortly. Chile and Honduras are understood to be monitoring markets.

The Dominican Republic returned to bond markets on Thursday with an intraday tap of its 10 and 30 year notes.

The holding company of Montevideo’s main airport gave bond investors the rare chance to buy Uruguayan corporate paper with the sale of a $200m senior secured bond on Tuesday.

Brazil’s Treasury will have to hurry if predictions from DCM bankers that the sovereign will reopen the Brazilian cross-border bond market are to be proven right.

Guatemalan lender Banco de los Trabajadores (Bantrab) did not price its subordinated pass-through note on Wednesday as scheduled, but the deal has not been cancelled.