LatAm Bonds

Brazilian development bank Caixa Econômica Federal is set to return to the bond market with Basel III compliant subordinated tier two trade after mandating banks for a roadshow set to start on Wednesday.

Investors in Chile expect power transmission company Transelec to price a new 10 year bond on Wednesday, predicting a spread well inside that achieved by fellow Chilean Colbún, the power generator that issued last week.

Bankers hailed the timing of Peruvian development bank Corporación Financiera de Desarrollo (Cofide) after the government owned lender snatched at the chance to print blowout five year senior and 15 year Tier two subordinated bonds on Tuesday afternoon.

Investors expect Peru’s government owned development bank Corporación Financiera de Desarrolly (Cofide) to attract heavy demand for a dual-tranche bond issue expected to be priced on Tuesday. Moody’s two notch upgrade of the Peruvian sovereign will only help drive interest, added market participants.

Moody’s surprised bankers and investors covering Peru last week by upgrading the country’s sovereign debt rating by two notches to A3, putting the Andean nation alongside Mexico, which made the A-grade in February.

Issuers from Brazil dominate a hefty pipeline of Latin American issuers likely to sell bonds next week as region’s largest economy claws back new issue market share from Mexico.

Jamaica made a triumphant return to bond markets on Tuesday just a year after its last debt restructuring, showing of the strength of the high yield market by clinching its lowest ever coupon in international markets.

Colbún, Chile's second largest power company, demonstrated the pricing pull that the country's corporates have in bond markets this week, repricing its curve with a negative new issue premium as large as 10bp, according to bankers on and away from the deal.

Chile’s second largest power generation company Colbún proved it was right to postpone bond plans in August 2013 as it clinched a well oversubscribed deal at a negative new issue premium on its first bond market outing since 2010.

Chilean state copper company Codelco priced its debut euro-denominated bond issue inside where it could have priced a dollar deal on Wednesday, according to a banker on the deal, as European corporate buyers jumped at the chance for some EM-flavoured yield.

Electricity transmission company Transelec is set to continue the revival in cross-border issuance from Chile after mandating banks for a new 144A/Reg S deal.

Chilean state copper company Codelco became the latest in a run of EM issuers to debut in euros on Wednesday, taking advantage of strong demand for yield and a beneficial basis swap to price inside where it could have priced a dollar bond, according to a banker on the deal.