LatAm Bonds

If América Móvil can’t, no one can. That is the message from Latin American DCM bankers and bond buyers as the Mexican telco prepares to bring back local currency issuance to the region with the first reopening of its innovative títulos de crédito extranjero programme in more than a year.

Mexican commercial lender Banco Inbursa is likely to price a new 10 year benchmark senior unsecured bond on Thursday after releasing initial price thoughts offering around 25bp pick-up to its larger competitors BBVA Bancomer (A2/A-) and Santander Mexico (A3/BBB+/BBB+).

Mexican microfinance company Financiera Independencia (Findep) cut its borrowing costs with a $200m five year bond to buy back old debt, overcoming the fact that the deal’s small size put off some investors.

América Móvil closed a rare four year euro deal this week, but the low coupon and unusual tenor had little impact on appetite, said bankers on the deal. They priced the notes 3bp-4bp back of fair value and saw them 3bp-4bp tighter in the secondary market on Thursday morning.

Default for the sovereign remains a real possibility, but Argentine bonds are back in fashion among yield hungry investors and the Province of Buenos Aires will try to give the clearest sign yet that borrowers have market access as it prepares a $500m deal.

América Móvil opened books on a four year euro benchmark deal on Wednesday morning, and is set to price the notes with a single digit new issue premium this afternoon.

The Province of Buenos Aires is expected to announce a bond mandate shortly after Moody’s and Standard & Poor’s granted the bond to be Caa2/CCC+ ratings.

América Móvil could bring its long awaited tap of its global local Mexican peso bonds shortly after mandating banks for a roadshow, though the bluechip telecoms company will face some investors unhappy that liquidity in the innovative instrument has not materialised as promised.

Ecopetrol’s corporate finance head expressed delight to GlobalCapital after the oil company timed it right to sell the longest ever bond from a Colombian borrower. Further evidence of the benign conditions for Latin American issuers came with a blow-out for Mexico’s ICA as bankers debated whether the bond market rally is nearing its peak.

Two Mexican financial institutions are meeting the buy-side ahead of the potential dollar issues as the country’s issuers continue to enjoy optimum issuance conditions thanks to strong bond markets and the reform agenda driving popularity with investors.

Latin American development bank Corporación Andina de Fomento increased the size of its first euro benchmark for three years as it gets closer to its aim of being considered an SSA, rather than EM, issuer. It will now try to take this strategy to dollars.

GlobalCapital held its annual Bond Awards Dinner on May 21 at the Guildhall in London. Here are the results of the Awards in full. GlobalCapital would like to extend its congratulations to all the winners and nominees, and its thanks to everyone who voted in the polls to determine the winners.