LatAm Bonds

International bond markets are at odds with local financial and economic commentary on Venezuela, which remains pessimistic. Investors are happily making a quick buck, but last week’s Petroleos de Venezuela SA bond shows just how far the country is from real economic pragmatism.

Banca Inbursa, the Mexican commercial bank owned by Carlos Slim’s family, will begin a roadshow on Friday ahead of a planned 144A/Reg S bond.

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.

Construction company Empresas ICA made the most of high demand for Mexican high yield paper to print a rare 10 non-call five trade from a LatAm single-B issuer, increasing the size of the deal in the process.

Latin American development bank Corporación Andina de Fomento (CAF) started execution on a seven year euro transaction on Wednesday, and had well over €2.3bn in orders by midday for its first public deal in the currency since 2011.

Banco General became the first Panamanian issuer to tap the Swiss franc market on Wednesday morning, selling a four year deal. Bankers away from the deal said that an investment grade credit rating and an attractive spread over swaps made the deal interesting for Swiss investors.

Mexican construction company Empresas ICA announced initial price thoughts of mid-9% for a new 10 year non-call five dollar benchmark to be used to fund a tender offer.

Colombian state oil company Ecopetrol pounced on a rally in its bonds to price a $2bn deal due 2045 flat to or through its existing curve, timing its new deal much better than its previous issue in September 2013.

International bond markets are at odds with local financial and economic commentary on Venezuela, which remains pessimistic. Investors are happily making a quick buck, but last week’s PDVSA bond shows just how far Venezuela is from real economic pragmatism.

Latin American development bank Corporación Andina de Fomento (CAF) has picked banks for what would be its first public euro transaction in over three years.

Financiera Independencia, a Mexican microfinance company, is looking to raise $200m of new five year bonds to buy back existing bonds as investors complain about the lack of supply in the Mexican high yield sector.

LatAm bond markets finally began to show signs of softening in the second part of the week but food conglomerate BRF Brasil Foods showed there is still strong appetite for well thought out deals on Thursday.