LatAm Bonds

Asset liability management is all the rage in the CEEMEA market, with Gabon, Gazprombank and Uranium One conducting tenders, exchanges and amendments. Meanwhile, a barrage of new bonds has hit the primary market, as sovereign benchmarks, financial subs and traditional senior debt deals all clamour for investors’ attention.

Mexican petrochemicals company Grupo Idesa is beginning investor meetings on Wednesday ahead of a potential debut bond with a target size of $300m and an expected maturity of 2023.

Chilean financial Banco de Crédito e Inversiones is set to sell its second Swiss franc bond on Tuesday afternoon, a short dated note that secured the borrower a healthy arbitrage compared to its funding costs in dollars.

Venezuelan government-backed debt maturing in less than 12 months is available at a yield of more than 17% as investors continue to flee bonds in the country in fear of the economic turmoil and political unpredictability there.

The Commonwealth of the Bahamas is planning a return to the bond markets and has mandated JP Morgan and RBC Capital Markets to arrange a roadshow ahead of a potential 144A/Reg S deal.

Colombia’s largest private oil and gas company Pacific Rubiales pounced on reverse demand for its 2021s to reopen the bonds for a further $300m on Monday November 25.

Argentine borrowers are poised for a notable return to international debt markets next year after a strong recent rally and this week’s important compensation deal with Spain’s Repsol. While the sovereign remains locked out due to its creditor dispute, bankers expect sub-sovereign and corporate credits to seek foreign funding in size in the wake of September’s ground-breaking deal from YPF.

Peruvian gold and silver miner Hochschild began a roadshow on Thursday ahead of a potential $350m bond expected to have either a seven or 10 year maturity.

Banco do Brasil priced its inaugural Swiss franc deal on Tuesday, selling the largest ever Latin American FIG deal in the currency. A strong bid for emerging market paper coupled with the lack of other Brazilian credits in the currency helped the deal to grow beyond its target size.

Standard & Poor’s will not downgrade any European companies as a result of the wide-ranging changes to its corporate rating criteria, which it has been preparing since June. However, it has placed eight Asia Pacific companies and 15 in the Americas on CreditWatch negative.

Peruvian gold and silver miner Hochschild will begin a roadshow on Thursday ahead of a potential $350m bond expected to have either a seven or 10 year maturity.

Banco do Brasil priced its inaugural Swiss franc deal on Tuesday, selling the largest ever Latin American FIG deal in the currency. A strong bid for emerging market paper coupled with the lack of other Brazilian credits in the currency helped the deal to grow beyond its target size.