LatAm Bonds

Bankers expect Brazilian ammunition manufacturer CBC Ammo and Guatemalan sugar producer and exporter Ingenio Magdalena (Imsa) to sell their first international bonds as soon as Friday as Latin American issuers continue to make the most of low US Treasury rates.

Banco de Chile sold its fourth Swiss franc bond of the year on Wednesday, with the borrower’s combination of high credit quality and an attractive yield helping to secure strong demand for the trade.

Empresa Nacional del Petróleo (ENAP), the Chilean state-owned oil company, sold its inaugural Swiss franc bond on Wednesday afternoon — becoming the first Chilean corporate to tap the market. The issuer overcame concerns over a low credit rating and recent losses to issue a deal with a healthy oversubscription.

Dealogic league tables of total revenue transactions, November 7, 2013. Including Investment Banking, Debt Capital Markets, Equity Capital Markets, Mergers & Acquisitions and Syndicated Loan revenues.

Dealogic league tables of bond transactions, November 6, 2013. Includes SSAs, FIG, investment grade and high-yield corporates, emerging markets and ABS.

Dealogic league tables of loans transactions, November 7, 2013.

Dealogic league tables of bond transactions, November 6, 2013. Includes SSAs, FIG, investment grade and high-yield corporates, emerging markets and ABS.

Empresa Nacional del Petróleo (ENAP), the Chilean state owned oil company, sold its inaugural Swiss franc bond on Wednesday afternoon — becoming the first Chilean corporate to tap that market. The issuer overcame concerns over a low credit rating and historically weak financials to sell a deal with a healthy oversubscription.

Banco de Chile sold its fourth Swiss franc bond of the year on Wednesday, with the borrower’s combination of high credit quality and an attractive yield helping to secure strong demand for the trade.

BTG Pactual, the Brazilian bank, reported a slight year-on-year decrease in pre-tax profits in the third quarter as global markets, sales and trading, and investment banking revenues fell victim of continued market volatility and lower activity in Latin America.

CEEMEA supply is booming as borrowers embrace a supportive market and a hungry investor base. Established sovereigns and corporates, along with first time financials, are launching or readying deals, in a final surge before the year end. Improving US economic data, suggesting a reduction in quantitative easing and a subsequent rise in yields, is prompting borrowers to come to market before rates rise.

Latin America’s only new bond issue so far this week traded up on Tuesday despite a general market sell-off, offering encouragement about the state of the market to the three high yield issuers from the region out with price thoughts for debut international bonds.