LatAm Bonds

UK Prime Minister David Cameron will speak at the World Islamic Economic Forum on Tuesday and is expected to unveil plans for a sovereign sukuk debut next year.

Guatemalan debut issuer Cementos Progreso will become the first of several high yield Latin American companies to test whether investors' appetite for LatAm credit will endure further down the credit spectrum and for less familiar borrowers.

Government-owned Banco Nacional de Costa Rica (BNCR) priced five and 10 year bonds on Friday, each of $500m, attracting $2.8bn of orders for its debut international bond.

Brazilian consumer credit company Omni SA Credito, Financiamento e Investimento on Monday raised $30m of senior unsecured Reg-S only notes due April 28 2015. Banco Espirito Santo managed the deal, which was an international debut but could eventually be the first of several from the borrower.

Chilean telco Empresa Nacional de Telecomunicaciones (Entel) became the latest Latin American borrower to clinch another blowout bond deal on Thursday. The Baa1/BBB+ rated company printed an inaugural international bond of $1bn around 30bp tight to where bankers estimated its closest peer Telefónica Chile (BBB+/BBB) would have priced a new deal.

Three blowout deals from three very different borrowers showed that demand from Brazilian credits is ample and diverse this week. But while the successes proved a welcome relief to bankers covering Latin America’s largest market, they warned that the same macroeconomic worries will continue to afflict some of the country’s borrowers.

The International Finance Corporation could be set to blaze a trail for other issuers when its new Banking on Women Bond launches next month, MTN bankers said this week.

Huge book sizes in emerging market bonds this week had some DCM bankers recalling the heady EM bull market days of early 2013. But the massive demand does not mean that the sense of euphoria that ruled until just over six months ago has returned, bankers warned. And it would be a mistake to think the market had returned to pre-tapering talk strength.

Dealogic league tables of bond transactions, October 23, 2013. Includes SSAs, FIG, investment grade and high-yield corporates, emerging markets and ABS.

Dealogic league tables of bond transactions, October 23, 2013. Includes SSAs, FIG, investment grade and high-yield corporates, emerging markets and ABS.

Rival currencies, most notably euros but also Canadian and Australian dollars and sterling, are poised to claim a greater share of the sovereign, supranational and agency market in the wake of the US debt ceiling debacle, SSA bankers said this week. The anticipated shift reflects new concerns over political volatility in Treasury spreads meshing with a long term drive to diversify official reserves, writes Nathan Collins.

Year to Date Latin America DCM Bookrunner Ranking