LatAm Bonds

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

Year to Date Emerging Markets DCM Bookrunner Ranking

From the sovereign to high yield names: Not only can Brazilian issuers access the market, but they can do so in style. So concluded some LatAm DCM bankers after the Brazilian government and meatpacker JBS attracted huge demand in printing benchmark deals at tight levels on Wednesday.

Brazilian consumer credit company Omni SA Credito, Financiamento e Investimento has 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 telecoms company Empresa Nacional de Telecomunicaciones (Entel) released initial price thoughts of 262.5bp-275bp over US Treasuries for a new amortizing senior unsecured bond with a final maturity of 2024.

Bankers are optimistic about high yield supply from LatAm as JBS released initial price thoughts for a bond and San Miguel Industrias announced a roadshow.

A full government guarantee may be a sledgehammer, but the £10bn of debt needed to build the UK’s first new nuclear power station since the 1980s is a very big nut.

EM bonds are back, with investors being offered a wide choice of credits and currencies to pick from. CEEMEA borrowers have answered investors' increasing risk appetite with deals in euros, dollars and Swiss francs this week. Banks, corporates and sovereigns have all launched bonds and debt bankers expect more to follow before Friday's close.

Guatemalan cement company Cementos Progreso will meet fixed income investors with Deutsche Bank this week ahead of a potential debut 144A/Reg S bond issue.

Brazilian iron ore pellet supplier Samarco Mineração’s jumbo order book on Monday was reminiscent of the heady days of early 2013 as the company attracted $5.5bn of demand for a $700m 10 year bond. After CFE’s blow out last week, Samarco provided further evidence of the high demand for high quality credits from Latin American borrowers.

Fitch gave a potential lift to Ecuador’s plans to attempt to tap international capital markets in 2014 by upgrading the South American sovereign by one notch on Friday.