LatAm Bonds

A sharp drop in fixed income trading revenues stifled Citi’s pre-tax profits in the third quarter of 2013, although the group was able to post a slight year-on-year increase.

A $100m tier two deal from Bank St Petersburg got CEEMEA supply moving this week and Gazprom is aiming to follow with a Sfr500m deal on Wednesday. Meanwhile, a string of other issuers are poised to move if risk appetite is restored following an end to the US debt ceiling debacle.

Sovereign, supranational and agency bond markets started the week strongly, with oversubscribed and tightly priced deals in euros. However, with no resolution yet in sight to the US debt ceiling negotiations, issuers with benchmarks to get away are holding off until next week when they hope there will be less uncertainty.

A former head of Mexican debt capital markets at BBVA has set up a Miami-based boutique to advise companies in Latin America on their capital structure, preparations to access capital markets and expansion plans.

Mexican telco Maxcom emerged from bankruptcy on Friday with a cheaper debt burden and greater equity capital, leaving some bondholders bullish over the company’s recovery prospects.

Successful issues from Codelco and Millicom showed that bankers had been correct to assert that LatAm bond markets were always open, even as Brazil’s Biosev had become the third borrower in a week from the region to cancel deal plans on Wednesday.

Brazilian sugar and ethanol group, Biosev became the latest Latin credit to cancel a bond on Wednesday, postponing a $300m seven year non call four B1/BB- deal as it failed to attract enough demand even at price talk of an 11%-12% yield.

Dealogic league tables of total revenue transactions, October 10, 2013. Including Investment Banking, Debt Capital Markets, Equity Capital Markets, Mergers & Acquisitions and Syndicated Loan revenues.

Dealogic league tables of bond transactions, October 9, 2013. Includes SSAs, FIG, investment grade and high-yield corporates, emerging markets and ABS.

Dealogic league tables of loans transactions, October 10, 2013.

Year to Date Latin America DCM Bookrunner Ranking

LatAm bond bankers insisted their market was open for business despite Brazilian sugar and ethanol company Biosev becoming the third consecutive Latin American credit to postpone a bond deal on Wednesday.