LatAm Bonds

Year to Date Latin America DCM Bookrunner Ranking

Mexican cement company Cemex became the third Latin American issuer in as many days to sell new bonds as part of a liability management exercise, printing $1.4bn of fixed and floating rate notes on Wednesday.

Latin American McDonald's franchisee Arcos Dorados Holdings sold $375m of bonds due 2023 on Tuesday as part of a liability management exercise, but opted not to tighten pricing despite receiving $1.2bn in demand.

Mexico used a liability management transaction to ensure the country's smooth return to the dollar markets on Monday, the country’s public credit head has told EuroWeek.

The covered bond market has exploded this week, with four euro deals launched on Wednesday, following one in US dollars on Tuesday. Bank issuance overall is back with a bang, after Fed tapering uncertainty was pushed aside, for the time being at least, and investors got the German election outcome they wanted. There has been strong supply in bank capital and senior unsecured, while UK issuers have returned to ABS after a long absence.

Mexico was able to tighten substantially a new 10 year bond of $3.9bn that priced late on Monday as part of a liability management exercise.

Mexican telecoms giant América Móvil will tap its 2022 Mexican peso bonds before this quarter is up, and may sell a new shorter maturity peso deal too, CFO Carlos García Moreno has told EuroWeek.

The Republic of Colombia completed its 2013 funding with $1.6bn of 4% 2024s printed at the second lowest yield it has ever achieved in international bond markets. But the bond’s poor secondary market performance has led investors to warn that the buyside should be careful about offering borrowers such tight new issue premiums in this market.

Latin American debt markets proved that they were on the path to recovery even before the surprise lift provided by the US Federal Open Market Committee on Wednesday. Four sub-investment grade names from the region sold a total of $2.85bn of bonds on Friday September 13, completing the biggest week in LatAm high yield since February 2011.

The momentum in EM debt markets on Thursday morning was enough to allow the Colombian sovereign and, in particular, Brazilian development bank BNDES to enjoy hefty tightening as they re-opened the Latin American bond markets after Tuesday and Wednesday’s US Federal Open Market Committee (FOMC) meetings.

Dealogic league tables of bond transactions, September 18, 2013. Includes SSAs, FIG, investment grade and high-yield corporates, emerging markets and ABS.

Dealogic league tables of bond transactions, September 18, 2013. Includes SSAs, FIG, investment grade and high-yield corporates, emerging markets and ABS.