LatAm Bonds

Citi took the top spot in LatAm DCM in the first half of the year thanks to a strong performance in the region’s second-largest economy, Mexico, and its dominance in the non-investment grade sector.The US house maintained its leading position in Dealogic’s regional league table despite ranking only seventh in Brazil, LatAm’s largest market.

Latin America could underperform other developing regions in terms of its markets and economics for as much as two years, according to analysts.

How many times have you been told it was inevitable that Europe’s corporate finance market will become like the US, with a small oligopoly of banks doing the vast majority of business — and fatter fees? If you heard that any time in the past 20 years, the prediction has turned out false. Could 2013 be the year when the big hitters’ prayers are answered? Jon Hay reports.

A return of dollar issuance from Latin America remained a remote prospect this week as bankers ruled out activity ahead of Thursday’s US holiday and Friday’s payrolls number.

Brazil’s Itau BBA has closed the largest loan ever made to a Latin American bank. The $1.5bn deal shows the extent of global liquidity available to LatAm financial institutions, which offers an attractive alternative to a volatile bond market, said loans bankers.

Struggling Mexican homebuilder Urbi is preparing to present lenders with a debt restructuring plan after entering into a 45 day standstill agreement with its main bank creditors.

Rating: Aa3/A-/- Amount: Sfr125m Maturity: 25 July 2017 Issue price: 100.277 Coupon: 1.125% Spread at re-offer: 60bp over mid-swaps Launched: Thursday 27 June Payment date: 25 July Joint books: BNP Paribas, Deutsche Bank

DCM bankers covering Latin America believe the worst is over as they say goodbye to a month that saw zero dollar issuance, with most feeling confident that some new issue activity will return in July.

The sell-off in emerging market debt that has impeded dollar bond issuance from Latin America throughout June could not prevent the region recording its best start to a year in cross-border issuance volumes.

Dealogic league tables of bond transactions, June 26, 2013. Includes SSAs, FIG, investment grade and high-yield corporates, emerging markets and ABS.

Banco de Chile tapped the Swiss franc market for the second time this month on Thursday afternoon, issuing a four year bond. The issuer returned quickly to Swiss francs in response to reverse enquiries from investors that missed out on the three year floater Banco de Chile sold at the start of June.

Dealogic league tables of bond transactions, June 26, 2013. Includes SSAs, FIG, investment grade and high-yield corporates, emerging markets and ABS.