LatAm Bonds
-
Santander Chile’s decision to head into volatile markets and print a $250m floating rate note on Friday May 31 (see box) did not inspire any other Latin American credits into the international bond market this week, as market participants said they expected borrowers would have to get used to a new era of higher spreads.
-
Banco Santander Chile is expecting to issue the first ever covered bond from the Andean country in July, aiming to create a liquid market that can support one of the most developed mortgage markets — estimated at around $45bn — in emerging economies.
-
A Santander Chile funding official agreed with many market participants that the best conditions for LatAm borrowers were over, as the bank opted to head straight into the volatility to sell a $250m five year floating rate note on May 31.
-
Food conglomerate BRF Brasil Foods has extended the early bird deadline for bondholders to tender their notes as it looks to incentivise more investors to participate.
-
LatAm bankers expect new bond issuance will continue to be steady this summer, after US Treasury volatility triggered a quiet couple of weeks in the market and after Santander Chile opted for a safe trade on Friday
-
The primary market is expected to pick up again next week for sovereign, supranational and agency borrowers after disappointments this week. They left investors more focused on turbulence in the US Treasury market and falling stock markets worldwide than on supporting new bond deals in a week that was peppered with holidays in the US, UK and parts of Europe.
-
Brazilian conglomerate Odebrecht is looking to take advantage of the desire of the Brazilian government and Petrobras to develop the local oil and gas industry by issuing up to $1.88bn of senior secured 144A/Reg S bonds backed by flows from ultra deep water drilling contracts.
-
Bahamas-headquartered industrial shipping company Ultrapetrol sold $200m of first preferred ship mortgage notes due 2021 on Thursday afternoon, improving its debt maturity profile to such an extent that it may receive a ratings upgrade.
-
New issue activity in Latin America remained thin this week as US Treasury volatility continued to make conditions difficult for issuers.
-