LatAm Bonds

State-owned Chilean bank Banco del Estado de Chile (Banco Estado) printed ¥24bn ($249m) of five year money on Tuesday, becoming the first borrower from the country to tap Japanese yen.

Odebrecht Drilling became on Thursday the first Latin American issuer to say it had put its borrowing plans on the sidelines until markets achieved stability. After two weeks without any dollar issuance at all from the region, DCM and syndicate bankers covering Latin America will take their lead from the US high grade and high yield markets before daring to reopen the new issue markets, as US Treasury volatility continues to rattle bond markets.

Dealogic league tables of bond transactions, June 12, 2013. Includes SSAs, FIG, investment grade and high-yield corporates, emerging markets and ABS.

Fitch has downgraded Homex from CCC to C as the company became the latest Mexican homebuilder to fail to make a payment on its debt — in this case an interest payment on its 9.5% 2019 bonds. The rating agency believes a distressed debt exchange is “highly likely”.

Year to Date Latin America DCM Bookrunner Ranking

Fitch has downgraded Homex from CCC to C as the company became the latest Mexican homebuilder to fail to make a payment on its debt — in this case an interest payment on its 9.5% 2019 bonds. The rating agency believes a distressed debt exchange is “highly likely”.

Banco de Chile sold its second Swiss franc bond on Tuesday, placing a short dated floater to take advantage of treasury demand.

State-owned Chilean bank Banco del Estado de Chile (Banco Estado) printed ¥24bn ($249m) of five year money on Tuesday, becoming the first borrower from the country to tap Japanese yen.

A volatile day on Tuesday left LatAm DCM bankers resigned to another quiet week, dashing hopes that Monday’s calm could seduce some borrowers to test the market. Markets across the world sold off as investors expressed their disappointment at the Bank of Japan's decision not to implement any new easing policies after a two day meeting.

Japanese investment bank Nomura has hired Arthur Rubin as head of Latin American debt capital markets, in one of six senior appointments made by the firm in the Americas.

DCM bankers are hoping that Brazilian issuers BNDES and Odebrecht could break the lull in bond sales from Latin American borrowers, after both completed roadshows.

Standard & Poor’s warned of a weakening of Brazil’s fiscal performance and a greater government debt burden as it placed the sovereign’s BBB rating on a negative outlook.