LatAm Bonds

Petrobras’ $11bn deal this week smashed the record for the largest emerging market bond by $2.8bn. That was impressive enough, but the book of $43bn left bankers certain it could have pushed the boundaries even further, writes Olly West.

Bankers say Petrobras’s record-breaking outing in the bond markets this week leaves the path clear for large issuers as they no longer have to worry about the possibility of competing with the Brazilian oil giant.

The results of EuroWeek's Bond Awards 2013 were announced at our annual Bond Dinner on May 15 at the Guildhall in London. Read the full list of winners and runners-up - all decided in a poll of market participants - here.

Reverse demand from investors encouraged food conglomerate BRF Brasil Foods to become the latest Latin American company to add a local currency tranche to an international issue as it printed nearly $750m-equivalent of bonds on Wednesday.

EuroWeek held its sixth annual Bond Dinner on Wednesday night at the Guildhall in the City of London. Over 380 market professionals attended the event, at which EuroWeek presented its 2013 Bond Awards to the most impressive individuals and market teams on both the borrowing and investment banking sides of the market. Like all EuroWeek Awards, these were decided not by EuroWeek staff, but by a poll of market participants.

América Móvil tapped five year Swiss franc debt on Tuesday, capitalising on Swiss investors’ strong interest in Latin American credits. While not a frequent issuer in the currency, the company has three bonds outstanding, leaving Swiss investors comfortable with the name.

All six tranches of Petrobras’s record-breaking $11bn bond were seen trading up at least 10bp on a yield basis, said LatAm bankers on Tuesday.

Brazilian oil giant Petrobras returned to the debt capital markets for the first time in 2013 in emphatic fashion, completing the largest ever bond from an emerging market borrower.

The Federative Republic of Brazil tapped Asian investors to add a further $50m to its 2023 notes on Friday, taking the size of last week’s reopening to $800m. Brazil had been keen to deepen liquidity in its 2023s, which now total $2.15bn.

Food conglomerate BRF Brasil Foods is looking to approach the international bond markets for the third time in two years as it recovers from a depressed financial performance in 2012 that has left the company with leverage well above its target, according to rating agencies.