LatAm Bonds

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Peruvian corporates Calidda and Milpo are expected to price debut international bonds on Thursday as investors rush to finance companies based in a country they see as LatAm’s biggest success story.

A favourable basis swap and the strategic advantages of their credits with Asian investors could lead more Latin American borrowers to tap the renminbi market, said one LatAm DCM banker after BTG Pactual priced the first ever public renminbi bond from a Brazilian issuer.

BTG Pactual has opened books on the first ever renminbi public bond issue from a Brazilian borrower, setting price guidance in the 4.3% area and aiming for benchmark size, according to a banker working on the deal.

The series of international bond issues that had been expected from Peruvian corporates in the spring kicked off on Friday as consumer goods company Alicorp attracted a book of $4.4bn for a debut $450m 10-year deal.

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Mexican cement company Cemex obtained what bankers believed was the lowest ever coupon for a single-B credit in emerging markets, when it sold $600m of six year non-call three senior secured notes at par with a 5.875% coupon.

Extraordinary demand for high yielding paper continues to feed lower rated Latin American borrowers, but some investors sought to dampen the excitement this week as Grenada’s default served as a reminder that many parts of the region were still struggling.

Banco Santander Brasil sold R$750m ($385m) of three-year senior secured notes to international investors on Monday, in the third global local currency bond to come out of Latin America in three weeks.

Latin American supranational CAF (Corporación Andina de Fomento) is likely to issue a US dollar benchmark in the second quarter as recent upgrades lead it to target SSA investors over traditional emerging market bond buyers.

Deutsche Bank ended up sole bookrunner on Honduras’s bond deal, as Barclays had dropped out on Monday citing "recent developments relating to a required additional disclosure to the offering materials".