LatAm Bonds

Strengthening external accounts and favourable government debt dynamics have driven Fitch to become the third rating agency to place Colombia’s sovereign rating on a positive outlook.

The sell-off of Venezuelan government bonds that followed Tuesday’s news of the death of president Hugo Chávez continued into Wednesday. Venezuelan bonds had been rallying in recent months in anticipation of presidential transition, but the realisation that the South American country faces political uncertainty appears to have spooked markets.

Some of Venezuela’s bonds closed more than a point lower following the passing of President Hugo Chávez Frías at the age of 58 on Tuesday afternoon.

Honduras is looking to defy an uncertain fiscal outlook by becoming the next in a series of Latin American sovereigns to issue international bonds for the first time.

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Mexican telco América Móvil sold more than half of this week’s Ps7.5bn ($586m) tap of its 2022 peso-denominated bonds to Latin American investors, as LatAm bankers hailed the ever-growing importance of the local investor base.

At least seven Peruvian corporates have mandated banks to bring international deals in March or April, and at the very least four of these will be debuts.

Mexican telco América Móvil has attracted a book of Ps17bn for a Ps7.5bn ($584m) reopening of its 2022 peso-denominated senior unsecured global bonds.