LatAm Bonds

Mexican telecoms company Axtel has signed the $250m sale of 883 towers to the American Tower Corporation as it carries out a recapitalisation plan announced in mid-2012.

Cirsa, the Spanish gaming company, wants to add €100m to its €680m 8.75% senior unsecured 2018 notes.

Mexican oil company Pemex priced $2bn of 2023 notes on Wednesday, helping drive the week’s expected total Latin America volume of more than $6bn — subject to certain deals pricing late on Thursday or on Friday. That total could put it close to the top five biggest weeks ever for Latin American international debt issuance.

In a repeat performance of last year’s groundbreaking hybrid, Banco do Brasil late on Thursday printed $2bn of perpetual tier one bonds to yield 6.25% in what bankers said was an opportunistic trade to prepare the Brazilian lender for Basel III.

There have been three Latin American sovereign issues so far in 2013, and in all three the issuers have claimed records have been broken. After Mexico sold its cheapest ever 30 year money two weeks ago and Paraguay secured the tightest ever debut issue for a sovereign (see below), Colombia was encouraged to tap the capital markets for $1bn in 10 year notes on Tuesday.

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There have been three Latin American sovereign issues so far in 2013, and in all the issuers have claimed records have been broken.

Colombia’s third largest bank, Davivienda, made its second outing in the international capital markets on Tuesday, pricing $500m of senior unsecured five year notes late in the day via Credit Suisse and JP Morgan.

A majority of bondholders has agreed to tender Mexican telecoms company Axtel’s 2017 and 2019 dollar notes in exchange for a combination of cash, a new senior secured note in US dollars and a new senior secured convertible bond in Mexican pesos.

The 4.625% yield may have been tighter than fair value in some eyes, but the success of Paraguay’s $500m debut dollar bond has delighted the sovereign as it makes its entry into the international bond markets.