LatAm Bonds

The sterling market welcomed a rare issue from the World Bank this week, which took advantage of improving arbitrage into dollars and scarce supply to launch its first sterling benchmark bond since early 2008.

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Codelco, the Chilean state-owned copper producer, was poised to price a 10 year benchmark on Thursday evening, while a pair of Brazilian borrowers are preparing perpetual deals. But Latin American cross-border debt markets took a breather this week with thin trading volumes as markets braced themselves for next week’s US Federal Reserve meeting.

Investors and bankers were given a degree of clarity on the mechanism of the European Financial Stability Facility this week at meetings held in Frankfurt, Paris and London.

Mexico revived the JBIC-guaranteed Samurai bond sector this week, with its first such issue since December 2009.

Petroleos de Venezuela (PDVSA), Venezuela’s state-owned oil company, has issued a jumbo bond in bolivars while also attempting to exchange $3bn of international debt due next year into a new 2013 line. Citi is managing both transactions.

Tapping the market for 10 year US dollars and euros this week, French agency Caisse d’Amortissement de la Dette Sociale (Cades) faced challenges that might have made other issuers blanch. Included here is a leap in the borrowing requirement to Eu70bn next year.

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