LatAm Bonds

The International Finance Facility for Immunisation (IFFIm) marked the one year anniversary of its $1bn bond issue launched in November 2006 at a donors’ meeting in South Africa this week, highlighting the benefits the deal has brought to health programmes in developing countries.

TIGHT credit conditions and investor risk aversion were forcing Latin American issuers to postpone or downsize their bond deals this week, dashing hopes of a pre-Christmas flurry — although there were signs of life in Mexico.

SVENSK Exportkredit’s visit to the Mexican peso market was the pick of a restricted week in niche currency bonds, as investors concentrating on their core positions shunned the niche markets.

The Venezuelan economy is diversifying, and next month’s constitutional referendum should strengthen confidence, according to president Hugo Chávez’s roving representative in Latin America. Erick Rodríguez told Emerging Markets, EuroWeek’s sister publication, that non-oil growth reached 10.8% in the second quarter of 2007.

Venezuela closed an auction for $500m of bonds in its Venezolano II package yesterday (Thursday), with results due to be announced today.

At least some now believe that a swap out of Ecuador’s contentious bonds — particularly the global 2030s issued during a 2000 restructuring — is the most likely outcome.

Standard & Poor’s raised Ecuador’s long term credit rating two notches from CCC to B- on Tuesday, citing diminished risk to timely servicing of the country’s $3.86bn of outstanding global bonds over the coming year.