Latin America

Lat Am bond bankers and investors may not have found an answer to Monday’s hot topic of the subordination premium on AES Gener’s junior subordinated hybrid, but the issuer left no doubts about the market’s appetite for paper with a highly oversubscribed trade.

Government-owned Costa Rican lender Banco Nacional de Costa Rica (BNCR) will wrap up a tender offer for its dollar bonds ahead of schedule after the early-bird stage of the buy-back was oversubscribed.

More Latin American issuers could look for 30 year debt in international markets, said DCM bankers after Petrobras sold its first new note at that point of the curve since 2014.

Banco do Brasil returned to dollar markets on Wednesday, taking advantage of scarcity value to snatch a tight five year senior unsecured benchmark.

Cement company Cemex brought hope for the Mexican bond pipeline as it turned to Europe to become the first Mexican credit to issue internationally since January, while the sovereign also crossed the Atlantic for investor meetings this week.

Bond investors embraced pan-emerging markets telecoms company Millicom International Cellular’s debt-funded acquisitions in Central America as they piled into the company’s latest bond and continued to demand the paper in the grey market.

Banco do Brasil became the second state-owned Brazilian issuer to tap dollar markets in two days as it snatched a tight five year senior unsecured benchmark.

Cement company Cemex became the first Mexican credit to issue internationally since January as it tapped European investors for a new seven that it will use to refinance existing debt.

After the quietest start to a year in nearly a decade, Latin American primary markets jolted into action on Tuesday with Brazilian oil giant Petrobras making the biggest splash.

Cemex is back in the bond market after a year and a half’s absence, opening books on a senior secured bond in euros.

Chilean power generation company AES Gener is looking to take advantage of favourable market conditions and cut its funding costs by issuing a new subordinated note to refinance a similar instrument.

The operator of Ecuador’s largest airport finally raised the bond market funding it was seeking on Friday, eventually increasing the size of the deal by $50m as some investors were attracted to a rarely seen yield.