Latin America

Chilean state-owned oil company Enap (Empresa Nacional de Petróleo) showed Lat Am credits can still raise bond funding on Tuesday, though its latest deal is unlikely to have borrowers racing to markets.

Fitch took swift action on Wednesday Mexico’s rating after incoming president Andrés Manuel López Obrador (Amlo) cancelled the capital city’s proposed new airport, placing it on negative outlook.

Chilean state-owned oil company Enap (Empresa Nacional de Petróleo) raised $680m of amortising 11 year notes on Tuesday in a drive-by trade that showed Lat Am borrowers are still willing to battle tough conditions to get funding done.

Bondholders in Mexico City’s proposed new airport were left speculating how Andrés Manuel López Obrador (Amlo), the country's president-elect, planned to return their money on Monday after the said he would cancel the project.

Brazilian bonds were only slightly up on Monday morning after right-wing Jair Bolsonaro’s victory in Sunday’s presidential election was deemed to be mostly priced in. And analysts looking beyond the promise of market-friendly policies said that the president-elect’s polarising views could make much-needed fiscal reforms difficult.

GE Capital’s former Mexican equipment finance business, known as Engenium Capital, is set to give Latin American debt markets a new test with a proposed subordinated perpetual bond offering.

The Republic of Peru may not have yet announced the dual-tranche dollar and nuevo sol trade that it is understood to be planning, but the sovereign opted this week to get going with liability management anyway.

A volatile week with certain Latin American companies failing to announce deals after completing roadshows is not putting other credits from the region off trying their luck.

Latin American financial institutions are continuing to find attractive opportunities in niche markets this week, though the best rated of them all told GlobalCapital it could turn to public bond markets soon.

Panama’s Banco La Hipotecaria is planning to sell its first covered bond. The five year 144A/Reg S deal will be structured under a contractual framework and privately placed.

Aeropuerto Internacional de Tocumen, the airport of Panama City, said on Wednesday that it wants to tap its existing 30 year bonds for a further $650m as Latin America issuers appeared keen battle through tough market conditions.

Emerging market issuance is picking up steam once more, despite the weakening across the board in secondary levels.