Latin America

Mexican government owned lender Bancomext’s latest bond traded up on the break on Friday as Latin American new issue markets continue to benefit from huge inflows into EM bond funds.

A welcome trio of non-Argentine corporate issuers provided variety to the Latin American new issue market this week, with all three achieving the rare distinction of being praised by DCM bankers both for their timing and for not pushing investors too hard on pricing.

The Central American Bank for Economic Integration could return to benchmark issuance in 2017, after this week selling $72m-equivalent of green paper to Japanese retail investors in its first ever SRI transaction.

EM bond investors said they expected a strong local bid to push new bonds from Chilean government-owned oil company Empresa Nacional de Petróleo (Enap) tighter after the company raised $700m of 10 year senior unsecured bonds on Tuesday.

Lat Am bond bankers said Brazilian mining giant Vale had timed its second bond issue of the year to perfection, but the bond left investors happy too as it popped in the grey market on Wednesday.

CEEMEA is focused on one issuer this week, Ghana, as Latin America borrowers ignore the summer break.

Bancomext, the Mexican government development bank run by the country’s former public debt chief, Alejandro Díaz de León, will ready a subordinated bond issuance on Wednesday with investor meetings in five cities.

Chile’s national oil company Enap raised $700m of senior unsecured bonds on Tuesday as an attractive new issue concession tempted investors despite the company’s high leverage.

Honduras-headquartered development bank Cabei (Central American Bank for Economic Integration) has issued its first ever green bond through a South African rand-denominated note sold to Japanese retail investors.

Potential bond issuers from Argentina continue to work on new deals despite fears from bankers and investors that the buy-side is beginning to tire of issuance from the country.

Chilean state-owned oil company Empresa Nacional de Petróleo (Enap) will look to tap the bond markets next week to fund a buyback of existing debt as Latin American companies continue to turn to tender offers just as often as the new issue market.

Citigroup has issued on Thursday an unusual €374m bond, exchangeable into shares of Telekom Austria, as part of a deal that enabled América Móvil to reduce its stake in the company, fulfilling an earlier promise, without suffering a big fall in the share price.