Mexico

Mexican car parts maker Nemak sold $500m of sustainability-linked bonds on Wednesday in its first issue since it was spun off from conglomerate Grupo Alfa. Nemak’s deal was priced 25bp inside a recent SLB from its similarly rated peer Metalsa.

Bondholders of Mexican payroll lender AlphaCredit are facing very low recoveries, say credit analysts, after the company failed to pay a $15m coupon payment due on June 19 on its senior secured 2022s.

Mexican car parts maker Nemak is looking to become the latest Latin American company to issue a sustainability-linked bond, having begun investor meetings on Monday. Like other LatAm SLB issuers from the sector, Nemak is including a coupon step-up linked to Scope 1 and 2 greenhouse gas emissions — though the company has a separate target to reduce its far more significant Scope 3 emissions.

Brazilian steel producer CSN and Mexican building materials company Cemex continued a storming week for Latin American high yield issuance with new deals that attracted bumper orders and priced tight to bankers’ expectations — even if comparable deals were not always clear cut.

Mexican building materials company Cemex is looking to sell a perpetual hybrid bond that it believes will help it towards its target of building an investment grade capital structure.

Grupo Axo, the Mexican fashion retailer, sold $325m of five year notes on its international bond market debut on Tuesday, tightening the price as bankers said Latin America bond markets were in a sweet spot for new issuance.

Grupo Axo, the Mexican fashion retailer, began investor calls on Monday ahead of a possible international bond debut that is being marketed just days after BlackRock made a $45m equity injection into the privately held company.

Mexican food company Grupo Bimbo proceeded with a 30 year bond issue on Wednesday despite a US inflation reading that sent Treasury yields to their widest levels in a month. A strong bid from US investment grade buyers ensured a bumper order book, but some observers were surprised that the issuer had not delayed its deal in the face of a tricky market.

Four Latin America and Caribbean companies sold new issues in the dollar market at very tight looking levels on Thursday, as investors continue to feel pressure to put to cash to work amid extremely high liquidity.

Mexican industrial parks operator Corporación Inmobiliaria Vesta began investor calls on Monday as it looks to become the latest Latin American issuer to join the sustainability-linked bond (SLB) club. Though bankers continue to see LatAm companies obtaining pricing benefits from SLBs, a handful of recent deals are trading below re-offer in secondary.

After Mexican conglomerate Femsa became the first issuer from the Americas to sell a sustainability-linked bond (SLB) in euros last week, Latin America bond origination bankers say they expect the region’s companies to continue to embrace the format.

Chilean miner CAP and Mexican car parts supplier Metalsa on Thursday became the latest in a string of Latin American companies to price dollar bonds not only at the tight end of guidance, but inside the indicated range, as bankers say investors are being coy with bookrunners about their pricing expectations.