Mexico

Mexican financing and leasing company Unifin Financiera returned to bond markets on Monday for the first time in 18 months, garnering sufficient demand to push the yield on its new $400m eight year into single digits.

Credit Suisse has tapped a rival bank to fill a spot on its emerging markets syndicate desk in New York, GlobalCapital understands.

Mexican non-bank lender Unifin Financiera is planning an eight year bond issue of up to $500m, with up to $200m set to come via an exchange offer for existing bonds. But bondholders participating in the exchange are unlikely to receive much by way of increased returns for pushing out their maturities.

Four heavily oversubscribed Latin American new issues fetched tight pricing on Thursday, dispelling the unease felt at the week’s start and putting the region firmly on track to fulfil the predictions of record primary volumes for a January.

Just over a week after it reopened EM bond markets with a dollar deal, Mexico is turning to euros for a dual tranche new issue as part of a liability management exercise.

Mexican firm Nueva Elektra del Milenio sold $500m of seven-year senior secured bonds on Tuesday, benefiting from a structure that granted it an investment grade rating.

Mexican lender Crédito Real on Monday became the first Latin American non-bank financial institution (NBFI) to tap international bond markets since the coronavirus pandemic began as it raised $500m of seven year debt.

Mexican non-bank lender Crédito Real began investor calls on Wednesday as it looks to take advantage of highly liquid bond markets to partially refinance a bond maturing in 2023, and simultaneously align the covenant packages on all of its senior unsecured bonds.

Nueva Elektra del Milenio, the company that operates the retail store and money transfer businesses of Mexico’s Grupo Elektra, will begin virtual meetings with bond investors on Wednesday as it looks to sell a senior secured bond collateralised by remittance flows originated in the US.

Mexico reopened the international bond market for EM borrowers on Monday by issuing the first Formosa bond from a Latin American sovereign in response to interest from Asian investors.

Mexico returned to familiar territory by becoming the first Latin American borrower of the year to issue bonds on Monday. The format, however, was less familiar, as the 50 year SEC-registered $3bn bond — launched at around 11am New York time — will be listed on the stock exchanges of both Luxembourg and Taipei.

Despite funding stresses in certain Latin American countries, bond markets will continue to help the region with its financing needs. For now, this eases the pressure for reform and fiscal consolidation, but issuers must eventually face up to political and social turbulence. Oliver West reports.