Mexico

Mexican miner Industrias Peñoles sold $600m of bonds on Thursday to keep Latin American primary markets ticking over as sell-side bankers expect only a trickle of deals from the region until September.

Industrias Peñoles, the world’s largest producer of refined silver, began investor calls on Wednesday ahead of a proposed $600m bond issue with the Mexican mining company largely unaffected by the impact coronavirus pandemic.

Mexican real estate investment trust Fibra Uno returned to the bond markets on Wednesday to price a postponed tap of its 2030 and 2050 notes.

Mexican lender Banorte and Colombia’s second largest telecoms company began investor calls on Monday as Latin American borrowers look for funding in the wake of a rally that reawakened issuer interest in bond markets.

Mexican real estate investment trust (Reit) Fibra Uno will monitor markets as it continues to look for liability management opportunities after pulling a proposed Reg S-only trade last week, the company’s capital markets vice-president has told GlobalCapital.

Two of Mexico’s best-rated issuers eased through bond markets this week, even as the country faces ever-worsening economic forecasts, while bankers said Latin America’s top names could issue multiple times this year.

Mexican real estate investment trust (Reit) Fibra Uno pulled a proposed dollar Eurobond issue on Wednesday as investors said they believed the issuer may have underestimated the importance of the bid from US Qualified Institutional Buyers (QIBs).

DCM bankers said that Mexican personal care products maker Kimberly Clark de México (KCM) was from the ideal sector for this market after it tightened pricing on a new issue sharply despite a difficult day in global markets.

Mexican real estate investment trust (Reit) Fibra Uno’s plans to return to bond markets were shaken on Tuesday when the issuer delayed pricing “as part of company protocol” when an earthquake hit the country.

BBVA is the latest large European bank to have suffered a ratings downgrade during the Covid-19 pandemic, with Fitch having moved the issuer’s debt ratings down by a notch blaming a weaker operating environment in Mexico and Spain.

Mexican conglomerate Fomento Económico Mexicano (Femsa) turned to international bond markets for the third time this year20 on Monday, clinching its tightest dollar funding of the year despite wider spreads.

Generals, and financial regulators, are always fighting the last war. So it proved when the coronavirus slammed into international markets in mid-March. Many of the tools developed in the 2008 financial crisis were deployed to great effect by central banks. The corners of the financial markets that propagated weakness in 2008 passed the test of 2020. But new risks were thrown up, forcing a new round of improvisation. What lessons will be drawn from the Covid-19 crisis?