Mexico

BBVA Bancomer and Industrias Peñoles sold a combined $1.8bn of bonds on Thursday to follow up Grupo Bimbo’s blow-out trade earlier in the week as investors found a sweet spot in high quality Mexican corporate debt.

Alpek, the petrochemicals business of Mexican conglomerate Grupo Alfa, could become the next company from the country to make the most of attractive market conditions as it looks to the bond market to refinance short-term bank debt maturities.

Alpek, the petrochemicals business of Mexican conglomerate Grupo Alfa, will look to the bond market to refinance short-term bank debt maturities.

Latin American DCM bankers welcomed Tuesday’s blow-out bond issue from Mexico baking company Grupo Bimbo, saying that they believed it would trigger other borrowers to accelerate funding plans.

Three Latin American borrowers are meeting investors in advance of likely bond deals as primary market activity in the region looks set to pick up after a quiet August.

BBVA’s Mexican arm will look to sell Basel III-compliant tier two debt to fund a buy-back of old style subordinated bonds after launching a tender offer on Wednesday.

Industrias Peñoles announced on Tuesday that it will return to the bond market in September after a seven year absence. One investor called the mandate a “healthy sign” ahead of the September opening of the primary market.

Mexican lender Banco Mercantil del Norte (Banorte) is looking to sell its third Swiss franc bond, breaking a two-week hiatus in cross-border issuance from Latin American borrowers.

Mexican leasing company Unifin issued $200m of three year debt via a private placement this week on the back of reverse inquiry from an institutional investor.

As Latin American bonds suffer from broader market volatility, potentially closing the primary market window to riskier names, Fitch said on Monday that Mexico’s budget would be strained in the face of weak growth and lower oil revenues.

Swiss firm responsAbility Investments has closed a $175m microfinance CLO via JP Morgan, revitalising an industry which last saw issuance before the financial crisis.

Mexico responded to the lower rates environment on Tuesday with an opportunistic $3.56bn liability management exercise, shrugging off any credit worries to issue at a very slim concession.