Mexico

Mexico showed that even trickier credit stories could take advantage of the borrower-friendly rates environment, surprising many with a $3bn liability management exercise just two weeks after finance minister Carlos Urzúa resigned.

Debt capital markets bankers say more Mexican companies could rush to bond markets, as strong conditions for issuance outweigh the increasing concerns surrounding the direction of the country's economy.

Mexican leasing company Docuformas offered a double-digit yield on its return to bond markets but was able to issue twice the amount of its last deal, offering its first index-eligible bond in the process.

Real estate investment trust (Reit) Fibra Terrafina sold $500m of 10 year bonds on Monday, with hefty tightening allowing the borrower to price closer to its largest Mexican rival than expected.

Debt capital markets bankers covering Mexico do not expect the resignation of finance minister Carlos Urzúa on Tuesday to affect incoming bond issues though they acknowledge that his departure could create uncertainty.

Two Mexican companies announced bond roadshows on Monday, in combination with buybacks of 2022 notes, as Latin American borrowers continue to try to use liability management to take advantage of low rates to refinance debt.

Two Latin American companies announced bond roadshows this week, with a third launching a tender that will require a new issue, as the region’s issuers flock to the low rate environment and gradually rehabilitate disappointing issuance volumes.

Mexican leasing company Docuformas is likely to turn to bond markets in the coming weeks, GlobalCapital understands, after announcing a tender offer and consent solicitation for its existing notes.

A majority of Mexican car parts maker Metalsa’s bondholders agreed to amend parts of the indenture to grant the company more flexibility regarding sales and mergers.

Mexico showed that it still has full access to its regular funding markets this week as Japanese investors gave the sovereign its largest ever order book in the Samurai market, on the way to its largest deal in the currency.

Broader volatility could not interrupt Latin America’s rediscovered bond market momentum, as Mexican real estate investment trust (REIT) Fibra Uno tapped international investors for the first time in three years on Tuesday.

Fibra Uno, the largest and most diversified real estate operator in Latin America according to Fitch, could price a new dollar deal as soon as Tuesday.