Mexico

Mexican conglomerate Grupo Kuo sold $450m of 10 year non-call five notes on Thursday in its first international bond sale in five years, as bankers praised the issuer for its timing.

Mexico’s third largest lender Banorte will price its first ever Basel III-compliant additional tier one capital bond on Thursday after releasing initial price thoughts on Wednesday.

Pampa Energía’s peso-linked bond plans and Banorte’s proposed perpetual paper are the picks of Latin America’s bond pipeline, as the region’s issuers ready another wave of corporate issuance, despite a weaker market.

DCM bankers say that Taiwan’s Formosa market could offer compelling funding options for several Latin American bankers after Mexican utility CFE became the first Lat Am corporate to issue in it this week.

LatAm DCM bankers say they are expecting Mexican issuers CFE and Banorte to issue soon on the back of rating agency reports published late on Tuesday.

As the Mexican peso hovers around its strongest level since before Donald Trump won the US election last November, Grupo Kuo has announced fixed income investor meetings as it looks to refinance existing debt.

Mexican oil giant Pemex has met bond investors in New York as it prepares a possible bond issue later in the week.

Mexico City-based DCM bankers say that the mood among the country’s financial community has drastically improved since the start of the year, as Unifin on Wednesday became just the fourth Mexican credit to issue dollar debt in 2017.

Mexican financing and leasing company Unifin Financiera raised $450m of seven year bonds on Wednesday as bankers’ hailed the company’s improving reputation in the market.

Nomura has hired a veteran of Latin American bond markets as a managing director as it looks to build its business in the region.

Two high yield companies from Latin America will wrap up investor meetings on Tuesday ahead of planned dollar-denominated bond issues.

A glimpse of the future has arrived with the publication of a report modelling the credit risk banks face from drought. The effect on loan portfolios could be severe — and the research illustrates the new kinds of risk management banks will have to do as the world’s climate becomes more volatile.