Central America’s capital market activity is gradually picking up steam, and JP Morgan has been involved on some of the most noteworthy deals coming out of the region in the recent years. It’s no coincidence the bank wins the award for Investment Bank of the Year in Central America.
“2024 has seen increased activity from issuers in Central America and the Caribbean, especially in the corporate front, compared to 2023, thanks to continued stabilization in rates and some specific positive macro developments,” notes Moises Mainster, the senior country officer Andean, Central America, and the Caribbean at JP Morgan.
Countries including Guatemala, El Salvador, the Dominican Republic and Jamaica were among the most dynamic jurisdictions, although local markets continue to be underdeveloped and most issuers access either the bank or international bond market to raise capital, he says.
On the sovereign front, Central America and Caribbean issuers have been active as financing needs and refinancings continue to drive the market.
“We saw ground-breaking deals by El Salvador with an innovative debt-for-nature financing and Panama raising debt from JP Morgan on a bilateral basis,” Mainster points out. “The energy, telecom and infrastructure space has been quite active during 2024 for Central America and Caribbean issuers on the corporate front, while sovereigns continue to dominate volumes in the region.”
JP Morgan also participated in important deals from players such as US energy group EnfraGen and Guatemala-headquartered bottling company CBC. Mainster says that issuers in the region have looked for resources for a combination of capex for investments, acquisition financing and debt refinancing.
“Capex needs have increased with positive macroeconomic growth dynamics, new concessions being awarded, while refinancing continues to be the main driver for issuers to access the market,” he says.
“In 2025, we do expect more activity in some jurisdictions such as Guatemala, Dominican Republic and Panama in DCM and in M&A as well, including continued interest in international diversification by corporates based in Central America.”