Mexico once again leads the pack for its sophistication in well-timed, tightly priced sales and a number of groundbreaking deals
Category: Bonds
Posted inMagazine
Sovereign debt: Next in line?
Bolivia and Paraguay have shown the bond market is open for riskier credits at exceptionally low rates. An Ecuadorian benchmark may push the limits of incredulity – but might not be so farfetched
Posted inMagazine
China: Forward march
After years of tentative steps, China’s banks are poised to expand aggressively in Latin America
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Mexico: Turning point
Mexico’s state finances are set for an overhaul under a new economic reform plan. But short-term borrowing is causing concern
Posted inMagazine
Mexico banking: Rules of the game
Mexico’s banks hope to benefit from the country’s fast-tracking of new global regulations
Posted inMagazine
Debt: High-yield leaps then stumbles
High-yield credits surfaced earlier than usual this year and dominated issuance in the first weeks of 2013, taking advantage of an uptick in risk appetite. But by February, sentiment had started to turn amid a pick-up in US Treasury yields – and several transactions were shelved
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Costa Rica | Banking Sector: Holding steady
Costa Rican banks are confronting tighter credit controls as authorities grapple with an explosion in dollar lending. The central bank insists such moves are a necessary evil
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Costa Rica | Capital markets: Blue sky thinking
Heavy government debt issuance locally has put a damper on Costa Rica’s fledgling capital markets. Yet dynamism is coming from specialized areas
Posted inDaily Brief
AES Unit Closes Debenture
Brazil’s AES Sul has completed the sale of BRL290m ($147m) in domestic bonds, according to Anbima. The 2018 debenture pays the DI+1.25% and amortizes in two equal parts during the final two years. The electric distributor is raising funds for investments and for working capital. BTG Pactual managed the transaction, rated AA minus on a national scale and done under the rule 476 restricted format.
Posted inDaily Brief
Banks Add to Mexican DCM Momentum
While the cross-border bond markets remained dormant this week, the Mexican local market is wide open, at least for plain vanilla sales, with Inbursa raising MXP6bn ($466m) and government development bank Bancomext pricing a MXP2bn sale. The market for securitizations, however, was a bit more questionable – a third deal of up to MXP3.5bn from bus operator IAMSA still waited to cross the finish line late Wednesday. Carlos Slim-owned Inbursa priced its floating-rate 2016 at TIIE+25bp, flat to 25bp guidance. Proceeds will be used to maintain and improve the liquidity profile of the bank’s balance sheet and meet its operational requirements. BBVA Bancomer, Banamex, Banorte-Ixe, Bank of America Merrill Lynch and Inbursa managed the sale, rated AAA on a national scale. Inbursa previously raised domestic funds in November, through a MXP8.05bn sale. Meanwhile, Bancomext has clinched a MXP2bn 2023 bond with what is called the lowest-ever domestic coupon for a government development bank. The sale came at 5.61%, or Mbonos+50bp, in line with 50bp guidance. The deal was 2.3x subscribed, with Afores driving the bulk of demand. Proceeds will be used to fund the development bank’s lending portfolio. BBVA Bancomer, Banamex and HSBC managed the deal, rated AAA on a national scale. The deal was the bank’s first since November, when it printed a MXP2bn 10-year bond at a fixed rate of 5.94%, or Mbonos+50bp. Fellow government lender Banobras priced a MXP3bn 2023 bond at 5.64%, or MBonos+50bp, in January. The fate of IAMSA’s 15-year bond backed by bus revenues remained to be decided Wednesday night. Santander is managing the sale, which was to follow a MXP4.2bn 2038 toll road securitization priced by the Monterrey-Saltillo concession Monday, at a wider than intended level with books barely covered. Both transactions had been put off last year to await better conditions. A 30-year road securitization by IDEAL and a 22-year MXP1.8bn hospital service contract-backed sale from Desarollo y O