US Shops Lead DCM into Home Stretch

Heading into what could still be a very active final few weeks of 2012, JPMorgan leads the DCM league tables for LatAm cross-border issuance, while Citi is on top when both local market and cross-border transactions are included, according to Dealogic data. The region as a whole had issued $142.24bn total through Tuesday from 344 deals, including $110.50bn from 173 cross-border transactions. Both marks have already passed 2011’s respective $134.21bn and $94.89bn full-year totals to set new records. “There remains a lot of liquidity in the market, and it is there for investment-grade issuers and also moving down the credit spectrum,” says a senior banker at one of the top shops. Of the cross-border total, $20.3bn has come from double and single-B issuers, down from $32.7bn in the corresponding period in 2011 and reflecting the large portions of 2012 that were closed to lower-rated credits. In the overall rankings, JPMorgan has booked $13.51bn from 46 deals in the cross-border space, to lead HSBC ($12.94 from 51) and Citi ($12.71bn from 47). When domestic market transactions are added, Citi’s $18.73bn from 89 deals put it ahead of HSBC ($15.78bn from 82) and JPMorgan ($13.58 from 49). Bankers, already anticipating the traditional January rush, still see a few weeks of activity starting Monday. In the high-yield space, Mexicans Posadas (planning a $225m 2017) and Grupo Kuo ($200m 2022) are preparing issuance for next week, as is Colombia and Brazil-focused driller Tuscany International ($200m 2019). Grupo Mexico’s Mexico Generadora de Energia is testing the project bond market with a $564.2m 2032, and Cencosud is set to bring a $1bn 2022. In the sovereign space, El Salvador is expected this month with what should be a $500m-$800m 10-year.