Some bond issuers in Latin America plan to hold back on issuing new debt until they feel more certain about the economic policies of US President-elect Donald Trump.
“We were predicting an active LatAm pipeline after the election until Thanksgiving, but now it is unclear,” one investor said.
One debt capital markets banker said issuers are waiting for more clarity on Trump’s proposed economic polices before deciding whether to move forward with bond offerings. A handful of issuers, however, are still looking to tap the market, with announcements still possible in the next few days, the banker said.
Aeropuertos Argentina 2000 (AA2000) is assessing market conditions ahead of a potential benchmark-sized 2026 note. AA2000, a unit of Corporación América, has hired Oppenheimer to arrange the offering.
However, Inversiones Atlántida, the largest financial group in Honduras, and Colombia’s Tecnoglass are likely to rethink plans to issue new notes. Both issuers were considered good credits for investors seeking higher yields, but a third investor said the bond sales might be off the table for now.
Atlántida is on the road with Oppenheimer until November 11. The firm could issue bonds if it is willing to pay a premium and finds a selective investor base, the investor said. Tecnoglass, which wrapped up investor meetings this week ahead of a potential $225m bond sale, could scrap plans because of its dependence on the US market, the same investor said.
The province of Entre Rios in Argentina is also evaluating market conditions and concluded investor meetings last week ahead of a possible $250m bond sale with Citi, HSBC and Santander.