Latin America
Beyond Green Bonds, Sustainability Certification Brings Broader, Deeper Benefits
Since 2012, Vigeo Eiris has provided almost 60 second party opinions on ESG transactions for a diversity of issuers and sectors – about 20% of the market’s supply as of 2016 – which gives the company a privileged position from which to observe the market, both developed and emerging. The company was the first opinion provider for a corporate ESG issuance, launched by Air Liquide, and has worked…
12 Sept 2017
Argentina’s Government is Electrifying the Power Sector, but Risks Remain
When Mauricio Macri took office, one month’s electricity bill was cheaper than a coffee for the medium-income inhabitant of the city of Buenos Aires. Porteños (the citizens of Buenos Aires) were accustomed to having their air conditioning turned on for the entire day while at the same time opening the windows of their apartments to rebalance the temperature. Meanwhile, electricity users in this…
11 Sept 2017
Case Study: Investors Splash Out on Rotoplas’ Debut MXN2bn Sustainability Bond
Mexican water products manufacturer Grupo Rotoplas saw tight pricing on the company’s – and the Latin American market’s – first sustainability bond to date, a very strong debut made more impressive by the fact that it was launched amidst one of the weakest primary markets Mexico has ever experienced.
7 Sept 2017
Mexico Navigates External Challenges in Race to Impress Investors
Mexico’s economy has been on a rollercoaster ride over the past year. It saw budding progress from the reforms of the previous three years emerge early on, only to be bashed and beaten from all sides by the bearish sentiment around emerging markets stemming from the rise of Donald Trump. In recent months, however, economists have observed, with much relief, that the economy is beginning to…
5 Sept 2017
Industrial Action Threatens Reforms, Economic Performance Across Latin America
As Latin America’s political leaders are forced to enact painful reforms to put region back on a path to growth, some are concerned that social discontent could hold them back.
1 Sept 2017
Latin America Credit Markets Brief: 17 August – 30 August
Britain plans to double trade with Panama and Colombia – El Puerto de Liverpool tapped the local markets with a MXN10bn dual tranche bond – BNDES to transfer funds back to the government – Vale redeems 2019 notes – Argentina to tap the international markets again – Argentina holds rates – Crystallex to seize PDVSA assets –– Chile’s outlook gets downgraded – Jamaica to tap its 2028 and 2045 notes
30 Aug 2017
A Brazil Disconnected?
Despite lots of talk about the congressional support for Michel Temer, the situation has not been favourable for the fiscal agenda. Since the approval of the constitutional amendment establishing the spending cap, where important work was done by its rapporteur in the Chamber, Deputy Darcísio Perondi, no other matter for adjusting the public accounts has made significant progress.
29 Aug 2017
Emerging Market Regulators Make Strides Building Green Bond Momentum
Growing support for market-driven policies aimed at facilitating green issuance has created important wins for the sustainable finance segment, especially in emerging market countries like China, India, and Mexico. But with the bulk of those policies, at their core, fixated on determining what qualifies as ‘green’, key questions about industry standards – and the best approach to applying them –…
25 Aug 2017
CASE STUDY: Nafin’s Yen Bond Cuts a Clear Path to Japan for Mexican Banks
Nacional Financiera SNC (Nafin) became the first Mexican agency to place a Yen bond in 14 years, following in the footsteps of the sovereign to price a JPY10bn 5-year bond at just 68bp over Yen midswaps.
24 Aug 2017
Capital Market Reform: An Outstanding Bill for Argentina’s Economy
Argentina’s local markets have trailed behind its South American peers for years, and president Mauricio Macri’s ambitious reform package aims to change that; it will depend, however, on him securing enough political capital in October’s midterm elections to pass the legislation through Congress first.
21 Aug 2017