Latin America
Will Argentina’s Unions Stand in the Way of Macri’s Reforms?
The Argentinian labour unions are among the most powerful in the region; old allies of the Peronist Party, they are well known for the ability to take out presidents. So as conservative president Mauricio Macri tries to implement “market friendly” policies, will the unions stand in his way?
21 Jul 2017
Latin America Credit Markets Brief: July 5 - July 19
CAF approves US$592mn credit facility to Latam nations - Grupo México to get US$1.55bn loan from BBVA and Credit Suisse - A major new oil field discovered in Mexico – Ex-Brazil leader Lula convicted - Brazil's Senate approves labour reform bill - The province of Buenos Aires taps European markets with EUR500mn bond – PDVSA seeks to renegotiate debt
19 Jul 2017
Carlos Martabit, CFO of Banco Estado: Chile’s Economy is on the Rise
2017 has certainly been the year for EM securities, as investors are driven out of the developed world by low rates. Bonds and Loans talks with Carlos Martabit, CFO of state-run Banco Estado, about the outlook for the Chilean economy, the Bank's funding strategy and the importance of reforming South America’s richest nation capital markets in its path to economic recovery.
17 Jul 2017
CASE STUDY: BNDES Prices Flat to Secondaries on Largest Brazilian Green Bond to Date
The Brazilian National Development Bank (BNDES) made its first foray into the capital markets since 2014 a huge success when it priced the country’s largest green bond flat to its secondary curve, tapping into new liquidity pools in Europe and extending the tenor of its existing debt.
5 Jul 2017
CASE STUDY: Votorantim Cimentos Restructures Debt Through Canadian Subsidiary
VCSA’s debut issuance through its Canadian subsidiary saw 3.7x oversubscription rate on its long US$500mn 10-year notes, allowing the company to optimize funding and extend average debt life at minimal cost.
30 Jun 2017
Should Indexing Remain a Business?
In constitution and performance, indexes are in large part designed to act as a mirror to the markets they reflect, with investors largely vying for ways to exploit information deficiencies and fleeting hunches to beat them. But in emerging markets, there is a huge discrepancy between the assets that compose these indexes and the actual asset class, raising fundamental questions about the purpose…
26 Jun 2017
CASE STUDY: Minerva Sees Aggressive Pricing on US$1bn Bond
Brazil beef giant tapped Minerva took advantage of favourable conditions in emerging markets to sell a US$1bn bond due 2026, which priced inside the company’s yield curve at 6.625%.
21 Jun 2017
Emerging Markets: Keep Calm and Carry Trade
Emerging market corporate bonds have become a hit with investors in recent years as improving fundamental and good governance practices have sent default rates plunging to record lows. Despite fears around an EM debt bubble emerging, fund managers seem resolutely upbeat about the asset class.
31 May 2017
CASE STUDY: Petrobras Reopens Latin American Credit Markets with US$4bn Trade
After a challenging year for Brazilian credit markets and a broader lull in the Latin American markets following the US election, Petrobras found a narrow window to launch a US$4bn dual-tranche bond as part of a liability management exercise that was oversubscribed by 5x.
19 May 2017
CASE STUDY: Rumo Finds Tight Window for US$750mn Bond Debut
Brazilian rail logistics leader Rumo S.A. made a strong international capital markets debut with a US$750mn 2024 bond offering that priced at the tight end of guidance despite broader uncertainty around emerging markets.
12 May 2017