Latin America
Ferroport Debt Refinanced with Alternative Payment Schedules and “Funky” Use of Collateral
Ferroport’s USD350 million project bond issuance and Brazilian debenture bridge financing included very innovative uses of flexible payment profiles and cash escrow accounts. It was also rare 144z/RegS single-offtaker deal, carried out in a jurisdiction that is typically quite challenging for project financings.
22 Jan 2020
Engie Energia Heats Up Chile Bond Markets with USD400mn Bond
It is the latest in a series of bond deals out of the Andean region, as investors seem unfaced by the social protests engulfing one of Latin America’s most successful economies.
16 Jan 2020
Public Debt, Deficits to Undermine Latin American Countries’ Ability to Respond to Shocks - Fitch
Rapid growth in public debt and yawning fiscal deficits in a number of Latin American countries could erode the capacity of regional governments to weather a global economic downturn in 2020, according to a note from Fitch Ratings.
13 Jan 2020
LatAm NBFIs See Increased Funding, Liquidity Risk Amid Downturn – Fitch
Funding and liquidity will remain challenging to Latin America’s non-bank financing institutions (NBFIs) amid continued economic and political uncertainty on the continent, Fitch Ratings warned in a note to investors.
10 Jan 2020
Bolivia: Political Upheaval Undercuts Latin America’s Socialist Fairy Tale
The flight of Bolivia’s president Evo Morales following street protests and an intervention by the country’s armed forces was in some ways the least unexpected turn of events making waves across Latin America’s political landscape. While for the last decade the Andean nation has been a beacon of stability and high growth, much of it came from generous but unsustainable fiscal policies ripe for…
5 Dec 2019
Private Credit in Latin America: Helping SMEs Transition to Corporate Finance
The asset class that first came to prominence in the region several years ago is resurfacing in a big way, driven by investors’ hunger for yield and diversification, helping SMEs and corporates source alternative funding in the meantime. But questions are being asked about the sustainability of private debt were the global environment to deteriorate and liquidity to drain from the market.
28 Nov 2019
Colombia: Latin America’s Shining Star Dims amid Tax Law Setback
As the wave of social unrest spreads across Andes, investors are becoming wary of risks surrounding Colombia. In late October, the government presented a revised tax reform proposal to Congress after the initial bill was overturned due to procedural failings. While the new proposal is expected to pass, questions remain over the fiscal impact of the reform – and what it means for the outlook in…
26 Nov 2019
SWOT Analysis: Privatisation and Domestic Issuances Driving Markets in Brazil
Bonds & Loans examines the strengths, weaknesses, opportunities and threats facing the Brazilian market following a research trip to the region.
22 Nov 2019
What to Expect from Argentina in 2020?
Argentina celebrated the first round of Presidential elections in late October. Investors largely characterized the vote as a kind of referendum between a continuation of market friendly economic reforms by incumbent Mauricio Macri or a comeback to a more interventionist approach by challenging Alberto Fernández, who was leading a Peronist coalition – but there is good reason to believe things…
19 Nov 2019
CASE STUDY: Fibra Uno Secures Latin America’s First Sustainability-Linked RCF
The Mexican REIT followed up its June USD1bn issuance with an impressive USD1.1bn dual-tranche revolving committed credit facility, with the spread linked to pre-agreed sustainability KPIs, an instrument that was the first of its kind in the region.
15 Nov 2019