Latin America
Off the Record: Low Rates Supporting Issuance Volumes in Latin America as Libor Transition Looms
In 2020, Latin America’s largest markets are largely going be to characterised by picky investors, persistently low yields, infrastructure development, LIBOR-related woes, and socio-political upheaval, according to dozens of bankers, investors, lawyers and credit ratings agencies who spoke with Bonds & Loans on a recent trip to the region. We’ve summarised the top five themes likely to drive the…
12 Nov 2019
As Contempt for Experts and Data Rises with Populism, US Economic Data Gains Focus
The rise of populism has engulfed countries across both developed and emerging markets, placing renewed pressure on state institutions to stay independent – often in the face of overt harassment from strongmen leaders. In the US, whose economic data informs the decisions and forecasts of finance professionals worldwide, the President’s cavalier attitude to facts raises questions regarding the…
8 Nov 2019
Latin American Democratic Institutions Are Under Attack – Should Investors Worry?
October 2019 was a shockingly turbulent month for South America, but what does it mean for international investor sentiment about the region, asks John Price, Managing Director at Americas Market Intelligence.
5 Nov 2019
Brazil: Focus of Debate on Public Spending Needs to Shift
There is often a lack of consensus among economists when it comes to public policy recommendations. While sowing confusion among the ordinary citizens, who cannot tell which side is “right”, this debate is an important element for the functioning of democracy and is healthy for public policy planning, argues Zeina Latif.
1 Nov 2019
Mexico’s Real Estate Sector Builds Momentum Even as Wider Markets Slow
A sleepy summer period for Mexico’s capital markets was awoken by a slew of real estate deals, including bonds issued by Fibra Uno and Terrafina, but the extent to which these issuances reflect sustained resilience and heightened activity in the sector, at a time when a slowing economy is posing challenges for most corporate issuers, remains unclear.
29 Oct 2019
HSBC Sees Green ‘Truly Entering Mainstream’ as Chile Takes ESG Funding Innovation to Next Level
Chile’s impeccably timed and well-executed debut foray into the Green bond market set a number of milestones, building on a growing pipeline of Green and ESG-linked transactions in the Americas, and reinforcing the trend that these formats are viable components of the funding toolkit for a broadening range of organisations. More impressively so, Chile executed its inaugural Green issuances in USD…
9 Oct 2019
Usiminas Completes Debt Refinancing, Sees Upside in Steel Demand Despite Oil Price Spike
Back in 2016, Brazilian steel maker Usiminas looked to be entering dire straits: the company was forced to renegotiate 92% of its debt and has been absent from the international bond markets since 2008. But as net debt fell to BRL5.5bn in 2019, its amortisation schedule improved and global funding conditions became more favourable amid rate cuts, the steelmaker returned to the international…
4 Oct 2019
Brazil: The Composition of Growth Matters
One of the consequences of low growth is that the economic recovery is not widespread across sectors. Some continue to perform well in the midst of stagnation – and even contraction, in the case of many others.
1 Oct 2019
Paraguay’s PPP Projects Push Paves the Path to Prosperity
Having survived a rocky stretch following last August’s presidential elections and the Itaipu Dam scandal, Paraguay’s incumbent president Mario Abdo Benítez has embraced the country’s decade-long PPP programme as one of the key drivers in his reforms agenda. He’s piqued the curiosity of international investors – will he now get their full attention?
26 Sept 2019
CASE STUDY: Terrafina Prices Benchmark Bond Below 5% as Mexican Real Estate Charms Markets
Terrafina, one of Mexico’s top real estate investment trusts, issued a USD500mn 10-year senior unsecured international bond that saw 5x oversubscription at peak and priced at an impressive 4.962%, joining a spate of issuances from the real estate sector – one of the busiest in terms of volumes in Mexican fixed-income.
19 Sept 2019