Scores and rankings of ESG – shorthand for environment, social and governance – factors has become supremely important for investors looking to funnel capital towards more sustainable activities, often on the basis that better ESG means more sustainable cashflow generation capacity and lower overall risk. But are there limits to the linkages that can be drawn between credit performance and ESG rankings?
RenovAr, Argentina’s flagship solar and renewables programme, has struggled in recent months due to the severe macroeconomic challenges weighing on the country. But as the country’s markets stabilise, developers focused on the region remain cautious as upcoming elections later this year could result in a change of direction. We speak with Martin Parodi, Managing Director, Total Eren Argentina, one of Argentina’s leading solar and wind power players, about the outlook for the country’s power sector and the factors influencing the company’s funding strategy.
A good way to evaluate the beginning of Bolsonaro’s government, in terms of economics, is to establish the degree of continuity with the previous government's agenda. In October, I argued that, in spite of the political renewal, it would be essential to continue the economic reforms initiated by Michel Temer. In this respect, there is both good and bad news.
As key reforms progress through the various arteries of Brazil’s governments, most investors and lenders remain resolutely optimistic about the market’s prospects – few more than HSBC, which recently announced its intention to significantly expand its presence in the country and re-establish itself as one of its top international banks.
President Bolsonaro loses focus all too easily. Instead of discussing public policies to promote growth and tackle high unemployment, he again criticized IBGE’s methodology for determining the unemployment rate. He says that these numbers serve "to deceive the populace," thus implying that the situation is better than the data indicated.
Latin American borrowers continue to see strong demand from lenders and investors following a hectic year of elections in many of the region’s largest economies. We speak with Mauricio Voorduin, Managing Director, Latin America Regional Head; David Costa, Managing Director, Head of Latin America Finance; Sara Pirzada, Managing Director, Loan Syndications; and Mark Tuttle, Managing Director, DCM at Mizuho Securities, a regional funding leader, about some of the key trends prevalent in the region’s markets throughout the first quarter of this year, and why it’s never been a better time of borrowers to move into the dollar markets.
The recent nosedive in the government’s approval ratings indicates at least one thing quite clearly: Bolsonaro’s honeymoon period is over, writes Zeina Latif.
Despite a slowdown in some of the Andean region’s powerhouse economies and souring emerging market investor sentiment, many borrowers were unperturbed and moved into markets with inaugural, innovative transactions through much of last year. We take a closer look at some of the transactions originating from the region that won top prize at this year’s Bonds & Loans Latin America Awards.
In elections last year, voters in both Brazil and Mexico opted overwhelmingly for populist candidates. To be sure, Latin American populism takes many shapes. In Mexico, Andres Manuel Lopez Obrador’s version (AMLO) promised significantly higher spending on social programmes and infrastructure. Brazil’s new President, Jair Bolsonaro, has pledged assertive efforts to clamp down on crime and boost security. While they may not share the same visions of prosperity or the means by which they are attained, the two leaders do share challenges, writes Brian Mullaney, Strategist, Global MacroViews.
As Bolsonaro nears three months in office, problems are beginning to pile up, but some bright spots in the economy provide a silver lining, suggests Barings Investment's Emerson de Pieri in his analysis.
- Argentina: An Economy in Election Mode
- Scrapped New City Airport, Struggling Pemex Dominate Discussions at HSBC Mexico Roundtable
- Brazil: The Battle for Reform
- SWOT Analysis: Brazil
- After Elections, Policy Uncertainty, Liquidity Concerns Weigh on Infrastructure Outlook in Americas
15 May 2019