Omega Geração S.A., one of Brazil’s top renewables players, debuted in the local debenture markets earlier this year with a carefully tailored four-part transaction that could serve as a template for corporates looking to finance infrastructure by tapping the country’s diverse liquidity pools.
One of the most important public issues in every country is Social Security. That is normal. Retirement is too serious a matter to be disregarded by the State. Human beings are not always rational and their choices might also be based on subjective factors, such as the importance given to social status. Individuals can choose to consume too much today and not save for retirement. The result would be poverty in old age. This is a problem faced by Japan, where social security rules are very restrictive, but it could easily make its way to Brazil.
Investors are suddenly much more concerned about the political transition in Argentina, but default is by no means a certainty, argues Ashmore's Gustavo Medeiros, and opportunities abound.
As the Odebrecht scandal continues to resonate across Latin America, Peru remains one of the hardest hit regional economies, suffering the fallout both on its political establishment and subdued foreign investment at a time when the public sector is retrenching from key economic segments. The unexpected success of the referendum in January opened a path towards reform that could revitalize the country’s credit markets, but that can only happen once the political deadlock is resolved.
The unprecedented 6-tranche multicurrency project financing was one of the first post-Odebrecht transactions to close in Colombia, and saw the arrival to Latin America of the Austrian developer Strabag, for whom this was also one of the biggest deals of this type in its history.
Joelmir Baumgratz discusses increasing capacity for less cost, consolidation in the airlines market, oil price fluctuations driving complex hedging strategies and using air miles as collateral on financings to bring yields down.
Fibra UNO, the first and largest real estate investment trust (REIT) in Mexico, was able to upsize its dual-tranche USD1bn bond with an innovative “long-distance” roadshow that saw over 4x oversubscription from a variety of international investors.
A minnow country by most economic measures, Paraguay has for years combined some of the most progressive policies in the social and environmental sphere with antiquated financing models and realpolitik. But with a steady pipeline of deals emerging in the infrastructure and energy space, it is beginning to attract attention of foreign investors seeking higher yields in unfamiliar or exotic locations.
EM remains under severe pressure. The less dovish than expected Fed, renewed trade tensions, and a broad-based dollar rally have conspired to absolutely crush EM FX and equities. These drivers are likely to carry over into this week and so we remain bearish on EM.
Bonds & Loans interviews Bruno Moraes, Director (Energy) at Actis, about investment prospects in the Brazilian markets, Actis's focus on renewables and their new infrastructure fund.
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