Sigma Alimentos, a leader in refrigerated food goods in Latin America, priced a €600mn private placement through its existing curve off the back of strong demand from European investors, which were eager to get a piece of the company’s first investment grade transaction and its first trade in Europe.
When in 2008, large US and European banks left Central America as the economic crisis unfolded in developed markets, Colombian banks spotted an opportunity to take the lead in the region’s oft- overlooked financial system – a move that is paying dividends given the region’s strong growth.
The Odebrecht scandal could be a game changer for corporate governance in Latin America, with investors demanding more transparency in the way the region does business.
Mexico seems set on becoming a sustainable finance leader, but a lack of information and clear-cut regulations, and an increasingly volatile peso, seem to be holding potential green bond issuers back.
Few currencies have suffered more since the surprise election of Donald Trump last year than the Mexican peso. Trump made Mexico a cornerstone of his electoral campaign and attacked the Central American country on a number of issues ranging from illegal immigration to the renegotiation of the North American Trade Agreement (NAFTA), which put increasing pressure on the country’s currency and drove the country’s Central Bank to take drastic measures. Will the gambit pay off?
As populist politicians and leaders rise to prominence in the developed world, anti-globalist attitudes and protectionism are also entering the economic frame. With Trump casting doubts over the future of NAFTA and Brexit putting a strain on EU's economic integration, Richard Segal, Senior Analyst at Manulife Asset Management, considers some of the practical effects these policies may bring in the coming years.
While it's still a long way off, we believe markets will become increasingly focused on Mexico's July 1st 2018 presidential elections. Of note, in Mexico’s electoral system one need only win a plurality of the vote in a single round.
The notion that no party can walk away from the current Mexico-US confrontation unscathed is quickly gaining prominence among investors, issuers and observers. While investors are starting to move out of their short Mexican positions, analysts are split on what effect a Trump presidency, impending 2018 elections, and a new Central Bank governor will have on the country’s medium term prospects.
Sustainable energy and infrastructure projects across South and Central America are attracting attention from investors, but the outlook is challenged due to a lack of awareness on the ground.
Emerging market debt took a significant hit after the surprising victory of Donald Trump last November, which was followed by a US interest rate hike weeks later. Concern over the President-Elect’s protectionist policies provoked capital outflows and a significant spike in borrowing costs for US-linked EMs, freezing almost US$10bn worth bonds that were supposed to be issued by Latin American corporations at the end of 2016. Those deals have come roaring back.
- Mexico Central Bank Intervenes as Peso Drops Amid Trump Woes
- Pemex Issues US$5.5bn to Join Queue of Energy Firms Tapping Debt Markets
- EM Green Bond issuance to be Unaffected by Trump
- Donald Trump Presidential Win Broadly Negative for Emerging Markets
- EMs set for huge outflows on Trump victory
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