Mexico’s economy continued to grow in Q2 – Brazil to freeze spending– Petrobras boss arrested on corruption charges – IMF upgrades Argentina’s growth forecast – YPF tapped the international markets with a US$750mn bond – Banco de Bogota issued unsecured notes worth US$600mn – Graña y Montero signed a syndicated loan – US imposed sanctions on Maduro – Banco General issued a 10-year bond – Dominican Republic gets upgrade
CAF approves US$592mn credit facility to Latam nations - Grupo México to get US$1.55bn loan from BBVA and Credit Suisse - A major new oil field discovered in Mexico – Ex-Brazil leader Lula convicted - Brazil's Senate approves labour reform bill - The province of Buenos Aires taps European markets with EUR500mn bond – PDVSA seeks to renegotiate debt
Green bonds are well on their way to becoming a mature asset class in the US and Western Europe, but they’re only just starting to take off in Latin America. Yamur Munoz, Director of Debt Capital Markets for HSBC in Mexico, speaks to Bonds & Loans about the progress the country has made in developing the sustainable finance segment and HSBC’s role in bringing green bond issuers to market and helping them overcome some of the asset class’ misconceptions.
Global debt reaches US$21tn – Mexico’s Central Bank completes annual hiking cycle – Brazil’s Temer indicted with corruption charges – Banco Mercantil del Norte places US$900mn – Argentina’s Cordoba province taps international markets with US$450mn bond – Colombia Movil closes US$300mn syndicated loan – Ecuador downgraded by S&P from ‘B’ to ‘B-‘ – Discounted Venezuela bonds now trading on Wall Street
Sigma Alimentos, a leader in refrigerated foods with presence in Mexico, Europe, USA and 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?
- Protectionism and the Market Repercussions
- Mexico: Currency is Undervalued, but Politics Holds Forth the Possibility of an Unexpected Outcome
- Mexico, US: Is a Mexican Standoff Inevitable?
- Sustainability Drive Sparks Green Bond Interest Across South, Central America
- LatAm Dollar Pipeline Swells but Local Currency Deal Outlook Uncertain