Bonds & Loans speaks with Arthur Rubin, Head of Latin America DCM, SMBC Nikko Securities America, Inc. at the Bonds, Loans & Derivatives Andes 2017 conference about the macro-economic risks facing the Andean region, and the credit market outlook in 2017.
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.
Engineered by Goldman Sachs, this first-of-a-kind multi-tranche dual-currency hybrid financing package for the Pacifico 3 highway became the first UVR-denominated issuance in the world and marks a new era in Colombia’s infrastructure PPP financing.
Bancolombia’s green bond was the first green bond issued by a private financial institution in Latin America and the first green bond in Colombia, potentially opening the market to a slew of local currency-denominated issuances.
In April 2016 pan-American conglomerate Grupo de Inversiones Suramericana S.A. followed up its record-breaking 2011 bond with a US$550mn issuance, which was used to repay a bridge loan posted a month earlier and fund the acquisition of RSA’s Latin American operations.
Traditionally only Chile’s big corporates and state companies would choose to tap international markets, while the rest would get local financing. That may all change with Euroclear’s launch of settlement, custody and related services for cross-border Chilean domestic debt.
Chileans are increasingly frustrated with deflated pension rates, but blaming AFPs may not be the most constructive solution. A new set of pension reforms could provide the first step to spreading the financial burden more evenly between workers and employers.
Colombia’s Promigas marked its first foray into the syndicated loan markets by securing a US$200mn 5-year unsecured facility, allowing the company to consolidate its existing debt at more aggressive pricing while broadening its funding base.
With stable GDP growth, strong demographics and a flurry of infrastructure programmes under way in the Andes, the region’s banking sector needs to provide the financial backbone for further development of some of the most flourishing economies in the EM space – that is, if the banks are able to steer clear of the pitfalls: corruption scandals, market volatility, and a potential global trade overhaul.
Juan Jose Echavarria, the new Governor of Colombia’s Central Bank, has come into the job at a time of uncertainty for global markets. With inflationary pressures simmering, countered by the need to boost growth through tightening, Bonds & Loans asked the country’s top banker about the legacy he has inherited and how the Bank plans to navigate the challenging economic landscape ahead.
- Odebrecht Scandal Has Deeper Implications for 4G Funding Environment
- Sustainability Drive Sparks Green Bond Interest Across South, Central America
- Cutting Red Tape and Supporting Infrastructure Development in Peru
- LatAm Dollar Pipeline Swells but Local Currency Deal Outlook Uncertain
- Andean Markets: An Outlook for 2017
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