The first half of 2018 has seen a record-breaking volume of corporate consolidation across the globe, and Latin America has become a prominent setting for such activity. The latest slowdown in M&A activity is thought to be stemming from the peak of elections-related volatility, from Mexico to Brazil, and most expect business to continue as usual once the dust settles.
Latin American economies are facing a range of complex challenges, both internal and external, as they power through the current election super-cycle – arguably the most significant in the region’s history. Bonds & Loans spoke to a number of Latin America-focussed debt capital markets bankers, rating agencies and law firms in the Americas to get a sense of the major themes and concerns that will dominate the agenda in coming months.
Bonds & Loans team spent some time on the ground in Colombia to meet with a broad range of local finance leaders in order to get a sense of the risks and opportunities on the horizon in the Andean country.
We speak with Edward Uribe, CFO, at Grupo Alumina about how US trade policy is affecting the company’s funding outlook and the prospects for the metals and construction sectors.
Bonds & Loans speaks with Aquiles Mercado González, Chief Financial Officer at Promigas, on its distribution subsidiary’s hugely successful local market bond transaction, new opportunities for growth, and the company’s innovative non-bank financing programme.
The issuers, borrowers and mediators of the most innovative and outstanding debt capital market deals on the continent to be lauded at the prestigious awards ceremony. Winners: Latin America Deals of the Year Awards 2018
If volumes are anything to go by, 2017 was a watershed year for green bonds, with the market seeing more than USD130bn of these securities issued globally. Emerging markets saw their fair share of firsts, including Latin America’s first sustainability bond, and the first green bond in Africa, while China continued to dominate the supply pipeline
CAF tapped the international markets – Argentina raised interest rates by 100bp – Banorte and Interacciones to merge – Colombia pre-paid a bond – Brazil cuts rates – Banco Hipotecario issued a ARS6.3bn bond – Colombia’s stable outlook affirmed – Televisa’s head to step down – Venezuela to restructure USD60bn worth of debt
Nafin to return to the yen market – CFE issued a triple-tranche bond in the local market –Petrobras gets upgraded – Gerdau sold USD650mn in fresh debt – Argentina raises rates – Consumer prices to fall in Peru – The IMF might bail out Venezuela – PDVSA´s assets continue to rally – Guatemala gets downgraded – Bancolombia issued a ten-year bond
China has over the years moved to strengthen its ties to Latin America in a range of areas, and a recently proposed free trade agreement between the Asian powerhouse and Mexico could take that one step further – potentially opening up a vast new trade and capital corridor between the two regions.
- Latin America Credit Markets Brief: 14 September – 28 September
- Latin America Credit Markets Brief: 31 August – 14 September
- Industrial Action Threatens Reforms, Economic Performance Across Latin America
- Latin America Credit Markets Brief: 17 August – 30 August
- Latin America Credit Markets Brief: 20 July – 2 August
11 Dec 2018