Last year, Grupo Bimbo’s debut hybrid transaction marked a milestone not just for the company but the broader Mexican corporate bond market, where primary market activity for hybrid securities has traditionally been dominated by select financial sector issuers.
Americas Market Intelligence’s John Price takes stock of last year’s hectic election cycle in Latin America and looks more closely at the fortunes of some of the region’s key markets: Brazil, Mexico and Venezuela.
One of the biggest M&A deals in recent emerging market history, the Suzano-Fibria merger, saw a correspondingly complex and impressive financing scheme that involved a USD9bn syndication, split between a bridge loan and pre-export financing, which culminated in a billion-dollar bond issuance. The acquisition allowed to create a pulp giant with a 17% share of the global market.
The recent explosion at an oil pipeline in Tlahuelilpan, Central-Eastern Mexico, took the lives of 114 people and dozens more were left with severe injuries. The blast brought Mexico’s ailing oil and gas infrastructure back into focus just as the new president sets on a path to revitalise the industry by undoing some of his predecessor’s reforms to liberalise it. But will he succeed?
EM FX ended last week on a firm note, fueled by news that the US shutdown was ending (at least temporarily). This week brings some potential for more positive headlines regarding Brexit, US-China trade talks, and Fed policy. Yet all three could pose negative risks too. We believe the US rates markets still need to normalize before the dollar can get significant traction.
As the new administration begins to enact its economic vision, Zeina Latif warns the Bolsonaro-appointed finance minister Paulo Guedes that a half-measure approach could undermine the fiscal rebalancing of Brazil.
The funding for the project, Lundin Gold’s sole venture in the country and its key source of revenue there, featured a one-of-a-kind structural solution that required extensive collaboration and negotiation between the financing parties and the sponsor.
For many in Brazil, the appointment of Sérgio Moro to the Ministry of Justice was a great move – particularly from a political standpoint. The judicial class, however, seems to be more critical. As ever, reality is likely to be found somewhere in between.
In an exclusive interview with Bonds & Loans, Joe Delvaux, Senior Fund Manager at Duet Asset Management, delves into frontier markets, assessing their performance in 2018, providing insight into investor sentiment on broader EM assets, and takes a glimpse into what 2019 might bring.
Latin America’s CFOs, Treasurers respond to rising uncertainty by shifting back to loan markets, prioritise liability management.
- Brazil SWOT Analysis: Cautious Optimism
- ING: A Global Perspective on Latin America’s Commodity and Infrastructure Markets
- BlackRock Sees Benefits of NAFTA 2.0 and Government Support for Mexican Infrastructure
- Ecuador: Past Borrowing Limits Future Financing Options
- Top Dealmaker: Natixis’ Helena Radzyminski on Latin America’s Loan Markets