The unique A/B private placement structure was a rarity in the capital markets in light of its inclusion of both senior and subordinated tranches. It’s also the third green project bond issued out of Latin America.
As Mexico continues to show resilience in the face of multiple external challenges, including stalemate in the NAFTA negotiations, pressure on the EM currencies from a rallying dollar and global trade wars, its debt capital markets have largely switched into a wait-and-see mode. But issuance windows offer plenty of opportunities, so we speak to Juan Pablo Newman, the Head of Public Credit at the Ministry of Finance, about DCM prospects and a broader outlook for the country’s issuers and borrowers.
The first half of 2018 has seen a wobble in the multiyear emerging market rally, with local currencies feeling the heat and capital inflows dropping in recent months amid rising US interest rates, a strong dollar and global geopolitical and trade tensions. As weaker economies begin to feel the pain, EM monetary policies come out of sync – and as ever, central banks are facing some tough decisions.
The desired renovation in politics is not for now. Partly because the electoral rules act to reinforce the competitiveness of the big parties and politicians now in office. A trajectory like that of Macron in France would face many difficulties in Brazil.
Although the pause in the cuts has come ahead of expectations, the basic interest rate hit an unprecedented level and, this time, it is here to stay. Even if some part of the monetary loosening is temporary, likely to revert when inflation is converging to its goal, there is a good chance of the Selic rate not coming back up to two digits. A key condition for that is the approval of Social Security reform that fends off the risks of public debt insolvency.
With consumer confidence once again on the rise in Brazil, Daniel Levy, CFO of Arezzo & Co. is optimistic about the company’s fortunes as the shoemaker looks to expand its footprint both within the country and abroad. We speak with Levy about the funding team’s core objectives and the company’s expansion efforts.
A testament to solid investor relations, good governance and transparency, Albanesi was able to attract traditional portfolio managers to its latest dual-tranche A/B loan syndication, a rare project finance deal in the country’s power sector.
Brazil is still a teenager when it comes to the functioning of democratic institutions: a country that seeks a path to civility, but not without stumbling first.
- Nexa Resources CFO: “Brazilian economy has been a positive story, though it’s not homogenous”
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- Promigas CFO Aquiles Mercado González on Promioriente, Brilla and Expansion
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14 Nov 2018