by Ben Miller
Enlarging the Menu
Asian buy-side participation in LatAm debt deals remains meager, but greater efforts are being made to cultivate accounts from Singapore to Tokyo.
Asia’s vast buy-side potential has really yet
to be exploited by Latin American issuers looking to diversify
their funding bases. This is slowly changing, however, as the
region becomes more than just an afterthought through greenshoe
options on dollar bonds, and after América Móvil
(AMX) ventured into the renminbi market this year to mark
LatAm’s first-ever renminbi-denominated Dim Sum
Yet, lack of familiarity with LatAm credits, an historic
distrust of the region and an inability to assess high-yield
credits means that Asian investors are only likely to welcome
but a handful of Latin names, despite having considerable sums
of money to put to work.
América Móvil’s 1 billion yuan
($160 million) bond sold in Hong Kong in February represented
LatAm’s entrance into a new market. The three-year
so-called Dim Sum bond could be the first of several for the
telecom, and other high-grade issuers...
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