Transelec keeps bond pipeline open
A deal from Transelec has shown the cross-border bond market remains open for investment-grade credits. Mexico and Bermuda are set to keep the pipeline going.
The opening in the DCM that started
earlier this month is widening somewhat, with corporates now
coming through, and more transactions on the way.
sold its first dollar-denominated bond in 12 years Tuesday.
The electric transmission operator sold $300 million in 2023
bonds, upsizing from an expected $250 million. The deal follows
América Móvil and
Banco do Brasil in opening the markets for corporate
Government-guaranteed sales have also
provided access to funds, particularly from US high-grade
Aeroméxico sold $117 million in bonds guaranteed by
the US Ex-Im bank, to fund an aircraft purchase.
Meanwhile, sovereigns are getting into the
act as well, with
Mexico expected to price Yen-denominated bonds as soon as next
week, in what has become a regular visit to the so-called
"This transaction has various objectives.
One is a [regular] presence in the Japanese market and second
to issue at more attractive levels in the 3 and 5-year space,"
Mexico's public credit head Alejandro Díaz de
on the road this week ahead of a dollar bond sale. If
conditions are to its liking, the sovereign should sell a new
bond next week. The island's government is raising funds to
head off a fiscal deficit expected to be 6% of GDP.
It still remains to test access for
high-yield issuers, who have not sold a non-Ex Im-guaranteed
cross-border bond since May . With the August vacation period
approaching, market watchers don't expect any more until