Dominican Republic leads bond issuers ahead of US data
More borrowers are set to follow the Dominican Republic and Brazil’s Samarco into the debt capital market amid a moment of stability
Latin American bond markets are set for a busy week, with
Dominican Republic and Brazilian miner Samarco kicking off
issuance on Monday.
||Driving forward: DomRep raises
cash for more infrastructure
The Dominican Republic
issued a $500 million bond, getting out ahead of Tuesday's
US jobs report. The placement of a new 2024 bond, rather than a
retap of its existing 2024 surprised some. Still, the sovereign
issuer raised much-needed funds to support infrastructure.
Brazil's Samarco Mineração did likewise,
raising $700 million in its second ever cross border sale.
Compatriot Omni came in for a $30 million RegS-only trade.
The US non-farm payrolls report Tuesday showed fewer jobs
added than expected. This is not encouraging for a US recovery
- which will stimulate demand for EM assets. But it could
further delay US officials' dial-down of monetary stimulus,
which would help bond issuers from LatAm in the short term.
Others are in line to follow Dominican Republic and Samarco,
making sure they get in before the year-end holiday period and
additional messages from the US Federal Reserve on scaling back
quantitative easing. US officials meet for the next monetary
policy decision October 30.
JBS had been
on the road through today meeting investors. A new bond
could help the Brazilian meatpacker streamline funding
following this year's
acquisition of Seara from Marfrig.
Banco Nacional de Costa Rica is
looking for $500 million, an Chile's Entel was due to
finish roadshowing what could be a
$1 billion 10-year.
Guatemala's Cementos Progreso
has started out on the road, ahead of what would be its
first-ever international bond, of perhaps $300 million.