Issuers rush to squeeze in bond deals
A pack of bond issuers led by Trinidad and Honduras stampeded into the market Wednesday, ahead of expected higher costs in 2014
This week might represent borrowers’ last
chance to sell bonds before investors break for the year
— at least, several LatAm credits treated it that way
||ALL LIT UP: AES Gener was one of
borrowers to tap the debt market Wednesday
Source: AES Gener
Issuers raised $2.25 billion in the cross-border market
Wednesday, ahead of worries that borrowing costs will rise in
2014. The deals also came as emerging market debt funds last
week registered their first inflows in months, providing
another bit of encouragement.
Honduras found conditions sufficient to
double its expected bond offering to $500 million and
Trinidad and Tobago increased its
first offering since 2007 to $550 million. Yet despite the
welcome for this pair, Bahamas appears to be waiting to issue
meeting investors this month.
Chile’s AES Gener brought out a
2073 non-call 5.5 year hybrid, to help with equity
contributions to generation projects. Santander Mexico is
roadshowing next week a $1 billion Basel III-compliant tier
two bond that will be the first of its kind in Latin
Among high-yield borrowers, Mexico’s Idesa made
international bond debut with a $300 million deal.
Speculative-grade regular Digicel opted to
add $500 million to its existing 2020 bonds. And ahead of
what is to be YPF’s second bond since last
year’s nationalization, Argentina’s
national oil company has
drummed up serious interest on the road this week.
Cross-border issuers have raised $120.36 billion this year
through Wednesday, according to Dealogic data. This is already
ahead of the $116.84 billion for the full-year 2012.
Wednesday’s biggest deal, however, came from a
domestic market. Fibra Uno
raised $654 million-equivalent in Mexico’s local
market. The deal was the first bond sale ever from one of
the country’s fibras — real estate funds
— as well as the largest sale from a non-government
borrower this year. It was joined in the local market by a
guaranteed sale from CFE.
Not to be outdone, Colombia’s Celsia
tapped the domestic market for $413 million-equivalent.