Dominican Republic leads bond issuers ahead of US data

Dominican Republic leads bond issuers ahead of US data

Dominican Republic Bonds

  Driving forward: DomRep raises
cash for more infrastructure
Latin American bond markets are set for a busy week, with Dominican Republic and Brazilian miner Samarco kicking off issuance on Monday.

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. LF