November 1, 2013
By Karen SchwartzA sharp price swing in the bond market since the US Federal Reserve began mulling the normalization of monetary policy is pushing Latin American firms to turn increasingly to bank loans for funding. The trend is likely to pick up in the remainder of the year, bankers say.
September and October were busy months for deals and several were sizable. Mexican state-owned oil company Pemex launched a $1.25 billion three-year revolver in early October, while Argentinian steel-maker Ternium advanced a five-year, $800 million term loan.
Transactions also increased in complexity: Colombian packaging maker Grupo Phoenix closed a five-year, $190 million multi-currency senior secured
Latin American borrowers are turning in increasing numbers to syndicated loans for funding, as the bond market becomes more expensive — and increasingly volatile