Central America

Mexico’s largest airline, Aeromexico, achieved significant price tightening on a five year issue as Lat Am bond buyers said the rare luxury of a 7% handle in primary had piqued their interest, despite acknowledging credit challenges.

Latin American bond markets reached record levels of January issuance this week as primary activity ticked over despite the scare about the coronavirus, which the World Health Organisation declared a global emergency on Thursday.

Mexican non-bank lender AlphaCredit became the latest company from Latin America to schedule fixed income investor meetings as bankers say smaller, high yield issuers are likely to dominate forthcoming supply.

Mexican state-owned oil company Pemex will prepay just $62m of two bonds maturing later this year after receiving a tepid response to its tender offer.

Mexico’s largest airline Aeromexico will begin meeting fixed income investors on Monday as it plots what would be its first ever international bond issue.

After Mexican state oil company Pemex paid very little to issue a 40 year bond, rather than a 30 year, on Tuesday, two days later, the Dominican Republic opted for the same rare maturity.

Debt capital markets bankers said that the pricing Mexican state oil company Pemex achieved on a rare 40 year tranche was one of the highlights of a busy Tuesday in Latin American primary markets.

Mexican bottling company Coca-Cola Femsa has defined the buy-back price of its 2023 senior unsecured bonds as it looks to mop up some outstanding debt.

Latin America bankers said that this week Mexico showed again that it was a leading issuer in the region after the sovereign sold its second deal of the year to take advantage of remarkable funding conditions.

Fomento Económico Mexicano (Femsa), the Mexican conglomerate, sold $1.5bn of 30 year bonds on Tuesday more than three months after completing a roadshow as DCM bankers said that the decision not to bow to investor demands last year had paid off.

Remarkable funding conditions drove Mexico to the euro market on Tuesday just a week after it issued in dollars as a bulging order book again suggested that investor fears over the government’s management of the economy have subsided.

Mexico’s head of public credit told GlobalCapital that he felt the government’s economic management was winning over investors after the sovereign notched a heavily oversubscribed dollar deal last week.