Mexico

Mexican state-owned oil company Pemex continued its mammoth issuance programme with a $5bn tap of outstanding 10 and 30 year bonds that it will use to buy back old notes maturing between 2018 and 2019.

Mexican microfinance lender Financiera Independencia (Findep) began fixed income investor meetings on Thursday as it looks to sell up to $250m of dollar-denominated bonds.

Bond investors showed they had no trouble taking on Mexican risk last week, and microfinance lender Financiera Independencia (Findep) could be the next borrower from the country to take advantage of friendly funding conditions.

Some syndicate bankers saw Banorte’s debut additional tier one (AT1) bond as tight to comps, but investors piled into the deal on Thursday claiming that the Mexican lender was offering greater value than Banco do Brasil’s bond with a similar structure.

Mexican conglomerate Grupo Kuo sold $450m of 10 year non-call five notes on Thursday in its first international bond sale in five years, as bankers praised the issuer for its timing.

Mexico’s third largest lender Banorte will price its first ever Basel III-compliant additional tier one capital bond on Thursday after releasing initial price thoughts on Wednesday.

Pampa Energía’s peso-linked bond plans and Banorte’s proposed perpetual paper are the picks of Latin America’s bond pipeline, as the region’s issuers ready another wave of corporate issuance, despite a weaker market.

DCM bankers say that Taiwan’s Formosa market could offer compelling funding options for several Latin American bankers after Mexican utility CFE became the first Lat Am corporate to issue in it this week.

LatAm DCM bankers say they are expecting Mexican issuers CFE and Banorte to issue soon on the back of rating agency reports published late on Tuesday.

As the Mexican peso hovers around its strongest level since before Donald Trump won the US election last November, Grupo Kuo has announced fixed income investor meetings as it looks to refinance existing debt.

Mexican oil giant Pemex has met bond investors in New York as it prepares a possible bond issue later in the week.

Mexico City-based DCM bankers say that the mood among the country’s financial community has drastically improved since the start of the year, as Unifin on Wednesday became just the fourth Mexican credit to issue dollar debt in 2017.