Mexico

Latin America’s most frequent sovereign borrower scored two record yields on Monday as technical factors continue to govern investors' behaviour.

TriOptima and the Chicago Mercantile Exchange have completed the first triReduce multilateral compression cycle for cleared Mexican peso interest rate swaps, in what they said was also the first compression in a cleared Latin American currency.

A welcome trio of non-Argentine corporate issuers provided variety to the Latin American new issue market this week, with all three achieving the rare distinction of being praised by DCM bankers both for their timing and for not pushing investors too hard on pricing.

Bancomext, the Mexican government development bank run by the country’s former public debt chief, Alejandro Díaz de León, will ready a subordinated bond issuance on Wednesday with investor meetings in five cities.

Chilean state-owned oil company Empresa Nacional de Petróleo (Enap) will look to tap the bond markets next week to fund a buyback of existing debt as Latin American companies continue to turn to tender offers just as often as the new issue market.

Citigroup has issued on Thursday an unusual €374m bond, exchangeable into shares of Telekom Austria, as part of a deal that enabled América Móvil to reduce its stake in the company, fulfilling an earlier promise, without suffering a big fall in the share price.

Financiera Independencia (Findep), the Mexican microfinance lender, has given bondholders an extra two weeks to earn the early bird fee on its tender offer despite receiving a strong initial response.

Two high yield companies reminded bond markets that there’s life in Latin America outside of Argentina by selling dollar deals linked to liability management exercises this week.

Mexican state-owned oil company Pemex was expected to raise ¥80bn ($759m) of 10 year Samurai bonds on Friday morning Japan time in its first yen deal since 2008.

Mexican state owned oil company Pemex is expecting to price a 10 year Samurai bond on Friday morning Japan-time in what would be its first yen-denominated deal since 2008.

Mexican microfinance lender Crédito Real has hired three banks to manage an investor roadshow and tender offer as it looks to push out debt maturities.

The UK’s vote to leave the European Union on Thursday put paid to at least two bond announcements in Latin America but traders said the reaction in secondary markets was nowhere near as brutal as expected.