Latam Capital Markets: Bond market turns to plan B

As the region’s stock markets tumble and the international bond market shows no sign of opening, Latin American companies in need of cash are turning to plan B. "The loan market is still open in Brazil. There is also securitization. At the moment there is a plan B beyond the international bond market that will work for many Latin companies, especially for those in Brazil," Dan Vallimarescu, head of debt capital markets at Santander, told Euromoney just days after Lehman Brothers’ collapse. "Several issuers are getting a bank deal done quietly," says Chris Gilfond, joint head of Latin American debt at Citi. "People are also staying local and/or regional. For example, in Mexico and Peru the local debt capital markets business has been doing very well."

Issuers and coupons in 2008
Pricing date Value $mln Issuer parent Deal nationality Coupon
8 Jan 750 Petrobras Brazil 5.90
11 Jan 400 Usiminas Brazil 7.00
2 Apr 650 AES Venezuela 8.50
7 Apr 200 Odebrecht Brazil 7.50
11 Apr 150 Vicunha Brazil 6.75
5 May 100 Cencosud Chile 7.187
6 May 500 SAB Mexico 6.00
8 May 300 Independencia Alimentos Brazil 9.87
8 May 500 Metalurgica Gerdau Brazil 7.25
21 May 250 Diagnosticos da America Brazil 8.75
28 May 1,500 Pemex Mexico 5.75
28 May 1,500 Pemex Mexico 6.62
29 May 500 Odebrecht Brazil 7.25
30 May 150 Vicunha Brazil 7.00
13 Jun 150 Arantes Alimentos Brazil 10.00
18 Jun 144 Comanche Clean Energy Brazil 12.50
23 Jun 75 Lupatech Brazil 9.875
Source: Dealogic

As the region’s stock markets tumble and the international bond market shows no sign of opening, Latin American companies in need of cash are turning to plan B. “The loan market is still open in Brazil. There is also securitization. At the moment there is a plan B beyond the international bond market that will work for many Latin companies, especially for those in Brazil,” Dan Vallimarescu, head of debt capital markets at Santander, told Euromoney just days after Lehman Brothers’ collapse.

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