Latin America

District of Bogata to Issue COP600mn in Bonds

Bogata’s District Ministry of Finance yesterday announced plans to issue COP600bn (approx. USD152mn) pesos in local bonds to counter the effects of the COVID-19 pandemic. The bonds are AAA rated and the transaction is being arranged by Itau.

7 May 2020

As Latin America Enters Crisis Mode, Ritch Mueller Expects More Market Stratification, Refinancing Opportunities

While crises tend to create new opportunities for the legal community, the current pandemic-induced downturn is creating unique challenges – economic, professional and logistical – for companies and law firms alike. But when the dust settles, some restructurings and M&A deals are likely to come through, and law firms will need to stay alert to their clients' needs to make the most of it, says…

1 May 2020

Costa Rica, Dominican Republic Given Emergency Lifeline by the IMF

The IMF has accelerated coronavirus-related disbursements of emergency funding to Latin America, with both Costa Rica and the Dominican Republic securing crucial financial assistance from the Fund.

30 Apr 2020

IMF Approves USD274mn Support Package to Paraguay

The IMF’s Executive Board has approved a USD274mn emergency support package for immediate disbursement to Paraguay in order to alleviate the economic shock caused by COVID-19.

23 Apr 2020

Vive Energia: ‘In Times of Crisis, All You Can Do is Push Ahead’

Vive Energia, a Renewable Energy Development Company and Consulting Firm, is going ahead with a number of wind and solar energy projects across Mexico, even as volatility engulfs global markets and liquidity drains out of EM assets. Jose Antonio Aguilar, Principal at Vive Energia, talks about pros and cons of project financing, the idiosyncratic challenges of the energy sector in Mexico and the…

17 Apr 2020

Argentina: as Default Looms, Currency Depreciation, Inflation Begin to Bite

As tough negotiations with creditors over the country’s USD70bn debt pile continue, a further decline in the peso and rising food prices are adding to the ever-growing list of issues facing the country’s population.

17 Apr 2020

Ecuador Shows Why Investors Should Engage in ‘Consensual’ Solutions to COVID Crisis - Ashmore

Ecuador, like many EM countries, has been shaken by a toxic cocktail of coronavirus, crashing oil prices and restricted access to financial markets. But according to Jan Dehn, Head of Research at Ashmore, Ecuador’s approach to dealing with the crisis – defined by pro-active engagement with creditors – is one others in the market should learn from.

17 Apr 2020

As Latin America Hunkers Down to Tackle Coronavirus, How Vulnerable is Brazil?

Latin American countries are hunkering down amidst an escalating pandemic, testing the resilience of businesses, banks, and investors, with many observers sharply focused on how one of the region’s largest economies – Brazil – will weather the storm.

16 Apr 2020

Additional Stimulus Measures Announced as Colombia Extends Nationwide Quarantine by Two Weeks

Despite the severe damage dealt to the fiscus from the global and local economic slowdown, a slower-than-expected spread of the virus in Colombia has provided much needed respite.

9 Apr 2020

Sovereigns, High-Grade Corporates to Drive Debt Capital Markets Revival in Latin America

Latin American markets have been among the hardest hit by the current global downturn even as many of these economies are only at the early stages of the coronavirus outbreak. But a stabilization in global equity and bond markets will prompt sovereigns and the stronger corporate credits to return.

9 Apr 2020

Central Bank of Brazil Prohibits Dividends, Pay Rises for Banks

The National Monetary Council (CMN) of the Central Bank of Brazil has temporarily prohibited pay rises for financial institutions in the country until September 2020. The ban is aimed at ensuring that funds are used to maintain credit and to absorb any future losses that may occur.

6 Apr 2020

The Top 10: Latin America’s Deals of the Year

Bookended by a volatile 2018 and an exceedingly turbulent 2020, last year was one of the busiest on record for Latin America’s credit markets, impressing not just by volume and number of transactions but also by their increasing complexity and inventiveness of the structures deployed, making the selections for the Latin America Deals of the Year Awards tougher than ever. Multi-jurisdictional…

1 Apr 2020

Loans in Brazil Creep Up as Lockdowns Force Companies to Tap into Credit Markets

Non-earmarked loans increased 1.4% month-on-month in Brazil, while earmarked loans dropped 2.6% in the same period, central bank figures show, with overall loan delinquencies stable at 3% in seasonally adjusted terms.

1 Apr 2020

Policy Measures to Soften the Blow for Latin America as Pandemic Enters New Phase - Scotiabank

So far, data on the spread of COVID19 in Latin America suggests the worst is yet to come, and the full economic impact on growth will be significant. But the measures already taken – and those being prepared – by governments in the region should soften the blow, a Scotiabank report suggests.

30 Mar 2020

Mexico Growth Outlook Sinks as Focus Shifts to Healthcare, Support for Most Vulnerable

The impact of the COVID-19 pandemic is expected to generate a significant GDP contraction, BBVA analysis indicates, as care and support for the most vulnerable should be given priority over immediate fiscal objectives.

25 Mar 2020

Latin America’s Governments Rush Through Stimulus Measures to Counter Pandemic Impact

Brazil, Argentina, Peru and Colombia have announced urgent fiscal stimulus measures to compliment monetary policy moves introduced over the past two weeks to sooth markets after a huge spike in volatility.

20 Mar 2020

ESG In Infrastructure: Building a Sustainable Future for Latin America

Sustainability is becoming a crucial consideration in the development of infrastructure across the globe, particularly in Latin America – which is facing one of the biggest infrastructure gaps in the emerging world while also remaining exceedingly vulnerable to the effects of climate change. The region’s top investors and developers explored the nexus of sustainable investing, project…

10 Mar 2020

As Oil Plummets, Pemex Seeks to Shore Up Finances with Braskem Idesa Contract Renegotiation

Mexico’s president, who famously scrapped the partially-completed New Mexico Airport project, is similarly intent on cancelling the oil giant’s contract, which he feels was signed under unfavourable terms. What that will mean for Pemex’s credit – and for the already souring investor sentiment around Mexico – is another question.

29 Feb 2020

CASE STUDY: Grupo Gondi Tags Rare 10-Year LCY Tranche on Term Loan and USPP for Bond Refinancing

Over 2x oversubscription on the upsized term loan and US private placement allowed Grupo Gondi to introduce a competitive dynamic between loan and PP demand, maximizing maturities and achieving the lowest price.

26 Feb 2020

Peru’s Current and Fiscal Account Deficits Narrowing Despite Softer GDP Growth – Itau

Weak domestic demand, due to low gross public investment, is a drag on GDP growth, according to the bank’s research.

25 Feb 2020