LatAm borrowers seen coming in before Fed

jueves 2 de junio de 2016 13:40 GYT

By Paul Kilby

NEW YORK, June 2 (IFR) - A number of LatAm issuers are expected to push ahead with bond offerings next week as they seek to benefit from benign conditions ahead of the Fed meeting and the UK's EU referendum.

The steadily growing pipeline now includes Brazilian pulp company Eldorado, Argentine pay TV and internet service provider Cablevision and Mexican REIT Fibra Uno.

All are expected to price next week, while market participants say more borrowers should be making an appearance in the coming days.

One syndicate manager said his bank may announce deals next week for three issuers looking to raise a total of US$2.5bn before the June 14-15 FOMC meeting.

"Guys are definitely keeping an eye on the FOMC, and anyone who can do a deal ahead of that will definitely do so," said another New York-based syndicate manager.

Argentina's Province of Cordoba meanwhile is moving ahead of the pack, looking to price a five-year bond on Friday despite the potential risk from the morning's nonfarm payrolls print.

The LatAm market is keeping a close watch on other developments as well, including Federal Reserve Chairman Janet Yellen's speech on Monday in Philadelphia and her testimony before Congress on June 21-22.

Futures have been lowering the chance of a US rate hike in June, but strong economic data could still change plans.   Continuación...