LATAM WRAP-LatAm bankers hope for issuance surge in slow Sept

lunes 17 de agosto de 2015 12:36 GYT

By Paul Kilby

NEW YORK, Aug 17 (IFR) - LatAm bankers are gearing up for what could be one of the slowest Septembers in recent years, but still hope there will be a brief surge of issuance before any US rates hike next month.

It has been a dismal year for primary issuance in Latin America, with cross-border bond supply hitting just US$55.4bn so far this year, according to Thomson Reuters data.

That is well less than half of the US$139bn seen in all of 2014 - which was a record year for the region - and even off the 2013 pace of US$121bn.

"Our pipeline is thinner than it has been running over the past three years," said one banker.

In the context of the last 10 years, however, the US$55.4bn number looks comparatively healthy.

From 2005 to 2007, before the global financial crisis hit, annual LatAm issuance averaged just around US$45bn.

Still, sluggish growth in Latin America following this year's commodities rout has taken its toll on issuance, diminishing funding needs for the region overall.

In Brazil's case, this has been exacerbated by rising political risks from the corruption scandal at state-owned Petrobras, which has added an extra layer of complexity for borrowers already put off by higher funding costs.   Continuación...