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Domestic bonds of Latin American issuers available on Cbonds website - Cbonds release

January 12, 2018 | Cbonds

        Dear Cbonds users! We are happy to announce that Cbonds expanded its coverage of Latin American markets (http://cbonds.com/bondsearch/). The website includes 4500 issues of domestic corporate and municipal bonds of Latin American countries, with the total volume equal to 273 billion USD.

 

Characteristics of the bond market

 

The main issuers in the domestic corporate bond market of Latin America are the financial companies (banks, leasing companies, financial holdings), among which Santander Leasing, Dibens Leasing, and Banco Davivienda are notable in terms of total volume of issues. The most popular currency of issues is the US dollar.

 

About half of the Latin American issues have a floating coupon rate. Basically, these securities are linked to the consumer price index, which is explained by macroeconomic uncertainty and high inflation in many countries of the region. Inflation-indexed bonds were most widely spread in Brazil and Colombia. Also, the Latin American market is issuing bonds denominated in an alternative, inflation-free currency (UVR, UYI and others). For example, the issue of Credifamilia Compania de Financiamiento Comercial for 155 million UVR (http://cbonds.com/emissions/issue/269671).

 

Financial market

 

In Latin America, there are about 40 exchanges of various types. The largest bond exchanges in Latin America are the BM&FBOVESPA, the Mexican Stock Exchange, and the Colombia Stock Exchange.

 

The development of Latin American financial markets takes place through the integration of exchanges. As an example, we can take an integrated Latin American market (MILA), which unites the exchanges of Mexico, Chile, Peru, and Colombia. This platform is designed to simplify the access of foreign investors to local markets and provide a wider choice of securities and issuers. In order to develop the national financial market and attract the largest number of companies, the main exchanges of Argentina are united under a common trading platform known as BYMA (Bolsas y Mercados Argentinos).

 

Economy



In 2017, economic activity in Latin America gradually began to recover after a long period of recession. The decline in commodity prices in 2010-2015 led to a reduction in the export revenues of the countries of the region, and as a result, to the weakening of national currencies and the growth of inflation. Today, Latin American countries are on the threshold of a new economic cycle, when the export of raw materials ceases to be the main driver of economic development. The compound growth rate of the region's GDP is estimated to be 1.2% in 2017 and 1.9% in 2018, according to experts.  Along with this, there is a decline in inflation to 4.2% and 3.5% in 2017 and 2018, respectively.

 

International rating agencies assigned non-investment credit ratings to most Latin American countries, which is caused by a drop in commodity prices and politically volatile environment. However, the gradual improvement of the economic situation helps raise the credit ratings of a series of countries. For example, over the past few years, Argentina's credit rating has been improved from Caa1/B-/RD to B2/B+/B. The highest credit ratings are assigned to countries such as Chile – Aa3/A+/A, Peru – A3/BBB+/BBB+, Mexico – A3/BBB+/BBB+ (Moody's / Standard & Poors / Fitch Ratings).

 

To ensure long-term growth of the region, it is necessary to adopt measures that facilitate the transition from a raw material export industry to a more competitive innovative economy based on the production of high-value-added products. The following factors are intended to ensure future economic growth: overcoming political crises in a series of countries, reducing social inequalities, fighting corruption, seeking new trading partners, and promoting financial integration.  



Coverage of the Latin American market of domestic corporate and municipal bonds in the Cbonds database



Country Amount of issues of domestic corporate and municipal bonds in circulation Market size, USD mln Principal financial centre Representative issue Current coupon, %
Argentina 387 13413.9 Buenos Aires Stock Exchange YPF, FRN 24sep2019, ARS (35) 23.4805
Bolivia 259 3099.3 Bolivian Stock Exchange Toyosa, 4.9% 27oct2022, BOB (D) 4.9
Brazil 1226 160023.8 BM&FBOVESPA CCR Metro Bahia, FRN 5may2020, BRL (004) 5.58139
Dominican Republic 250 2779.8 Dominican Republic Stock Exchange Empresa Generadora de Electricidad Haina (Ege Haina), 11.50% 21jul2026, DOP (06) 11.5
Colombia 342 39203.9 Colombia Stock Exchange Banco Popular (Colombia), 7.34% 14feb2020, COP (B3) 7.34
Costa Rica 288 12909.5 National Stock Exchange of Costa Rica Banco Davivienda (Costa Rica), 6.1% 23feb2018, CRC (E 6) 6.1
Panama 579 7919.8 Panama Stock Exchange Aliado Leasing, 8.5% 27nov2022, USD (N) 8.5
Paraguay 417 6949.9 Paraguay Stock Exchange Banco Continental Paraguay, 6.5% 30apr2027, USD (4) 6.5
Peru 300 9576.1 Lima Stock Exchange A Jaime Rojas Representaciones Generales, 5.9687% 16jul2019, USD (D) 5.9687
Trinidad and Tobago 22 1215.5 Trinidad and Tobago Stock Exchange Trinidad and Tobago Housing Development Corporation (HDC), 8.5% 10oct2021, TTD (T3) 8.5
Uruguay 35 562.8 Montevideo Stock Exchange HRU, 4.17% 30nov2018, USD (4a) 4.17
Ecuador 295 1355.9 Guayaquil Stock Exchange Alimentsa, 8.5% 13mar2019, USD 8.5
Jamaica 14 124.5 Jamaica Stock Exchange X Fund Properties, 7% 28feb2018, USD (A) 7
Others 63 13464.3 - Barbados National Oil Company (BNOCL), 6.75% 31dec2019, BBD (4) 6.75



Traditionally, for all issues, the following features are available: bonds calculator, main placement parameters, payment schedules, issue-related documents. Daily bonds quotes are also available.



Please note that access to the website (http://cbonds.com/) is included in the Cbonds-Premium tariff. If you don’t have access to Global.Cbonds yet, you can try it out and appreciate the advantages of the website by applying for a trial access at (http://cbonds.com/about/paccess.php). The information is available in 5 languages: Russian, English, Italian, German and Spanish.


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150 000
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