It looks like a “Brady-style restructuring,”
said one trader referring to the par and
DISCOUNTûBONDSûISSUEDûBYû,ATINû!MERICANû
sovereigns in the late 1980s and 1990s to
restructure defaulted loans.
The government’s decision to suspend
payments to external creditors in June
surprised dollar bondholders who thought
they would be exempt from any
restructuring.
Bondholders have hired Newstate
Partners as advisors after forming a
committee that comprises the largest
institutional holders of the country’s dollar
debt.
Barbados has hired White Oak Advisory as
ITSûlNANCIALûADVISOR
The government is making a preliminary
forecast of 3.5% GDP growth for this year
and 3.3% for 2019, while also predicting a
primary surplus of 6% of GDP next year, up
from 3.2% this year.
&ORECASTSûFORûMEDIUMûTERMûlNANCINGûGAPSû
will be released once the island nation and
the International Monetary Fund reach an
agreement and the size of multilateral
FUNDINGûISûCONlRMED ûITûSAID
After discarding certain claims, the
government has also adjusted its debt levels
down to around 16.1bn Bajan dollars
(US$8bn) or around 155% of 2018 GDP, as of
the end of March.
“The government wishes to commence a
dialogue with its creditors over the types of
terms that will be required to eliminate the
lNANCINGûGAPSûTHATûAREûLIKELYûTOûREMAINûEVENû
AFTERûTHEûPLANNEDûlSCALûCORRECTIONvûANDû)-&û
support, it said.REGIONAL
LATAM ISSUERS FACE SURGE IN
MATURITIES FROM 2019,ATINû!MERICANûCORPORATESûFACEûAûSURGEûINû
bond maturities next year, even after a bout
OFûRElNANCINGSûAHEADûOFûELECTIONSûINû û
Fitch said last week.
Corporates from the region will face
US$16.3bn in bond amortisations next year,
US$26.6bn in 2020, US$34bn in 2022,
US$31.7bn in 2023, and US$45.7bn in 2024.
Of the US$302bn in amortisations between
2019 and 2030, 56% come from investment-
grade companies. And most of that is
concentrated in Mexico (37%) and Brazil (32%),
MOSTLYûFROMûOILûlRMSû0ETROBRASûANDû0EMEX
A good chunk of the maturities next year
come from a handful of names, including
PEMEX (US$6.8bn), AMERICA MOVIL (US$2.9bn)
and ECOPETROL (US$1.5bn). Pemex has already
MADEûSIGNIlCANTûHEADWAYûAFTERûISSUINGû
US$9.5bn of bonds this year.Fitch expects most issuers to continue to
RElNANCEûDEBTûMATURITIESûINûADVANCE ûASûFEWû
have the means to pay down impending
amortisations.
But some lower rated names may have
DIFlCULTYûDOINGûTHISûATûAûTIMEûOFûPOLITICALûANDû
macroeconomic volatility.
The rating agency highlighted Brazilian
STEELûlRMûCSN (B-), which issued US$350m of
bonds in February, short of the targeted
US$750m. It has US$550m falling due in
2019 and US$1bn in 2020.ALL INTL EMERGING MARKETS BONDS
BOOKRUNNERS: 1/1/2018 TO DATE
Latin America
Managing No of Total Share
bank or group issues US$(m) (%)
1 Citigroup 31 10,831.65 16.8
2 JP Morgan 25 7,631.90 11.8
3 HSBC 13 6,356.13 9.8
4 Deutsche Bank 6 5,832.61 9.0
5 BAML 17 4,327.70 6.7
6 Morgan Stanley 9 4,009.35 6.2
7 BBVA 4 2,811.40 4.4
8 BNP Paribas 8 2,741.03 4.2
9 Santander Global 13 2,653.79 4.1
10 Itau Unibanco 13 2,254.02 3.5
Total 67 64,614.75
Excluding equity-related debt.
Source: Thomson Reuters SDC code: L3Are your colleagues as
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