Mexico City Airport prices $4 billion deal; Latin America’s new issue volume up this year

By Rebecca Melvin

New York, Sept. 13 – Strong new-deal flow continued in emerging markets on Wednesday. Mexico City Airport priced $4 billion of senior secured green notes, with $1 billion in a 10-year tranche and $3 billion in a 30-year tranche.

The new deal was twice as large as the same issuer’s two tranches priced last year at this time as part of the same borrowing plan, which is now complete.

Also among deals priced on Wednesday were Korea Development Bank’s $1 billion of fixed- and floating-rate tranches and a €225 million tap of CEZ Group’s 4% notes due 2028.

Looking ahead, the Kingdom of Bahrain’s three tranches of dollar-denominated debt is expected to total around $3 billion when final terms emerge. The deal includes a Sukuk of up to $850 million and two conventional tranches of 12 years and 30 years. There was also news that Russia plans to issue new dollar notes and tap two existing dollar note issues to fund tender offers.

Deal flow also included on Tuesday an upsized $400 million of notes from Banistmo SA, $600 million of notes from Coca-Cola Icecek AS and a $500 million benchmark from Brazil’s Klabin SA.

Typically new issuance improves in September, but this month has been even better than usual, sources said. Latin America emerging market debt year to date is running 4% to 5% ahead of the same period las year.

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