(Bloomberg) -- Latin American borrowers are lining up to tap global bond markets in what’s shaping up to be the region’s busiest day for hard-currency debt issuance this year.
The Uruguayan government, Brazil’s state-controlled oil producer Petroleo Brasileiro SA and lenders BBVA Mexico SA and Banco de Credito Del Peru are selling dollar notes in transactions expected to price Tuesday, according to people familiar with the matter, who asked not to be identified because they’re not authorized to speak about it.
The surge comes amid a broad pickup in bond sales as bankers return from the Labor Day holiday and as traders await a batch of US economic data due later this week. In the US alone, a record 29 high-grade issuers are looking to sell new bonds on Tuesday, according to an informal survey of debt underwriters.
It’s “the classic post-Labor Day book openings,” said Sergey Goncharov, a money manager at Vontobel Asset Management Inc. “Issuers need or want to issue at some point and this mark ends the two-month period of summer lull.”
In addition to Tuesday’s deals, Corp Andina de Fomento’s debt issuance is set to price Wednesday, while lithium company Sociedad Quimica y Minera de Chile also said it intends to sell new notes.
Borrowing costs for the developing world have been falling as the Federal Reserve is set to embark on its monetary easing cycle later this month. Elsewhere in emerging markets, Indonesia is selling about 750 million euros ($828 million) in notes maturing in 2032.
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