In the first quarter of 2021, total Latin American and Caribbean (LAC) bond issuance in international markets reached US$ 52 billion, the region’s highest-ever quarterly issuance recorded. The total in the first quarter of 2021 was 89% higher than in the final quarter of 2020, 16% higher than in the first quarter of 2020, and 10% higher than in the first quarter of 2018, the previous peak.

Many issuers covered their refinancing needs early in the quarter, on the expectation of rising interest rates. Issuance in the month of January represented 59% of the quarterly total and was the region’s third highest monthly issuance on record. In February and March, with U.S. Treasury yields increasing steadily, there was a slowdown in bond issuances.

In April, as U.S. Treasury yields showed signs of stabilization, infrequent and first-time corporate issuers from the region came to the international bond market to refinance debt. First-time issuers included Guatemala’s CMI Energía - Investment Energy Resources Ltd, ATP (Andean Telecom Partners) Tower, and Brazil’s Iochpe-Maxion S.A., an automobile components manufacturer.

Adding April, regional bond issuance in international markets reached US$ 65.5 billion in the first four months of 2021. Corporate issuers accounted for 54% of the total issuance and sovereign issuers for 46%. The share of investment grade issuers was 65%.

The top three issuers, corporate and sovereign combined, were Mexico (28%), Brazil (19%) and Chile (12.5%), which together accounted for 60% of the total regional issuance from January to April. The three top sovereign issuers were Mexico, Colombia and Chile, followed closely by Peru. Together, the four sovereigns accounted for 81% of total sovereign issuance in the period.

Green, social and sustainability bond issuance (GSS) reached a new record high of US$ 16.6 billion at the end of April, a 23% share of the total amount issued in the first four months of the year. This share was more than two times the 2020 share of 9.3% and more than five times the 4.3% average of the 2015-2020 period.