The companies América Móvil and JBS led regional debt issuances in 2021, according to a report by the Economic Commission for Latin America and the Caribbean (ECLAC).
In general, as in other years, corporate issuance came mainly from companies in Brazil and Mexico, which together accounted for almost 70% of total issuance in this sector in 2021.
América Móvil
Among the largest transactions, the following can be mentioned: the one carried out by the Mexican company América Móvil, for US$2.67 billion; two issues by the Brazilian company JBS, for US$2 billion and US$1.5 billion; one by MC Brazil Downstream Trading, for US$1.8 billion; two by Cementos Mexicanos (Cemex), for US$1.75 billion and US$1 billion; Braskem, in Mexico, and ISA Interchile, each for 1.2 billion dollars; MercadoLibre, in Argentina, for 1.1 billion dollars; and Vale, in local currency, for 8.49 billion reais.
On the other hand, sovereign issues fell 11% during 2021, reaching 57.968 billion dollars, although they still retain an important share of 39% of the total.
Credit agencies
Considering that international financial conditions remained stable, with sovereign risk levels showing no significant increases, the fall in sovereign issuance responds more to the fact that 2020 issuance represents a high base of comparison, in the context of the first year of the pandemic, which motivated many countries to seek funding for their aid programs.
Furthermore, 85% of sovereign issues correspond to those made by countries with investor-grade ratings, according to the ratings granted by the main credit agencies.
Finally, 35% of the total issued in 2021 by governments was oriented to finance green or social projects, a higher share than those recorded in 2020 (12%) and 2019 (6%).
Quasi-sovereign issuance, which accounted for 10 percent of total issuance, fell 41 percent in 2021 to $14.966 billion.
Finally, bank issues declined 31%, accounting for 6% of total issuance, while issues by supranational entities expanded 12% to US$5.541 billion, representing 4% of total issuance.
