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First-Time International Bond Issuance—New Opportunities and Emerging Risks

Author

Listed:
  • Ms. Anastasia Guscina
  • Mr. Guilherme Pedras
  • Gabriel Presciuttini

Abstract

International bond issuance by debut issuers has risen in recent years. The uptick was a result of both demand and supply factors. The search for yield and demand for portfolio diversification have resulted in demand-driven easy financing conditions. At the same time, rising financing needs for many debut issuers, coupled with reduced access to concessional financing, relatively undeveloped domestic markets, and a favorable interest rate environment have made international bonds an attractive financing alternative for many countries. As bonds issued in the international markets are typically denominated in hard currencies, have large volumes and a bullet structure, exposure to exchange rate and refinancing risk has increased. Therefore, risk-mitigating policy actions are needed to prepare for redemption, support debt sustainability, and secure adequate debt management capacity.

Suggested Citation

  • Ms. Anastasia Guscina & Mr. Guilherme Pedras & Gabriel Presciuttini, 2014. "First-Time International Bond Issuance—New Opportunities and Emerging Risks," IMF Working Papers 2014/127, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2014/127
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    References listed on IDEAS

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    Cited by:

    1. Weneyam Hippolyte Balima & Jean-Louis Combes & Alexandru Minea, 2016. "Bond Markets Initiation and Tax Revenue Mobilization in Developing Countries," Southern Economic Journal, Southern Economic Association, vol. 83(2), pages 550-572, October.
    2. repec:nam:befdwp:3 is not listed on IDEAS
    3. Mr. Andrea F Presbitero & Mr. Dhaneshwar Ghura & Mr. Olumuyiwa S Adedeji & Lamin Njie, 2015. "International Sovereign Bonds by Emerging Markets and Developing Economies: Drivers of Issuance and Spreads," IMF Working Papers 2015/275, International Monetary Fund.
    4. Matteo Accornero & Paolo Finaldi Russo & Giovanni Guazzarotti & Valentina Nigro, 2015. "First-time corporate bond issuers in Italy," Questioni di Economia e Finanza (Occasional Papers) 269, Bank of Italy, Economic Research and International Relations Area.
    5. Aleksandr V. Gevorkyan, 2019. "Exchange market pressure and primary commodity – exporting emerging markets," Applied Economics, Taylor & Francis Journals, vol. 51(22), pages 2390-2412, May.
    6. repec:wly:soecon:v:83:2:y:2016:p:550-572 is not listed on IDEAS
    7. Nordine Abidi & Ms. Burcu Hacibedel & Ms. Mwanza Nkusu, 2016. "Changing Times for Frontier Markets: A Perspective from Portfolio Investment Flows and Financial Integration," IMF Working Papers 2016/177, International Monetary Fund.
    8. Chen, Shiu-Sheng & Huang, Shiangtsz & Lin, Tzu-Yu, 2022. "How do oil prices affect emerging market sovereign bond spreads?," Journal of International Money and Finance, Elsevier, vol. 128(C).
    9. Renzo Rossini & Zenon Quispe, 2015. "Evolution of bank and non-bank corporate funding in Peru," BIS Papers chapters, in: Bank for International Settlements (ed.), What do new forms of finance mean for EM central banks?, volume 83, pages 273-292, Bank for International Settlements.

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