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Bolivia

  • Fonplata, the South American supranational development bank, raised Sfr200m ($222m) of 5.5-year bonds in the Swiss franc market on Wednesday, increasing the size of the deal from an initially planned Sfr150m.
  • International investors have remained sanguine about the chances of a restructuring of Bolivia’s sovereign bonds even after the finance minister said the recently elected government was seeking payment relief on some external debt.
  • Bolivia’s dollar bonds traded lower for a second consecutive day on Tuesday as left-wing former finance minister Luis Arce looks set to assume the presidency. However, some argue that Arce is the best candidate for market stability, at least in the short term.
  • Bolivia will be forced to abandon plans to raise crucial funding in bond markets, the country’s public credit head has told GlobalCapital, after its Congress passed a bill that requires the government to seek approval from the legislative branch on the terms of the issue, amid a tense political climate.
  • Moody´s slashed Bolivia’s credit rating from Ba3 to B1 and placed its outlook on negative as it warned of a “material erosion” of the landlocked country’s fiscal and foreign exchange reserve buffers in recent years.
  • Standard & Poor’s on Monday became the third rating agency to react to political uncertainty in Bolivia, by putting its BB- rating on negative outlook. Yet its bond prices have begun to recover.
  • Bolivia-headquartered multilateral lender Fonplata sold its first ever bond on Monday, raising Sfr150m ($150m) of five year money from Swiss investors.
  • Expectations that a bond that already looked expensive will be become even more so helped Bolivia’s new 10 year trade well on the break after coming close to comps on Monday.
  • Latin America bond investors said that hopes of Bolivia’s new bonds receiving strong support from local buyers allowed the sovereign to print a new deal well inside better rated credits on Monday.
  • Bolivia’s budget for 2016 includes a $1bn bond issue to finance the construction of hospitals, finance minister Luis Arce said at a press conference in the capital, La Paz.
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