Brazil

Santander has looked internally to replace its departing head of Latin American debt capital markets, GlobalCapital understands.

Syndicate bankers often joke that Brazil issuing is a sign that it’s time to sell Latin American bonds, and a sell-off indeed began this week just as the sovereign was pricing its latest deal. But market jitters should not distract from an improving picture in the country.

The Brazilian sovereign pounced on the best of this week’s issuance conditions but then saw its bonds widen alongside a broader sell-off in markets later in the week — though this did not deter two companies from the country from issuing.

Meatpacker Marfrig sold $750m of seven year non-call three bonds on Wednesday as Brazilian issuers take centre stage in Latin American primary markets after a great run in secondary.

Latin America’s largest sovereign Brazil raised $1bn in international bond markets on Tuesday, earning praise for its timing despite taking the unusual path of pricing at the wide end of guidance.

Latin American new issue markets enjoyed a quiet week with as carnival celebrations replaced the debt party with which the region started the year, but Brazilian issuers look ready for a swift return to market mode.

S&P’s upgrade of Brazilian oil giant Petrobras could attract more investors into the company’s curve, according to Lat Am market participants.

Brazilian oil giant Petrobras has wrapped up a tender offer that ended up far larger than planned, after bondholders owning $5.57bn of paper agreed to sell their notes.

Lat Am bond bankers said that Brazilian mining giant Vale had found the perfect window to tap its dollar bonds due 2026 on Monday — some four months after it had mandated banks for the trade.

Brazilian mining giant Vale took advantage of a huge recovery in iron ore prices since Donald Trump won the US presidential election to tap its 2026s some 105bp inside where it first issued the bonds in August.

Brazilian railway operator Rumo wrapped up another busy day for Latin American new issues on Thursday with a $750m seven year non-call four deal that came well inside initial price thoughts.

Brazilian railway operator Rumo is likely to issue on Thursday after announcing a new seven year non-call four bond, according to syndicate bankers on the deal.