Brazil

Brazilian meatpacker Marfrig increased the size of a new bond by 50% and still saw it trade two points above reoffer the day after pricing this week as Lat Am syndicate bankers said they were lining up more corporate issuance from beleaguered Brazil.

Meatpacker Marfrig increased the size of the its new seven year non-call three bond from $500m to $750m to send a message that, in the case of certain issuers at least, Brazil is back.

Derivatives traders this week took the resignation of Brazilian planning minister Romero Juca in their stride, leaving key measures of risk largely unchanged.

Meatpacker Marfrig announced initial price thoughts low to mid 8% area for a new seven year non-call three bond expected to be priced on Wednesday, with S&P so impressed by the company’s capital market activity that it assigned a positive outlook to the rating.

Meatpacker Marfrig will meet investors this week as it looks to show that the poor secondary market performance of Petrobras’ new bond will not damage Brazilian companies’ ambitions of returning to markets.

Latin America bond bankers put on brave faces after Petrobras’ return to bond markets soured when its new 10 year traded down as much as five points just two days after pricing. Oliver West reports.

Latin American DCM bankers drew positive conclusions from Petrobras’ first international bond in nearly a year as the Brazilian state oil giant raised more than twice what it needed to for a liability management exercise.

Brazilian bonds ended roughly flat on Thursday after a majority of senators voted for an impeachment trial of president Dilma Rousseff as many investors said the move was already priced in, but there was enthusiasm among bankers about the possibility of a renaissance in issuance from the country.

Gol Linhas Aéreas Inteligentes, the Brazilian low cost airline, insisted on Friday that its proposal to bondholders is “good and fair”, despite a committee owning 25% of its senior bonds claiming that the company had rejected “repeated requests” to engage in discussions with bondholders.

Brazilian bonds reacted only slightly on Friday after Fitch downgraded the sovereign another notch, to BB, and kept the government’s rating on negative outlook.

Brazilian low-cost airline Gol received a triple downgrade this week after announcing a bond exchange that rating agencies qualified as distressed in what has become a familiar story for Latin American corporate credits.

Brazilian telecoms firm Oi has entered a “customary non-disclosure” agreement with Moelis & Company, the advisor for a group of its bondholders, as it looks to work on cutting its debt burden.