Chile

Latin America’s best rated sovereign lost its last double A rating last week as years of fiscal deterioration catch up with Chile.

Chilean utility AES Gener will buy back $200m of old bonds after investors pledged to sell more than the maximum purchase amount that the company had set before the early bird deadline of July 11.

Chile interrupted the quiet in Latin American bond issue markets on Thursday when it proceeded with a dual tranche peso deal, immediately after wrapping up a roadshow.

AES Gener, the Chilean utility, wants to buy back up to $200m of bonds using cash in hand, it said on Wednesday, as its commitment to reducing leverage looks set to save its investment grade rating.

AES Gener, the Chilean utility, wants to buy back up to $200m of bonds using cash in hand, it said on Wednesday, as the company’s commitment to reducing leverage looks set to save its investment-grade rating.

Factors internal and external to the emerging markets are this week combining to stymie new issuance.

Chile will meet bond investors next week ahead of a proposed local currency issue that will be available to offshore buyers.

Chilean electricity company Enel Chile pounced on improving market conditions to raise $1bn of 10 year bonds on Thursday, after attracting the largest order book for a Lat Am dollar deal in several months.

Chilean electricity company Enel Chile will meet fixed income investors from Friday attempting to find the light at the end of a relatively dark month for Latin American markets.

Chiles’s largest utility by installed capacity and number of clients is looking to become the first Latin American investment-grade company to tap dollar markets since May 3, after announcing investor meetings ahead of a proposed SEC-registered benchmark.

Two prospective bond issuers from Latin America cancelled their fundraising plans this week as external conditions raise borrowing costs for EM issuers.

Chilean state owned lender BancoEstado raised $200m-equivalent of debt in Asian markets this week to reach the half way mark of its $1.6bn medium-term funding needs for the year.