Colombia

Colombian natural gas distributor Promigas could return to bond markets a year after its debut as it mandated banks for a reopening of its 2029s.

Latin American bond bankers were receiving mixed messages from primary market activity this week as Colombian bank GNB Sudameris cancelled a proposed tier two deal but two other companies notched strong deals.

Colombia will become the first country to ever draw funds from an IMF flexible credit line (FCL), the Fund’s facility for its star pupils. In these exceptional times, Colombia should ignore any stigma associated with tapping IMF funding and be applauded for healthy pragmatism.

Colombian bank GNB Sudameris looked likely to price a Basel III-compliant tier two bond on Thursday at the second time of asking, but bankers said issuance windows were becoming narrower after another volatile day.

Colombia will become the first country to draw down on an International Monetary Fund flexible credit line (FCL), its instrument for top quality borrowers. The government is likely to use the loan — rather than bond markets — to complete its external funding needs.

Latin American development bank Corporación Andina de Fomento (CAF) set pricing on Tuesday for a five-year dollar bond, having already gathered enough indications of interest overnight on Monday to cover what had been announced as a $500m deal.

Colombian airline Avianca is confident it will be able to exit bankruptcy soon after the Colombian government said it would provide just over 30% of the new money required in the company’s proposed debtor-in-possession (DIP) financing — much to the shock of some politicians in the country.

Senior secured bondholders of Colombian airline Avianca could recover 45% of their principal if they provide debtor-in-possession (DIP) financing to the company, which has been in chapter 11 bankruptcy proceedings since May.

Colombian airline Avianca’s senior secured bondholders will be able to recover around 45% of their principal if they agree to provide debtor-in-possession (DIP) financing to the company, which has been in Chapter 11 bankruptcy proceedings since May.

Latin American development bank Corporación Andina de Fomento (CAF) raised Sfr350m ($382m) of five year paper on Monday with its first green bond issue in the Swiss franc market.

The Inter-American Development Bank (IADB) said on Monday that it would elect its next president virtually in September as it rescheduled its annual meetings for the second time.

The run of new bond issues from Latin America credits looks set to extend this week after the slew of corporates from the region to tap the market last week mostly emerged with a combination of slim new issue concessions and positive aftermarket performance.