Colombia

Colombian airline Avianca is taking longer than expected to refinance a $550m senior unsecured bond coming due in less than a year, triggering ratings agency S&P into cutting the borrower's credit rating, driving up the yield on the note.

Gran Tierra Energy, the Canada-listed oil and gas company that mostly operates in Colombia, held investor meetings and calls on Friday as it plots its second-ever international bond deal.

Clemente del Valle, the CEO of Colombian development bank Financiera de Desarrollo Nacional (FDN), will leave his post on April 12 after six years at the lender.

Colombian airline Avianca could tap investors for a new bond issue in the coming weeks as it looks to refinance an existing bond maturing in May 2020.

Investors who took a chance on an unusual ice-breaker for the 2019 Latin American corporate bond market were rewarded on Thursday as the bond was up 2.75 points the day after pricing.

South American sovereign Colombia pulled off what one banker called a textbook trade on Wednesday, finding strong demand, tightening significantly from price talk, and then seeing the notes edge tighter in the secondary.

Colombia jumped on a turnaround in sentiment on Wednesday to become the third Latin American sovereign in just over a week to receive strong demand for dollar paper.

Colombian corporates have become rare treats for bond investors but investors were able to feast on a high yield debut issuer from the country on Wednesday to give an unusual start to the Latin American corporate primary market for the year.

Ecopetrol, the Colombian state oil company, said on Wednesday that it would redeem a $1.5bn bond maturing in 2019 with cash and confirmed that next year’s $3.5bn-$4bn investment programme would be self-financed. Colombia continues to provide slim pickings for bond markets.

Colombo-Canadian oil company Frontera Energy managed to persuade 91.16% of its creditors to approve an amendment in its bond indenture that will allow it to make larger payments to shareholders.

Colombian oil company Frontera Energy is increasing the reward bondholders will earn if they give it permission to make more payments to shareholders.

Colombo-Canadian oil and gas company Frontera Energy’s attempt to grant itself the power to make larger payments to shareholders is an aggressive move, said bankers as Fitch highlighted it would be a credit negative.