Colombia

Colombian asset prices hardly budged this week after Standard & Poor’s brought the South American sovereign — once an EM darling — within one notch of junk status.

South American sovereign Colombia is just one notch above junk status with Standard & Poor’s after weaker than expected growth took its toll on government finances.

Colombian toll road project Rutas al Mar is looking to meet investors ahead of a potential local currency bond transaction, according to DCM bankers, in what would be the third issuance from the country’s flagship 4G road-building programme.

Colombia’s finance ministry has turned to a former employee to run the public credit office after the previous chief funding official resigned last week.

Argentine lender Banco Hipotecario and Colombian utility EPM sold local currency deals on the international market this week but market participants said a limited buyer base is restricting momentum in these types of trades.

Empresas Públicas de Medellín (EPM) offered an attractive premium to the Colombian government, said analysts, after beating FX volatility to issue the largest ever global Colombian peso deal on Tuesday.

Colombian lender Banco Davivienda sold $500m-equivalent of peso-denominated bonds in global markets on Thursday to kick off an expected flurry of global local currency deals from Latin American issuers.

A potential Costa Rican colón bond issue is arguably the most eye-catching of a flurry of global local currency transactions planned by Latin American borrowers as bankers say the bull market could hit new heights.

Colombia’s third largest lender Banco Davivienda is planning a peso-denominated issuance of up to $500m-equivalent a week after Bancolombia reignited FIG issuance from the country.

Colombia’s largest lender, Bancolombia, raised $750m of tier two subordinated bonds this week in the first Basel III-compliant transaction from the country.

One rare and one debut issuer from Latin America are meeting bond investors as bankers say that a quieter couple of weeks of activity is no indication of a slow end to the year.

Colombia’s largest bank will begin meeting bond investors next week as it looks to raise up to $1bn of dollar-denominated 10 year tier two notes to fund a tender offer for existing bonds.