Colombia

Banco GNB Sudameris, the bank that took over HSBC’s Colombian, Peruvian and Paraguayan businesses five years ago, is likely to target retail investors for an imminent 10 year non-call four subordainted tier two bond, according to syndicate bankers.

Lat Am syndicate bankers said that a $210m five year debut bond issue from Colombian glass and window maker Tecnoglass this week showed the strength of the region’s credit markets — despite the company not raising the maximum slated amount.

Colombia glass and window maker Tecnoglass sold $210m of five year non-call three bonds on Monday in a deal anchored by US high yield investors.

Donald Trump’s inauguration as US president had no effect on Latin American bond markets, said syndicate bankers, although a sell-off in US Treasuries meant the buoyant market tone had softened by the end of the week.

Colombia returned to dollars after a 15 month absence on Wednesday, becoming the first investment-grade Latin American sovereign to issue in the currency this year and notching up a large, tightly priced deal.

Six Latin American issuers attracted more than $45bn of orders between them this week as the region’s bonds markets looked set to open Donald Trump’s term as US president in flying form.

Two Latin American sovereigns priced dollar deals on Wednesday in what some were interpreting as a rush to beat possible volatility surrounding Donald Trump’s inauguration as US president on Friday. But if markets are worried about what’s round the corner, they’re yet to show it.

Tecnoglass, the Colombian window manufacturer, may sell dollar bonds this week just two months after it postponed its initial issuance plans after Donald Trump’s US election victory.

Bankers said that none of the three names in the visible Lat Am pipeline would be likely to issue any time soon as a sell-off in US rates brought sudden volatility to EM bond markets, even in economies not considered affected by a Donald Trump presidency.

Colombia’s Pacific Exploration & Production announced on Tuesday that all conditions had been met on a corporate restructuring plan that will allow the oil company to leave creditor protection.

Colombia window manufacturer Tecnoglass began meeting bond buyers on Tuesday ahead of a potential dollar market debut.

Colombia’s second largest lender, Banco de Bogotá, was able to tighten pricing on the tap of its existing tier two bonds by 30bp on October 28 as bankers said the issuer had attempted to generate strong demand with very generous initial price thoughts.