Colombia

Gulf supply remained the dominant theme in CEEMEA bonds again this week as markets reopened in buoyant mood after Monday’s US holiday.

Wednesday’s announcement from Colombia’s government that it had successfully concluded peace talks with the FARC guerrilla group after more than 50 years of war comes just as the sovereign lines up a prefinancing issue in dollars.

Colombia’s dollar bonds did not budge on Wednesday after the announcement of a successful conclusion of four years of peace talks, but investors and analysts said the news was crucial for the approval of a tax reform needed for the sovereign to maintain its credit rating.

DCM bankers covering Colombia said they expect the South American sovereign to issue in the autumn despite announcing on Tuesday it would increase local market bond sales by Cp8tr ($2.74bn) this year.

Colombian oil company Pacific Exploration & Production’s board of directors said on Monday night that it continued to prefer Catalyst Capital’s original restructuring proposal, which could be approved in a Canadian court on Tuesday, to an alternative bid made last week.

A last minute bid by O’Hara Administration to interrupt Colombian oil company Pacific Exploration & Production’s restructuring with Catalyst Capital offers sweeter terms for creditors but may struggle to find support among bondholders.

Bondholders are confident that a late attempt to derail Colombian-Canadian oil company Pacific Exploration & Production’s planned restructuring with Catalyst Capital will not succeed, after creditors this week overwhelmingly approved the proposed reorganisation.

Bondholders appeared confident that a late attempt to derail Colombian-Canadian oil company Pacific Exploration & Production’s planned restructuring with Catalyst Capital would not succeed after creditors overwhelmingly approved the proposed reorganisation.

Less than 12 hours before a creditor meeting to approve its drawn-out restructuring, Canadian-Colombian oil company Pacific Exploration & Production said on Tuesday evening that it had received a letter proposing an “alternative transaction”.

Canadian-Colombian oil company Pacific Exploration & Production has raised $500m of debtor-in-possession (DIP) financing from certain existing bondholders and private equity firm Catalyst Capital as it looks to wrap up a restructuring of its debt, including $4bn of bonds.

Canadian-Colombian oil company Pacific Exploration & Production has raised $500m of debtor-in-possession financing from certain existing bondholders and private equity firm Catalyst Capital as it looks to wrap up a restructuring of its debt — including $4bn of bonds.

Mexican real estate investment trust Fibra Uno and Colombian state-owned oil company Ecopetrol reopened existing dollar notes on Wednesday to take advantage of euphoric conditions in Lat Am bond markets.