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EM LatAm

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  • Two of Latin America’s most established borrowers, the Colombian sovereign and Brazilian bank Itaú, returned to international bond markets on Tuesday. Though both issues were priced roughly as expected, bankers on and away from the trades said there were signs that Lat Am’s roaring start to 2021 was losing steam.
  • Holders of bonds issued by Argentine state oil and gas company YPF are seeking to form a creditor committee to block a proposed distressed debt exchange that analysts say is unlikely to gain much traction with creditors.
  • Mexican firm Nueva Elektra del Milenio sold $500m of seven-year senior secured bonds on Tuesday, benefiting from a structure that granted it an investment grade rating.
  • SRI
    The Association of Brazil’s Indigenous Peoples has written an open letter to BlackRock’s CEO Larry Fink, who is expected to publish his annual letter to stakeholders this week. Apib wants BlackRock to end what it calls its “complicity” in the destruction of the Amazon rainforest, and to consult indigenous people as it finalises its new policy on biodiversity and deforestation.
  • Six of the 11 Latin American borrowers to have priced or announced new cross-border bonds so far in 2021 have opted to show off their ESG credentials while doing so — either through dedicating the use of proceeds or by issuing in the more novel sustainability-linked format. Brazil is leading the way, with three further mandates on Monday.
  • Mexican lender Crédito Real on Monday became the first Latin American non-bank financial institution (NBFI) to tap international bond markets since the coronavirus pandemic began as it raised $500m of seven year debt.