LatAm Bonds

Suriname took a market-friendly approach to arranging debt relief this week as bondholders agreed to delay the amortisation schedule on its 2023s. But a full restructuring remains on the cards.

As tensions between Argentina and its largest bondholders climbed this week, the government’s prize asset, oil firm YPF, differentiated itself with a debt exchange that, according to rating agencies, does not punish creditors — unlike the sovereign’s proposals.

Debt capital markets and syndicate bankers covering Latin America say that there is plenty of primary market activity on the way before the end of summer, as new issuance ticked over during the shortened July 4 week.

Banco Internacional del Perú (Interbank) sold a $300m subordinated bond on Tuesday just two business days after its largest domestic rival raised $850m in the same format.

Suriname appeared to take a market-friendly approach to arranging debt relief on Wednesday as bondholders agreed to delay the amortisation schedule on its 2023s. But a full restructuring is still on the cards as the outgoing government appeared to wash its hands of responsibility for what is likely to be dire forthcoming economic data.

EM bond investors were treated to a second issue from a Cosan subsidiary in two days on Wednesday as Raizen, the fuel distributor and sugar and ethanol producer, reopened its 5.3% January 2027s.

Brazilian railroad operator Rumo tightened pricing sharply on the first green bond from Latin America in the coronavirus era on Tuesday, as bankers said that the environmental label gave investors more options over where to place the bond.

Banco Internacional del Perú (Interbank) sold a $300m subordinated bond on Tuesday on the back of a 2.5 times subscribed order book, just two business days after its largest domestic rival sold $850m in the same format.

Brazilian railroad operator Rumo, which Fitch believes should only suffer a “limited” impact from coronavirus, is preparing what would be the first green bond from Latin America since the pandemic hit.

Mexican real estate investment trust (Reit) Fibra Uno will monitor markets as it continues to look for liability management opportunities after pulling a proposed Reg S-only trade last week, the company’s capital markets vice-president has told GlobalCapital.

Peru’s largest commercial lender Banco de Crédito del Perú (BCP) raised $850m of 10-year non-call five tier two bonds on Friday, offering what some bankers saw as a slim pick-up to its senior debt on the back of a nearly four times subscribed order book.

Two of Mexico’s best-rated issuers eased through bond markets this week, even as the country faces ever-worsening economic forecasts, while bankers said Latin America’s top names could issue multiple times this year.