LatAm Bonds

The operator of Santiago de Chile’s metro system, Metro, found ample demand for a new dual tranche issue on Monday as investors continue to show appetite for highly rated government-related issuers even at tight new issue concessions. The borrower's state support means it is a in a strong position to do Latin America's first buy-back of the pandemic.

The Republic of Peru has approved a further $4bn of debt issuance to finance coronavirus spending just two weeks after tapping bond markets for $3bn.

Empresa de Transporte de Pasajeros Metro (Metro) could become the second Chilean government-linked issuer to offer bonds in the international market in less than a week, as investors say that the corporate market is likely to remain the preserve of the best-rated issuers.

With Covid-19 measures expected to add $4bn to Chile’s debt issuance this year, the sovereign is still to define the source of another $4.5bn of funding, according to the country’s head of international finance.

While emerging market bond investors are spending their days in the Covid-19 crisis battling with poor liquidity, cash calls from end investors, and even the odd new issue, debt relief has remained a threat, albeit only a vague one. But at policy level the topic is of growing importance, and what began as a matter for official institution creditors took a step closer to embroiling the private sector this week. Ross Lancaster, Phil Thornton and Oliver West report.

When Ecopetrol, which has been talking about bringing a bond for a long time, chose to do so last Friday, after an oil price crash in the middle of the coronavirus pandemic, it took the market aback. Fridays, after all, are not when any self-respecting Latin American bond issuer comes to the market. But there is nothing typical about Latin America’s primary markets these days.

Corporación Andina de Fomento (CAF), the South American development bank, could follow fellow Lat Am multilateral Cabei into bond markets after mandating for an SEC-registered US dollar deal.

Central American development bank Cabei announced its return to US bond markets in the midst of the Covid-19 crisis with its largest ever bond deal, as a strong bid from Asian buyers helped the lender to raise $750m inside regional comps.

Chilean government-owned copper miner Codelco said on Wednesday that it had sought to increase its cash position in the face of market uncertainty after wrapping a well oversubscribed return to bond markets.

Central American development bank Cabei is set to price its first 144A bond in nearly eight years on Wednesday after setting initial price thoughts.

With Covid-19 measures expected to add $4bn to Chile’s 2020 debt issuance, the sovereign is still to define the source of $4.5bn of funding for this year, according to the country’s head of international finance.

When Ecopetrol, which has been talking about bringing a bond for an absolute age, chose to do so last Friday after an oil price crash and in the middle of the coronavirus pandemic, it took the market aback. Fridays after all, are not typically when any self-respecting Latin American bond issuer comes to the market. But there is nothing typical about Lat Am primary markets these days.