LatAm Bonds

Mexico’s state-owned electric company Comisión Federal de Electricidad (CFE) turned to Taiwan’s bond market this week to sell a dollar bond — its latest foray into the Formosa bond market.

Chilean power generator Colbún saw its new 10 year bond rocket on the break as Latin American credit was driven tighter by a rally in global markets.

Mexico state-owned utility Comisión Federal de Electricidad (CFE) returned to the Formosa market for the fourth time on Wednesday, clinching its largest trade yet in Taiwan.

On the day that the yield on 10 year US Treasuries dipped below 1% for the first time ever, Chilean power generator Colbún batted away amid market volatility to not only reopen the Latin America new issue market but clinch the lowest coupon on its curve.

Argentina's economy ministry has appointed two dealer-managers and a financial advisor to manage the restructuring of the country’s $67bn of foreign law sovereign bonds.

China’s importance in global pulp and zinc markets puts pulp producers Suzano and Arauco — alongside Peruvian miner Volcán — among the Latin American corporates most vulnerable to the coronavirus (Covid-19) outbreak, according to Fitch Ratings.

Continued IMF support and a government attempting to exercise market-friendly policy mean that Ecuador’s bonds should begin to attract buyers after the sovereign was the worst hit in last week’s rout in Latin American credit, say some bond market participants.

Debt capital markets bankers expect the Argentine government to mandate dealer-managers on its mega distressed debt exchange by early next week, as they plan for a complex transaction in which size could make up for low fees.

Latin American bond bankers are putting on brave faces as the Covid-19 epidemic threatens to thwart what several sell-side houses say is an exceptionally busy March pipeline.

As volatility finally hit Latin American primary markets, the only action from the region’s issuers this week came through liability management, with Peruvian miner Nexa and Brazilian airline Gol both prepaying bonds.

Mexican polyethylene producer Braskem Idesa’s 2029s were the worst performing bonds in emerging markets on Wednesday after the country's president Andrés Manuel López Obrador said he was analysing whether he could break a contract under which Pemex supplies the company with ethane.

Nexa Resources Perú, the mining company previously known as Compañía Minera Milpo, will buy back more than half of a dollar bond maturing in 2023 as it’s set to wrap a tender offer.