LatAm Bonds

Banco Pichincha has become Ecuador’s first green bond issuer, after selling $150m of notes that were bought by three international development lenders.

Brazilian meatpacker Marfrig said last week that it would redeem $446m of bonds issued three years ago, to improve its debt profile.

Suriname’s outstanding 2026s traded up this week, after the government clinched $125m of short-term financing that includes coupon payment support for existing bonds and lays the ground for fiscal savings via an electricity reform.

Latin American bond bankers are reporting busy January pipelines as issuers look to take advantage of low rates before the US election season hits next year.

Big European investment banks pivoted towards the Americas during 2019 in an attempt to boost revenues and position themselves for the next downturn, writes David Rothnie. With large M&A across the industry still off the table, banks are finding scale through joint ventures and alliances.

A group of institutional investors owning Argentine government bonds said on Tuesday that they have hired Mens Sana — which is also advising creditors of the Province of Buenos Aires — and UBS as financial advisors ahead of a likely sovereign restructuring.

Despite its only previous outstanding bond trading at distressed levels and its president being sentenced to 20 years in jail for murder during the sale process, Suriname has managed to issue $125m of new amortising bonds that analysts say should be crucial for a proposed electricity reform.

Standard & Poor’s on Monday became the third rating agency to react to political uncertainty in Bolivia, by putting its BB- rating on negative outlook. Yet its bond prices have begun to recover.

A group of institutional investors who own bonds issued by Argentina’s largest regional government, the Province of Buenos Aires, has hired advisors as analysts say a January amortisation from the issuer could be indicative of the new administration’s attitude to debt obligations.

US rate cuts were, admittedly, the driver behind the Latin American international bond market’s return to form in 2019. Although regional growth remains disappointing, there are encouraging technical and fundamental signs to be found

A friendly face in the finance ministry was apparently enough to lift Argentine sovereign bonds ahead of a looming restructuring, but analysts warned that the government was still showing no willingness to implement the austerity measures that would make debt sustainable.

Another Latin American borrower was set to price dollar deals this week as GlobalCapital went to press, as smaller issuers took a rare opportunity to hold the full attention of investors.