LatAm Bonds

Telecommunications Services of Trinidad and Tobago (TSTT) raised $300m in senior secured bonds on Tuesday.

Bond market participants had been mostly confident that Ecuador’s government could see out mass public protest and stick to IMF-supported measures designed to shore up public finances — until last Friday, at least. But bondholders could be in for a tough time after the government backtracked on these measures.

Colombian airline Avianca has pushed out the deadline on its bond exchange by two weeks as continues negotiations with its broader creditor base on a restructuring of its debt.

Latin American debt capital markets bankers say that the continued absence of Mexican retail and beverages conglomerate Femsa in primary markets could indicate lower risk appetite among investors as the year comes to a close.

One of the strongest credits in Argentina will seek to entice bondholders to push out maturities by turning a portion of its existing bond into cash and increasing the coupon on the remaining amount.

Colombian natural gas distribution company Promigas and Rutas 2 and 7, a securitization to finance a road in Paraguay, brought life to an otherwise subdued week in Latin American primary markets on Tuesday.

One of the strongest credits in Argentina will look to entice bondholders to push out maturities by turning a portion of its existing bond into cash and increasing the coupon on the remaining amount.

A recent innovation in the green bond market — the transition bond — could help expand the issuer base, according to Credit Suisse’s head of environmental, social and governance strategy. But an investor said the standard of green bonds needed to be maintained.

Colombian natural gas distribution company Promigas had a smooth time on its first international bond market outing. Bankers said new issue markets in Latin America would continue to tick over, despite political volatility across the region.

The Inter-American Development Bank has published a report promoting the use of covered bonds as a funding tool for green developments in Latin America and the Caribbean. But it remains to be seen whether risk-averse covered bond investors are ready to take the plunge into emerging markets — particularly given regulatory hurdles in the swaps market.

Chilean copper miner Codelco is having trouble persuading existing note holders to part with their paper, after printing $2bn of new debt at record low yields in September.

Crisis-hit countries that go through a painful debt restructuring programme as part of a bailout enjoy much steeper cuts in their medium-term debt, according to an independent analysis of International Monetary Fund rescue programmes.