LatAm Bonds

Bond market participants said that Argentina’s decision to postpone the payments of some short-term Treasury bills and “re-profile” the rest of its debt was unlikely to provide a sustainable solution to the country’s financial woes.

Adrian Neuhauser, the new chief financial officer of Avianca, said on Thursday that he thought a “very high percentage” of bondholders would participate in a bond exchange that could unlock up to $250m of financing from United Airlines and shareholder Kingsland Holdings.

Three Latin American borrowers are meeting investors in advance of likely bond deals as primary market activity in the region looks set to pick up after a quiet August.

BBVA’s Mexican arm will look to sell Basel III-compliant tier two debt to fund a buy-back of old style subordinated bonds after launching a tender offer on Wednesday.

After three further days of turmoil for Argentine bonds this week, finance minister Hernán Lacunza said after Wednesday’s market close that the government would ask bondholders to voluntarily extend debt maturities in an effort to dissipate concerns over a possible default.

Banco de Crédito del Perú (BCP) could raise over $1bn-equivalent of dollar and nuevo sol denominated bonds in international markets as it looks to fund a buy-back of senior debt.

Colombian airline Avianca has extended the early-bird period of a vital exchange offer after United Airlines and Kingsland Holdings said they needed a bigger take-up from bondholders in order to provide at least $250m of shareholder funding.

To make a real difference, green finance needs to prove it is tough on dirty companies. How can the sector look at the fires ravaging the Amazon region and still take comfort in having embraced a bond issued to finance cattle purchases there?

Brazilian state-owned lender Banco do Brasil is offering bondholders a fee to bring the change-of-control clause in two of its old notes in line with the documentation in its newer bond issues.

Industrias Peñoles announced on Tuesday that it will return to the bond market in September after a seven year absence. One investor called the mandate a “healthy sign” ahead of the September opening of the primary market.

Bond investors say that market sentiment in Latin America has emerged mostly unscathed from brutal sell-off in Argentine assets over the last two weeks and that the tone should be positive going into a busier period in September.

Ecuador’s sovereign bonds traded up on Wednesday as Fitch removed the borrower from negative outlook on the back of lower short-term financing risks.