LatAm Bonds

Brazilian conglomerate Cosan returned to bond markets on Wednesday with a $750m 10 year non-call five year trade that bankers on the deal said landed close to fair value.

Mexico showed that even trickier credit stories could take advantage of the borrower-friendly rates environment, surprising many with a $3bn liability management exercise just two weeks after finance minister Carlos Urzúa resigned.

Colombian airline Avianca will use a par exchange to attempt to tackle a $550m May 2020 bond maturity, offering noteholders collateral and potential for a coupon increase — if the company is able to renegotiate certain loans.

Central American sovereign El Salvador will begin meeting bond investors on Wednesday as it looks to issue its first international bond under president Nayib Bukele.

Brazilian airline Gol reopened its convertible bonds for a further $80m last week, taking advantage of a strong performance of its existing bonds and stock to achieve pricing that the CFO described as “fantastic” and leave the company in a position to continue its liability management.

Latin American borrowers continue to make up for lost time amid encouraging issuance conditions as debt capital markets bankers say a few more could sneak through to primary markets before the August break.

Debt capital markets bankers say more Mexican companies could rush to bond markets, as strong conditions for issuance outweigh the increasing concerns surrounding the direction of the country's economy.

Just 16 days after Laurentino Cortizo took office as president, Panama tapped the bond market for its largest ever deal. The government said it needed to raise funds to make overdue payments.

Peruvian holding company Intercorp Peru is looking to tap bond investors for dollar and nuevo sol denominated funding as it seeks to refinance existing bonds and invest in its subsidiaries.

Mexican leasing company Docuformas offered a double-digit yield on its return to bond markets but was able to issue twice the amount of its last deal, offering its first index-eligible bond in the process.

Petrobras will buy back $1.79bn of dollar bonds to go with the $639m-equivalent it spent repurchasing sterling and euro notes last week, but the Brazilian state-owned oil giant’s debt buy-back looks set to fall below the $3bn target on this occasion.

Real estate investment trust (Reit) Fibra Terrafina sold $500m of 10 year bonds on Monday, with hefty tightening allowing the borrower to price closer to its largest Mexican rival than expected.