LatAm Bonds

Brazilian pulp and paper company Suzano’s decision not to announce a deal the day after finishing an investor roadshow this week left bankers wondering exactly which Latin American issuers would find conditions ripe for a new deal.

Jamaican telecoms group Digicel is “undermining” its position with creditors by pushing ahead with a bond exchange that rating agencies have deemed as distressed, Fitch Ratings said.

Bond bankers covering Latin America will have all eyes on Brazilian pulp and paper company Suzano on Thursday as it could become the first company from the region to issue in dollar markets in nearly two months.

Emerging market bonds are still under pressure from macro factors, but investors have plenty of capital markets business to keep an eye on as the pipeline, particularly in the Middle East, swells with deals.

The Chilean arm of Spanish lender Santander returned to bond markets on Tuesday with a Sfr115m ($118m) Swiss franc bond maturing in five years and three months.

Jamaica telecoms group Digicel saw its bonds slump after markets reopened on Tuesday as agencies slashed its credit ratings on the back of a bond exchange aimed at giving the issuer more time to deleverage.

Argentina’s plan to accelerate its fiscal adjustment left some Buenos Aires-based analysts satisfied on Monday, but all eyes will be on the reopening of the US market on Tuesday to know whether the government has won back the confidence of markets.

As Argentine bonds finally found a floor last Friday, analysts said that the big adjustment in the Argentine peso may have happened. But the week of volatility drove S&P to become the first rating agency to take action on the sovereign since the turmoil began.

An unprecedented vote of confidence from the International Monetary Fund (IMF) and an unprecedented level of monetary tightening were not enough to arrest a slide in Argentine assets this week, leaving markets fearing the worst.

Undeterred by continued volatility in the region, Brazilian company Suzano Papel e Celulose will seek to break an extended hiatus in Latin American cross-border bond issuance next week. Market participants say it is the ideal credit to restart primary activity.

President Mauricio Macri’s announcement on Wednesday that Argentina had asked the IMF to bring forward some disbursements of its $50bn stand-by agreement could not arrest a slide in the peso or government debt.

Brazilian company Suzano Papel e Celulose will seek to break an extended hiatus in Latin American cross-border bond issuance next week, having enlisted a posse of 13 bookrunners to help it finance an acquisition that will turn it into the world’s leading producer of market pulp.