LatAm Bonds

Moody’s has warned that InRetail Shopping Malls’ plans to raise new debt — in part to fund an acquisition by a separate subsidiary of its parent company — were a 'distinct credit negative', as the Peruvian company plots investor meetings this week.

The largest dairy company in Argentina is looking at calling its existing 2021s in July after filing a new debt shelf, according to market sources in Buenos Aires.

Latin American borrowers appeared willing to brave weaker markets this week as three issuers announced deals — though only two had been priced by Thursday’s close.

Brazilian mining giant Vale is set to continue its rapid deleveraging process with a tender offer for up to $1.75bn of two bonds maturing in 2021 and 2022 and the redemption of all of its 2020s.

Brazil’s largest private sector lender Banco Itaú was unable to tighten pricing from initial price thoughts on its return to bond markets on Monday as investors remain hesitant to add risk in choppy markets.

Brazilian mining giant Vale is continuing its liability management efforts, with a tender offer for up to $1.75bn of two bonds maturing in 2021 and 2022, having already decided to exercise its right to redeem all of its 2020s.

Petrochemicals company Unigel has set initial price thoughts of 8% for its planned seven year international bond debut. The deal may provide the best indicator yet of how market appetite for Lat Am credit was affected by February’s volatility.

Emerging market bond investors are reporting low secondary flows in a market dominated by new issues this week. And the mixed performance of those new deals is expected to weigh on investor appetite for this week’s trades.

Brazil’s largest private sector lender Banco Itaú sold $750m of additional tier one notes on Monday, just three months after its most recent issuance in the format.

The largest dairy company in Argentina is looking at calling its existing 2021s in July after filing a new debt shelf, according to market sources in Buenos Aires.

China Resources Land tapped the Panda bond market for the first time since July 2017, raising Rmb6bn ($945.6m). But few onshore investors who bought the three year bond looked at the trade as a real Panda, according to bankers on the deal.

Unigel, the Brazilian petrochemicals company, became the first Latin American corporate name to announce deal plans since early February, and bankers say this will provide a far tougher test of market sentiment than Paraguay's deal.