LatAm Bonds

A potential Costa Rican colón bond issue is arguably the most eye-catching of a flurry of global local currency transactions planned by Latin American borrowers as bankers say the bull market could hit new heights.

The Republic of Ecuador raised $2.5bn of 10 year notes on Wednesday to take its total borrowing for the year to $5.5bn as — for the first time in seven deals — the sovereign mandated an institution beyond Citi to manage the issuance.

Government-owned Banco do Brasil attracted more than $6bn of orders for a $1bn trade on Wednesday as bankers said there was a strong pent-up bid from Brazilian debt.

Emerging market bond investors have returned from the International Monetary Fund/World Bank Annual Meetings in Washington DC, held last week, with little more than jetlag and a feeling that they learned little that was new.

Chile-headquartered Falabella will begin investor meetings on Wednesday as it plots its first international bond issuance in three years.

Brazil’s third largest airline could sell international bonds as soon as this week after mandating for a fixed-income investor roadshow.

Uruguay is in advanced discussions with clearing houses to make it easier for international investors to participate in its local curve, as the sovereign looks to integrate its domestically issued notes with the nominal global peso curve established this year.

Colombia’s third largest lender Banco Davivienda is planning a peso-denominated issuance of up to $500m-equivalent a week after Bancolombia reignited FIG issuance from the country.

Brazilian steelmaker Gerdau has increased the amount of bonds it will buy back in its latest tender offer after raising $650m of 10 year notes on Thursday.

Colombia’s largest lender, Bancolombia, raised $750m of tier two subordinated bonds this week in the first Basel III-compliant transaction from the country.

Brazilian steel producer Gerdau this week became the latest Latin American issuer to take advantage of hugely benign conditions to issue new debt inside where its existing curve was trading.

Luis Caputo, the finance minister of Argentina, said on Wednesday that the South American sovereign would likely return to the euro-denominated bond market in late October or early November.