LatAm Bonds

There are signs of resistance from bondholders struggling to see the value in primary bond deals, but Latin America’s new issue market marched on this week with three corporates issuing on Thursday.

Peru took advantages of renewed enthusiasm for its economy and highly favourable market conditions to sell PEN10.252bn ($3.02bn) of 12 year sol-denominated bonds as part of a liability management exercise on Wednesday and Thursday.

Ecuador surprised some bond investors by doubling the size of its 2022s on Tuesday despite being unable to tighten pricing from initial price thoughts.

Peru continued to chip away at its dollar debt on Wednesday with a nuevo sol-denominated 12 year bond, the new money component of which will be used to finance a cash tender for dollar bonds.

Panama’s Global Bank has announced a tender offer for its structured covered bond.

Bank of America Merrill Lynch has hired former Credit Suisse fixed income sales banker Jose Hernandez-Ortiz as senior vice-president on its EM Lat Am solutions desk, GlobalCapital understands.

Ecuador tapped its September 2022s for a further $1bn on Tuesday but was unable to tighten pricing despite offering a new issue premium close to three digits.

Turmoil in Turkish bond markets put a dampener on Monday’s open after Moody’s junked the sovereign's credit rating. But with activity in the Middle East and, after a two year absence, Nigeria, the stage is set for a busy few weeks in EM.

Three Mexican borrowers are meeting bond investors this week as Latin American issuers continue to look to take advantage of low rates.

Standard & Poor’s downgraded Barbados’s credit rating from B to B- on Friday, provoking an angry reaction from the leader of the opposition as the sovereign has crashed from investment-grade as recently as 2012 to the edge of full triple-C status.

Venezuelan state oil giant PDVSA is considering sweetening its exchange offer to bondholders in an effort to push out debt maturities, after last week’s debt swap proposal received little traction.

A green bond to be used to construct Mexico City’s new airport led the way for a storming day of issuance in Latin America on Thursday, leaving no doubt that EM debt markets are still hot.