LatAm Bonds

Fitch placed recession-hit Ecuador’s B rating on negative outlook at the end of last week but bond investors took little notice as the sovereign’s 2022s, issued in late July, reached 11 points above par.

Wednesday’s announcement from Colombia’s government that it had successfully concluded peace talks with the FARC guerrilla group after more than 50 years of war comes just as the sovereign lines up a prefinancing issue in dollars.

Pesquera Exalmar, the Peruvian fishmeal farm, has extended the deadline of a tender offer and consent solicitation on its 7.375% bonds due 2020 from August 19 to August 30 as it seeks bondholder approval for a new senior secured loan.

Latin America global local currency issuance, one of the biggest casualties of the so-called 'taper tantrum' that rocked EM bond markets in 2013, is back on the agenda as dollar yields plummet.

Colombia’s dollar bonds did not budge on Wednesday after the announcement of a successful conclusion of four years of peace talks, but investors and analysts said the news was crucial for the approval of a tax reform needed for the sovereign to maintain its credit rating.

Activity is ramping up in emerging markets with several mandates coming through this week. While the unrelenting buying of the asset class continues, idiosyncratic risks are a reminder of the volatility that can arise.

Standard & Poor’s said on Tuesday that there was at least a one-in-three chance of Mexico receiving a downgrade to its BBB+ rating within the next two years, although bond markets showed no reaction to the announcement.

DCM bankers covering Colombia said they expect the South American sovereign to issue in the autumn despite announcing on Tuesday it would increase local market bond sales by Cp8tr ($2.74bn) this year.

Colombian oil company Pacific Exploration & Production’s board of directors said on Monday night that it continued to prefer Catalyst Capital’s original restructuring proposal, which could be approved in a Canadian court on Tuesday, to an alternative bid made last week.

Pesquera Exalmar, the Peruvian fishmeal farm, has extended the deadline of a tender offer and consent solicitation on its 7.375% bonds due 2020 from August 19 to August 30 as it seeks bondholder approval for a new senior secured loan.

Mexican government-owned development bank Nacional Financiera (Nafin) will announce a green bond in Mexican pesos at the end of the month, which will aim to raise up to Mp2bn ($109m) to finance renewable energy projects.

A last minute bid by O’Hara Administration to interrupt Colombian oil company Pacific Exploration & Production’s restructuring with Catalyst Capital offers sweeter terms for creditors but may struggle to find support among bondholders.