LatAm Bonds

Mexican hotel operator Grupo Posadas reopened its dollar bonds due 2022 for a further $50m on Monday in a drive-by trade that will be used mainly to refinance the $38m left under its outstanding 2017s.

Banco Hipotecario is set to demonstrate the immediate benefits that Argentina’s corporates could receive from the sovereign’s return to bond markets when it taps its 2020s on Tuesday.

A money laundering scandal at one of Aeropuerto Internacional de Tocumen’s concessionaires ended up costing the Panama City airport operator just 25bp and $50m in size after it wrapped up the deal for the second time in a week on Friday.

The City of Buenos Aires is set to become the third Argentine sub-sovereign to tap international bond markets since the sovereign sold $16.5bn of debt in April.

Lat Am bankers said that Aeropuerto Internacional de Tocumen, the operator of Panama City airport, should be relieved after approaching the market with a $500m bond offering just a day after cancelling the settlement of a deal it sold last week.

Brazilian bonds ended roughly flat on Thursday after a majority of senators voted for an impeachment trial of president Dilma Rousseff as many investors said the move was already priced in, but there was enthusiasm among bankers about the possibility of a renaissance in issuance from the country.

Bankers said that Argentina’s grand capital markets plan was functioning perfectly after Mendoza became the second province to tap international capital markets since the sovereign raised $16.5bn in April.

Peruvian power generation company Kallpa Generación could become the latest Latin American company to sell debt as corporate issuance in the region goes through a relative revival.

Lat Am DCM bankers had held hopes that FDN itself would tap international bond markets this year, but with the proceeds from the sale of state energy company Isagen set to be used to provide the development bank with nearly $1bn of regulatory capital, these plans have been postponed.

The CEO of the Colombian development bank in charge of leading financing for the country’s flagship 4G infrastructure programme told GlobalCapital he was upbeat about progress as he revealed a second international bond related to the programme was in the works.

The province of Mendoza was heard to have built a twice subscribed order book the day before pricing an eight year amortising bond that would make it the second Argentine issuer to have tapped international investors since the sovereign returned to the market in April.

Bondholders of Panamá City airport’s recently issued senior secured bonds had a nasty surprise on Wednesday when it cancelled the settlement of the notes after a money laundering scandal involving a concessionaire that represents 7% of the airport’s income. The hiccup is likely to be costly for the issuer should it choose to return to markets.