LatAm Bonds

The Dominican Republic re-opened the high yield bond market for Latin American borrowers last Friday, but, despite the new note trading above par, the sovereign is unlikely to find much company in the sub-investment grade space.

Latin America multilateral lender Corporación Andina de Fomento (CAF) held an investor call on Thursday ahead of a likely return to bond markets, although some in the market were surprised that the deal looks likely to be run off emerging markets desks.

Latin America multilateral Corporación Andina de Fomento (CAF) will hold an investor call on Thursday ahead of a likely return to bond markets.

Automotores Gildemeister, the Chilean car seller, is edging closer to an agreement with its bondholders that would see it emerge from default after more than 90% of bondholders agreed to a distressed exchange.

Mexico-headquartered home appliances company Controladora Mabe is offering bondholders a fee to enable Chinese group Qindao Haier to buy General Electric’s share in the borrower.

Panic surrounding the rapid drop in oil prices has left some bankers and investors puzzled at certain relative value levels in Latin American bonds with some credits possibly oversold and others apparently immune to the troubles.

The Dominican Republic gave a further indication of Latin American borrowers’ new pragmatic attitude to market access by taking the unusual step of raising $1bn of 10 year money on a Friday.

Despite the vast majority of emerging market countries being oil importers, the disproportionately high number of oil-related issuers is threatening to push EM volumes down even further this year, with Latin American supply already feeling the effects, according to bankers.

Consensus is growing among investors and analysts that default is inevitable for Venezuela, as oil hits lows not seen in more than a decade.

Energy investor EIG said that bondholders of Colombian-Canadian oil firm Pacific Exploration & Production faced a “de minimis” recovery after the company said on January 15 that it would not make scheduled coupon payments this month.

Mexican infrastructure and construction company Empresas ICA confirmed that it would not make a $6m bond interest payment due on January 25 as it hired a new official to negotiate with bondholders.

Mexican infrastructure and construction company Empresas ICA confirmed that it would not make a $6m bond interest payment due on January 25 as it hired a new official to negotiate with bondholders.