LatAm Bonds

Fitch downgraded Odebrecht Offshore Drilling Finance (OODF) from B- to CCC on Monday, highlighting its concerns that the Brazilian issuer’s discussions with bondholders could lead to a restructuring of its bonds.

Reports on Friday that the Argentine government would begin negotiations with holdout bond investors on Wednesday sparked buying in the nation’s bonds as the sovereign — rated Caa1/CCC+/CCC rated and still in default — proves an unlikely beacon of stability in Latin America.

Latin American syndicate bankers are crossing their fingers for a period of calm in global markets in order to allow the region’s borrowers to kick off their international funding for 2016, with sovereigns dominating the pipeline.

Latin American bond bankers are already down in the dumps about a bare January pipeline, and a tough first week of trading in global markets has done little to lighten their mood. But this should not make Lat Am borrowers hesitate once they are ready for market: conditions are unlikely to get better.

Latin American development bank Corporación Andina de Fomento will look to private markets to sell further SRI bonds this year, its CFO told GlobalCapital, after the issuer raised over $100m equivalent of debt via a so-called “water bond”.

Latin American development bank CAF (Corporación Andina de Fomento) sold its first ever bond marketed as an SRI deal on Tuesday with a “Water Bond” issued in Uridashi format and denominated in Turkish Lira and South African Rand.

After three consecutive years of record volumes, in 2015 Latin American bond market momentum was halted by crises in Brazil and plunging commodity prices. Though volatility will continue and issuers and investors often struggle to meet on price, the market looks mature enough for a modest recovery in 2016. Oliver West reports.

Masisa, the Chilean woodboard producer, is looking to buy back up to $100m of its 9.5% 2019s as part of its attempts to reduce debt in reaction to a rapidly increasing leverage ratio.

Latin American bond bankers are already complaining about a bare January pipeline, and a poor first day’s trading in global markets has even prevented several US issuers from getting their funding for the year going. But this should not make Lat Am borrowers hesitate once they are ready for market: conditions are unlikely to get better.

A better day of trading in Latin American bonds did little to improve DCM bankers’ moods on Tuesday as they say they are preparing for the toughest January in many a year.

Despite the currency tanking against the dollar in 2015, investment in Brazilian real denominated medium term notes is at a healthy level.

Bank of America Merrill Lynch jumped three spots in Dealogic’s Latin America bond bookrunner league tables in 2015 to take the top spot in a year characterised by a sharp drop in volumes.