LatAm Bonds

Struggling Brazilian telco Oi received a welcome lift in the eyes of its bondholders on Monday after a Russian investment group proposed to invest in the company if it merges with rival Tim.

Peruvian sugar cane producer Corporación Azucarera del Perú (Coazucar) has given bondholders more time to commit to its tender offer as it looks to cut its exposure to the dollar.

Latin America development bank Corporación Andina de Fomento (CAF) has picked leads for a euro transaction and will hold investor calls this week.

Mauricio Macri, the conservative mayor of Buenos Aires, outperformed expectations on Sunday’s presidential elections in Argentina, meaning bond markets may receive a fillip on Monday morning.

Sovereigns and quasi-sovereigns continue to dominate Latin America new issues, as Uruguay this week showed that attractive all-in funding costs are on offer thanks in large part to low base rates.

Latin American trade finance bank Bladex is understood to be monitoring levels in Japan’s Pro-Bond market and could become the second name from the region to issue there.

Little-known South American funding agency Fonplata is working with rating agencies on obtaining a credit rating and may hit the bond markets as early as next year as it seeks to raise capital and increase leverage.

DCM bankers hope that Mexican lender Nafin’s planned green bond could be the first of many from the country, and that other development banks in Latin America will follow Mexico’s model.

The prospect of interest rates in Europe remaining low for a long time means that Uruguay is not likely to raise euro-denominated debt “in the very short term”, said a debt official from the country, but the sovereign is looking at the market as a way to continue to diversify its investor base.

A struggling nuevo sol is turning Peru’s companies rapidly away from international bond markets as the issuer of the tightest Peruvian corporate bond ever looks to rid itself of all dollar exposure.

Latin American trade finance bank Bladex is understood to be monitoring potential yield levels in Japan’s Tokyo Pro-Bond market and could become the second name from the region to issue there.

Government-owned development bank Nacional Financiera (Nafin) is plotting what would be the first ever green bond from Mexico and — unlike the previous two such bonds from LatAm — will be ringfencing the proceeds.