LatAm Bonds

Mexican hotel operator Grupo Posadas is looking to buy back its 7.875% 2017s via a tender offer.

Panamanian electricity generator AES Panama will begin meeting bond investors on Monday ahead of a potential Reg S/144A deal that would be used to finance a tender offer launched on June 4.

Comisión Federal de Electricidad (CFE), the Mexican government-owned utility, was forced to price its dollar return wide of price talk on Tuesday in what syndicate bankers said had been a rare mis-step from a Mexican government issuer.

Even bankers working on the deal admitted to being “pleasantly surprised” by the response to El Salvador-based lender Banco Agrícola’s debut senior unsecured deal on Thursday as LatAm companies enjoyed mixed fortunes in the primary market this week.

The Province of Buenos Aires batted away any lingering liquidity concerns this week as three quarters of bondholders in its dollar bonds due in October agreed to switch into notes maturing in 2021.

Peru’s thriving project bond market notched another deal on Wednesday as an attractive spread over the sovereign curve helped Lima Metro Line 2 fetch over $2.5bn for a $1.155bn secured deal.

Bank of America Merrill Lynch is moving bankers from Brazil and Japan to London, in order to help it pitch Latin American and Asian markets to European corporate banking clients.

LatAm bond bankers were left wondering whether Mexican utility CFE was wise to push ahead with a 30 year bond issue on the same day the long end of the US Treasury curve sold off heavily, as the company was forced into the unusual move of pricing wide of initial pricing thoughts.

Brazilian aircraft manufacturer Embraer’s decision to wait to return to international bond markets appeared vindicated on Monday as it attracted a hefty book as conditions improved in LatAm credit markets.

Bankers said that the Mexican finance ministry’s new brainchild for corporate issuers, Euroclearable Cebures (ECCs), were the right instrument to attract foreign investors into peso bonds after CFE’s 10 year tap last Thursday. But persuading international investors to take currency and credit risk remains a challenge.

Three Latin American companies are meeting investors as bankers say that, despite erratic secondary markets, demand remains given low levels of corporate supply.

An erratic market tone brought contrasting fortunes to this week’s LatAm new issues as the region’s corporate supply line finally picked up.