LatAm Bonds

Colombia’s second largest telecoms company ColTel announced initial price thoughts of mid to high 8% for a perpetual non-call five hybrid bond on Tuesday, as Monday’s deal from its 30% shareholder — the Colombian government — traded up.

Monday was a bank holiday in Colombia but so well has the market reacted to last week’s US Federal Reserve statement that the South American nation ignored a sleepy day in Bogotá to stride into markets and tap its recently issued 2045s.

Liquidity, duration and high credit quality helped the Peru to an oversubscribed bond deal last week after the sovereign announced the results of a liability management.

Emerging markets sovereigns saw US Treasury yields at their lowest in nearly two months at Wednesday’s close and rushed to announce deals on Thursday morning. Peru and Ecuador ensured that Latin America was no exception, but results were mixed.

Colombia’s Pacific Rubiales appears to have headed off a rout of its bonds after it persuaded lenders to relax covenants on its revolving credit facility.

Investors complaining about a lack of corporate new issues from Latin America so far this year have plenty of credit work for the next few days as two companies aim to launch deals with unusual structures.

Peru reopened its global dollar bonds due and Nuevo Sol 2031 notes on Thursday, a day after finishing a non-deal roadshow.

Colombia’s Pacific Rubiales appeared to have headed off a rout of its bonds on Wednesday after it persuaded lenders to relax covenants on its revolving credit facility.

Mexican cement company Cemex told investors on Tuesday that it would continue to look for opportunities to reduce its debt and cut its interest rate burden as it attempts to get closer to an investment grade rating.

Corporación Andina de Fomento made a rare appearance in yen on Tuesday, printing its largest medium term note in the currency in over six years.

Colombia’s second largest telecoms company ColTel (Colombian Telecomunicaciones) is meeting investors about the possibility of issuing a hybrid bond.

Bookrunners on a rare structured bond in Peru designed to enable investors to finance a greenfield project with reduced risk are hoping to issue as soon as this week.