LatAm Bonds

Syndicate bankers said that a bare looking pipeline does not mean a quiet next few weeks after Brazilian iron ore pellet supplier Samarco Mineração’s was able to tighten a 10 year on Tuesday.

Colombo-Canadian oil company Pacific Rubiales is offering bondholders a dollar price of 113.125 to those who agree to exchange the company’s existing 7.25% 2021 notes for new bonds due 2025 with a coupon of 5.625%.

Retailer Puerto de Liverpool has mandated Bank of America Merrill Lynch and Citi for investor meetings ahead of a debut cross-border bond transaction, according to a DCM banker close to the company.

Financial issuers in Latin America continue to attract bumper order books as Chile’s CorpBanca and Peru’s BBVA Continental printed bonds amid uncertain sentiment in credit markets to follow up on BTG Pactual’s blow-out tier one last week.

While Panamá showed that liquidity is there for the right names in Latin American bond markets this week, for the second week in a row a Colombian oil company had to pay up for its bonds as interest rate uncertainty in the US hits credit markets.

Symptoms of Argentina’s sovereign default in July may soon spill over into the world of corporate debt, with observers increasingly pessimistic about the government’s chances of reviving the economy.

Venezuela government bond prices tumbled again on Wednesday after Standard & Poor’s followed Moody’s in pulling the sovereign down to triple-C territory late on Tuesday.

Chile’s fourth largest bank, CorpBanca defied another difficult day in markets to attract hefty demand for its latest bond issue, allowing it to raise more than initially planned. CorpBanca’s existing bonds trading off during the two day sale process, but bankers on the deal said they were happy with pricing.

Three deals announced first thing Monday and priced later in the day demonstrated that the LatAm bond market was well into its September swing. But another hefty premium paid by a Colombian oil operator showed that investors are discriminating between credits, said bankers.

Chilean lender CorpBanca will look to become the latest financial issuer from Latin America to notch a bond market success on Tuesday after Peru’s BBVA Continental priced its first ever international tier two bond.

Argentine industrial conglomerate Clisa (Compañía Latinoamericana de Infraestructura & Servicios) is looking to push out its bond maturities with a debt exchange that Standard & Poor’s says it not distressed, but could lead to a missed default partly to the sovereign’s recent missed payment.

Latin American borrowers selling new bonds in a market that appears to be backing up after a strong summer could be a sign that issuance conditions are only going to get worse, DCM bankers said on Thursday.