LatAm Bonds

After two debt exchanges classed as distressed, resulting in two defaults in 2013, Mexican telco Axtel looks to have convinced bondholders of its turnaround.

Privately owned investment bank BTG Pactual sold only the second ever Basel III-compliant tier one bond from Brazil on Thursday, with the execution and pricing attracting a level of effusive praise rarely heard from rival bankers.

Chilean bank CorpBanca and BBVA’s Peruvian arm began investor meetings on Thursday as the September rush to market gathered pace in Latin America.

Mexican telco Axtel and Chilean pulp company CMPC clinched well received new issues on Wednesday as Latin America’s corporates push ahead with issuance despite apparent waning sentiment in bond markets.

Andres Esteves’ BTG Pactual will aim to become the second Brazilian bank to issue a Basel III compliant tier one perpetual bond when it completes a roadshow on Wednesday.

Chilean bank CorpBanca and BBVA’s Peruvian arm will begin investor meetings on Thursday as the September rush to market gathers pace in Latin America.

LatAm DCM bankers said Ecopetrol’s timing was unfortunate as the Colombian oil company sold a long 10 year bond on a difficult Tuesday in markets. However, Mexico’s Midas touch was enough to see petrochemicals company Mexichem obtain what bankers judged to be a better received deal.

Petrochemicals company Mexichem and Chilean pulp producer CMPC were met investors on Monday to take the number of Latin American corporates on bond roadshows to four with the region expected to reach all-time high non-sovereign issuance levels in 2014.

Brazilian low cost airline GOL has mandated five banks to arrange a new bond in conjunction with the tender offer for its 7.5% 2017s, 9.25% 2020s and 10.75% 2023s.

Mexican cement firm Cemex was selling euro and dollar bonds on Thursday to fund the buyback of the company’s dollar 2018s and 2020s. The euro tranche of the Reg S/144A notes had been launched by press time on Thursday evening but leads were still determining a price for the dollar deal.

Brazil took advantage of the expected negative supply of Latin America sovereign bond paper to sell a $1bn tap of its 4.25% 2025s on Wednesday, nearly flat to the country’s outstanding bonds.

BTG Pactual has mandated BB Securities, Bank of America Merrill Lynch, Bradesco BBI, BTG Pactual, Citi and Santander to arrange a perpetual tier one deal.