LatAm Bonds

Argentina’s default on exchange bonds on July 30 has inspired in Argentina no inclination to budge from its position that it will refuse to pay holdout creditors more than the 30 cents on the dollar that exchange bondholders received in 2005 and 2010.

Bankers started the week surprised at Findeter’s decision to sell its debut international deal in pesos, while some investors unwilling to take local currency risk lamented the chance to get their hands on some rare new Colombian paper.

Landlocked South American sovereign Paraguay surprised some with its timing by issuing its second ever international bond on Monday. But though bankers away from the deal said the 30 year deal created a steep curve, others said the borrower’s strategy was spot on.

The chief financial officer of Latin American development bank Corporación Andina de Fomento (CAF) said the lender’s return to the public dollar markets on Tuesday for the first time in two years showed its new-found appeal to SSA-dedicated bond investors.

Ask LatAm DCM bankers about their competition, and Natixis is not the first name on many lips. But the head of the French bank’s one year-old Latin America platform reckons 12 months of solid progress making a mark on the lending league tables have put the institution in a good position to make the most of recent hires across several product areas.

Colombian infrastructure lender Findeter (Financiera de Desarrollo Territorial) triggered hopes that local currency denominated debt may be back on the menu in Latin America after a hiatus of more than a year after it raised $500m-equivalent in Colombian pesos on Wednesday.

Colombian infrastructure lender Findeter (Financiera de Desarrollo Territorial) confirmed that it plans to sell its debut international bond in global peso format this week, surprising bankers and sparking hopes of a revival in global local currency issuance.

Landlocked South American sovereign Paraguay surprised some with its timing by issuing its second ever international bond on Monday. But though bankers away from the deal said the 30 year deal created a steep curve, others said the borrower’s strategy was spot-on.

Latin American development bank Corporación Andina de Fomento (CAF) opted to return to the dollar market with a $1bn three year on Tuesday, opting for a fixed rate note rather than an FRN because it wanted to issue a large benchmark.

Peruvian fishmeal and fish oil producer Corporación Pesquera Inca (Copeinca) has extended the deadline for bondholders to consent to changes in its indenture that will allow owner China Fishery Group more freedom over the company.

Brazilian low-cost airline GOL Linhas Aéreas Inteligentes (GOL) has bought back $186.6m of dollar bonds, the company said.

Making money on Argentine assets has been mainly a guessing game throughout the recent court case, admits one hedge fund manager. And market movements in bonds and shares left investors flummoxed this week.