LatAm Bonds

Banco do Brasil priced it first Basel III compliant perpetual bond this week. A fresh ruling on a long standing court case that could leave Brazilian issuers owning billions of reals meant the issuer will have to pay a higher premium, said bankers on the deal. But with $12.6bn in orders the issuer had no trouble drawing enough demand.

Votorantim Industrial priced a $400m 10 year note this week to fund a partial buy-back of three dollar notes. The exercise was the third tender from Latin America this week, and like its peers Votorantim was able to use the asset and liability management (ALM) component of its deal to pull pricing tighter.

Brazilian sugar and ethanol company Virgolino de Oliveira (GVO) priced a $135m six year bond this week, offering investors a juicy 11% yield for a secured bond and proving that the hunt for fresh Latin America bonds extends beyond the more well-known high yield names.

Votorantim Industrial priced a $400m 10 year note this week to fund a partial buy-back of three dollar notes. The exercise was the third tender from Latin America this week, and like its peers Votorantim was able to use the asset and liability management (ALM) component of its deal to pull pricing tighter.

Uruguay, which started a tender offer this week, issued a $2bn 2050 bond to fund its buy-back of seven different global bonds in maturities ranging from 2015 to 2045.

Chilean lender Banco de Crédito e Inversiones (BCI) is set to sell its third Swiss franc bond on Wednesday afternoon, a curve extending five year note.

Banco do Brasil has built a healthy order book for its first Basel III compliant perpetual bond, which it is aiming price during New York hours on Wednesday. But a fresh ruling on a long standing court case that could leave Brazilian issuers owning billions of reals meant the issuer will have to pay a higher premium, said bankers on the deal.

Marfrig Global Foods new five year non-call three deal traded up almost half a cash point after being priced on Tuesday. The $850m bonds are funding a tender offer on some of the issuer’s more costly dollar debt, and a the large print was a reflection of the favourable response to the tender, said bankers on the bond.

Odebrecht's oil and gas arm opened what should be a flood of Brazilian issuance to coincide with the start of the Fifa World Cup this week. The borrower is on track to price a benchmark perpetual deal on Tuesday within a final guidance range of 7%-7.125%, and a further four issuers from the country are finishing roadshows.

Mexican telco Axtel is asking holders of its $395m 8% 2020 bonds for permission to issue more secured debt. The borrower wants to issue another $150m of senior secured bonds to fund telecom and IT projects.

Cinven has announced its takeover of the telecoms branch of Spanish gas utilities group Gas Natural Fenosa, as the private equity firm seeks to maintain its presence in a sector which has brought it some of its best returns.

Votorantim Industrial is holding investor calls ahead of a benchmark dollar deal to fund a tender offer for up to $1.06bn.