LatAm Bonds

Food conglomerate BRF Brasil Foods is likely to bring a new dollar bond to market soon after announcing a tender offer for outstanding debt subject to financing on Wednesday morning.

Brazilian lender Caixa Econômica Federal’s latest bond issue on Tuesday showed that concerns about the government’s use of state banks to increase economic growth are not preventing these institutions from capitalising on consistent demand for LatAm debt.

Brazilian pulp producer Fibria Celulose has offered to buy back its 6.75% senior unsecured notes due 2021 as it plans a new international bond of up to $500m.

Two Latin American pipeline operators clinched tight debut dollar deals this week as the region’s bond market shot back to its pre-Easter form with bumper books.

Brazilian pulp producer Fibria Celulose (Ba1/BB+/BBB-) will be next to test appetite for lower-rated LatAm credits as it plans a 10 year deal of up to $500m. Bankers are confident that demand for LatAm debt remains strong across the ratings spectrum, with the latest high yield deal from the region – for woodboard firm Masisa – performing strongly in secondary.

Colombia oil pipeline operator Ocensa brought spectacular price tightening and bumper books back to the LatAm bond market on Wednesday when it priced a $500m debut bond 40bp inside initial pricing thoughts.

Colombian pipeline company Ocensa plans to price its debut international bond on Wednesday after tightening initial price thoughts to official guidance that would equate to a premium of 25bp over its parent, Ecopetrol, splitting investor opinion on the value of the new deal.

Book sizes in LatAm bonds have subsided from pre-Easter highs but Chilean woodboard producer Masisa showed that the high yield market is still open for new borrowers as the market tightened again on Monday after a poor end to last week.

Brazilian meatpacker Marfrig will buy back $130m of its bonds due 2017 and 2021s after investors tendered far more paper than the maximum amount the company was prepared to repurchase overall.

More robust conditions in the high yield market and an improved situation in Argentina may have contributed to Chilean wood board producer Masisa’s decision to roadshow for a second time in six months, according to investors, with the company expected to try to issue early this week.

A global-local currency bond proved to be one ambitious step too far for a hot LatAm market on Thursday as the Dominican Republic failed to garner enough interest to sell a Dominican peso-denominated bond. But bankers away from the deal praised the sovereign’s first 30 year issue as strong liquidity continues to support high yield issuers.

Investor and issuer price expectations were too far apart on copper producer Paranapanema’s planned debut bond issue, said bankers with knowledge of the deal, which was postponed as Brazilian high yield volumes continue to lag.