LatAm Bonds

At least four Latin American companies were this week rounding off roadshows in preparation for dollar bonds. Brazil’s Construtora Andrade Gutierrez, Peru’s Ferreycorp and Chile’s Falabella are lining up debut deals and repeat borrower Transportadora de Gas del Peru is readying a 15 year benchmark.

Brazilian conglomerate Odebrecht closed a dual tranche deal in dollars and Brazilian real on Wednesday. Its engineering arm Constutora Noberto Odebrecht (CNO) will use the proceeds to fund a buyback, which is expected to improve the maturity profile and average cost of the company’s debt.

Brazilian construction company OAS doubled the initial deal size for its debut global bond on Thursday after luring in $5.5bn of orders with a structure attractive to private bank and other investors.

Mexican car parts maker Metalsa made its debut in the bond market on Wednesday with a $300m 10 year transaction.

Brazilian conglomerate Odebrecht closed a dual tranche deal in dollars and Brazilian real on Wednesday. Its engineering arm Constutora Noberto Odebrecht (CNO) will use the proceeds to fund a buyback, which is expected to improve the maturity profile and average cost of that company’s debt.

A clutch of Latin American companies is in the process of winding up roadshows, raising the prospect of busy bond issuance from the region if external market conditions prove conducive.

Mid-sized Brazilian lender Banco Fibra (Ba3/BB-) raised $150m of three year money in a Reg S deal on Friday as it recovers from a difficult period in which expansion into consumer lending hit earnings.

The LatAm market again showed its receptiveness to Central American sovereigns as the Dominican Republic (B1/B+/B) sold a six-times subscribed $1bn bond due 2024 on Thursday.

Brazilian steelmaker Gerdau (Baa3/BBB) and meatpacker JBS (B1/BB-) capitalised on resilient market conditions to raise funds on Monday as Brazilian issuers look to make up lost ground after relatively low deal volumes in the first quarter.

Mexico capitalised on growing demand for EM sovereigns and positive sentiment for its new president’s sweeping reform agenda to re-engage with European investors this week, selling the largest ever single tranche euro-denominated bond from a LatAm issuer.