LatAm Bonds

Mexican homebuilder Javer on Wednesday evening set the coupon on a new 10 year bond that it will issue as part of a $210m liability management exercise and an additional $30m of issuance.

Brazilian conglomerate Odebrecht issued a $500m 12 year bond on Friday, with proceeds to be used in a liability management exercise. The company has offered to buy back $500m worth of a combination of its $200m 9.625% 2014s, its $400m 7.5% 2017s and its $500m 7% 2020s for cash in order to extend its debt maturity profile.

International bond markets have been made jumpy by the surprise poll success of Peruvian presidential hopeful Ollanta Humala, a nationalist candidate who has drawn comparisons with Venezuela’s Hugo Chavez.

Peruvian Inkia Energy priced its debut $300m 10 year non-call five bond yesterday via lead managers Bank of America Merrill Lynch and Credit Suisse. The power generation company’s note, which has an 8.375% coupon, was priced at 99.169 and yields 8.5%. The senior unsecured note is now trading around par.

The Brazilian government has raised a new 6% tax on any foreign loans or bonds with a maturity up to one year issued by Brazilian companies, in an attempt to lower pressure on the real, which has appreciated around 40% against the dollar in the last two years. Previously, the government only taxed debt with a three month maturity or lower.

Mexican homebuilder Javer on Wednesday evening set the coupon on a new 10 year bond that it will issue as part of a $210m liability management exercise and an additional $30m of issuance.

Mexican cement maker Cemex launched a euro and dollar high yield bond on Tuesday. The transaction, which could be priced later in the day, is the European high yield market’s first drive-by deal since the recent volatility caused by the Japanese earthquake, underscoring the high demand for junk-rated corporate paper.

Brazilian conglomerate Odebrecht issued a $500m 12 year bond on Friday, with proceeds to be used in a liability management exercise. The company has offered to buy back $500m worth of a combination of its $200m 9.625% 2014s, its $400m 7.5% 2017s and its $500m 7% 2020s for cash in order to extend its debt maturity profile.

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