LatAm Bonds

Brazilian steel producer Companhia Siderúrgica Nacional (CSN) took advantage of a vacant Latin American primary market to add $300m to its 2028s on Tuesday, as bankers say several of the region’s big names are still preparing to take advantage of strong conditions after the US elections.

Latin American bond bankers said that B2/BB- rated Mexican telecoms company Total Play Comunicaciones was the ideal name to take advantage of a swell of risk appetite on Monday as the company sold its first ever international bond in a market that favoured higher yielding credits amid the sell-off in US Treasuries. But Lat Am sovereigns could be back as soon as Tuesday as bankers expect a wave of issuance from the region.

The Province of Buenos Aires extended the deadline on its restructuring proposal for the ninth time on Monday — again without modifying the terms. But with bondholders saying they are considering “all options” after hiring legal advisors last week, the provincial government says it is willing to improve its offer and called on creditors to resurrect negotiations.

Bond investors are again clashing with an Argentine government issuer over restructuring terms, with the Province of Córdoba’s consent solicitation turned down on Sunday evening just two days after launch. However, Córdoba’s creditors published a counterproposal that is considerably more friendly to the province than a previous proposal.

Panamanian toll road operator Empresas Nacional de Autopistas (Ena) and Peruvian healthcare provider Auna began investor calls on Friday as Latin American issuers wasted no time returning to market after last week’s presidential election in the US.

Chile published its first sustainable bond framework on Wednesday, saying it wanted to build on the last year’s green bond issues to further diversify its investor base.

Spreads on Latin American bonds tightened sharply during US election vote counts on Wednesday in a promising — if only preliminary — sign for potential issuance conditions after the result is declared.

A group of institutional investors owning a portion of Suriname’s $550m of 2026 bonds and $125m of 2023s has hired Newstate Partners as adviser in anticipation of a request for debt payment relief from the South American country.

Argentine power company Gennaia is at risk of defaulting on its domestic dollar bonds as a result of capital controls issued by the Central Bank of Argentina (BCRA), Fitch said on Tuesday as it slashed the rating on the issuer’s international notes.

Bond markets in Latin America were quiet on Monday ahead of Tuesday’s US election. But the Mexican peso, and bonds issued by state-owned oil giant Pemex, could be most vulnerable to a surprise or uncertain result given they are two of the most liquid assets in EM.

As the Argentine Province of Buenos Aires approaches six months in default, a creditor group holding nearly half of the issuer’s international bonds has hired a major international law firm and says it is “prepared to evaluate all available options”.

A group of real money investors owning a “significant portion” of Suriname’s international bonds are forming a creditor group to negotiate with the country, as a new government prepares to restructure its debt.