LatAm Bonds

At least 12 Argentine provinces are either deep in restructuring talks with bondholders or are preparing to begin negotiations. But as Argentina’s finance minister Martín Guzmán calls for regional governments to renegotiate their debts in line with the federal government’s sustainability guidelines, investors are unlikely to grant the same level of debt relief they agreed with the sovereign.

Trade finance lender Banco Latinoamericano de Comercio Exerior (Bladex) sold its first dollar bond in five years on Wednesday, boasting an order book that remained strong despite spread tightening to give Latin American primary markets an encouraging start to September.

Brazil’s largest independent oil and gas company, Petro Rio, will begin investor calls on Thursday ahead of a proposed debut bond issue that bankers say will test the strength of the market like no other Latin American issuer this month.

Consorcio Transmantaro, the Peruvian transmission company, added $200m to its green bonds maturing in 2034 on Wednesday.

Private Mexican energy company Infraestructura Energética Nova (IENova) began calls with fixed income investors on Wednesday as it plans a second visit to international bond markets.

Government-owned lender Banco Nacional de Costa Rica (BNCR) will use cash to finance a buy-back for a portion of senior bonds maturing in 2023, sources close to the borrower told GlobalCapital on Tuesday.

The world’s largest independent McDonald’s franchisee, Arcos Dorados, is planning to tap its senior unsecured bonds due 2027 as it looks to refinance debt raised to tackle the Covid-19 crisis.

Consorcio Transmantaro, the Peruvian transmission company and one of the few Latin American issuers to have improved its credit profile this year, is turning to bond markets for the first time since April 2019 to finance investments.

Banco Hipotecario, the Argentine bank focussed on mortgage and consumer loans, is asking holders of a dollar bond maturing in less than three months to swap their paper for a new 2025 bond and cash. If bondholders do not accept the terms, default is likely, says Moody’s.

Brazilian aircraft manufacturer Embraer began investor calls on Tuesday as it prepares its first new issue since several ratings downgrades earlier in the year.

At least 12 Argentine provinces are either deep in restructuring talks with bondholders or are preparing to begin negotiations. But as Argentina’s finance minister Martín Guzmán calls for regional governments to renegotiate their debts in line with the federal government’s sustainability guidelines, investors are unlikely to grant the same level of debt relief they agreed with the sovereign.

Argentina’s foreign law exchange bonds will go free to trade this week and offer early clues as to how markets are likely to value the newly restructured credit, after some promising but inconsistent signs emerged from grey market trading last week.