Latin America

Ecuador publicly took on dissenting bondholders this week, after a debt restructuring that some major institutional investors consider to be exemplary proved to be not to everyone’s liking.

Banco BV, the banking arm of Brazilian conglomerate Votorantim, raised $500m of five year senior unsecured bonds on Wednesday in a deal well supported by retail, local and Brazilian bank buyers as well as the usual EM-dedicated institutional accounts.

Panama’s second largest bank, Banistmo, is planning a first international bond issue in nearly three years, according to rating agency reports.

A group of institutional investors owning Belize’s $526.5m of 2034 bonds said on Thursday that they would support an effort by the government to capitalise the next three coupon payments due on the bond. But some analysts say payment delays are unlikely to cure the country’s debt woes.

Telecom Argentina is adding a sale of new bonds to an exchange offer in what would be the first Argentine new issue in international bond markets in over a year.

Martín Guzmán, Argentina’s finance minister, was not to be budged from his position on the country’s debt restructuring offer on Monday evening even as three groups of creditors signed a cooperation agreement to jointly express their rejection of the government’s latest offer.

Just weeks after rating agencies stripped the issuer of its investment grade rating, Brazilian petrochemicals giant Braskem sold $600m of hybrid bonds that bankers said showed the company’s commitment to its credit metrics.

Monday’s official launch of Ecuador’s debt restructuring offer split the bond markets, with large creditors claiming that the sovereign had set an example to be followed while others dismissed its approach as “aggressive” and that it set a “harmful precedent”.

Mexican real estate investment trust Fibra Uno returned to the bond markets on Wednesday to price a postponed tap of its 2030 and 2050 notes.

Lat Am bond markets continued to demonstrate growing risk appetite as Brazilian petrochemical company Braskem began marketing hybrid bonds on Tuesday.

Ecuador’s market-friendly debt restructuring hit a bump in the road this week as bondholders put forward proposals that would include conditions around environmental, social and governance (ESG) factors.

The run of new bond issues from Latin America credits looks set to extend this week after the slew of corporates from the region to tap the market last week mostly emerged with a combination of slim new issue concessions and positive aftermarket performance.