Latin America

Brazilian mining giant Vale returned to bond markets after a three year absence on Monday with a 10 year bond that bankers said left investors hungry for more.

Mexican lender Banorte and Colombia’s second largest telecoms company began investor calls on Monday as Latin American borrowers look for funding in the wake of a rally that reawakened issuer interest in bond markets.

Central American sovereign El Salvador will this week show just how far risk appetite has rebounded in emerging markets as it seeks a long-dated benchmark bond even as an inverted bond curve suggests markets are pricing a high level of stress.

After a rush of dollar issuance from Latin American sovereigns, Uruguay — the last of the region’s investment grade countries to turn to bond markets during the coronavirus pandemic — spotted the chance in late June to become the first EM sovereign to issue abroad in its own currency this year. Herman Kamil, director of the country's debt management office (DMO), tells GlobalCapital how the sovereign bucked the trend.

Suriname took a market-friendly approach to arranging debt relief this week as bondholders agreed to delay the amortisation schedule on its 2023s. But a full restructuring remains on the cards.

As tensions between Argentina and its largest bondholders climbed this week, the government’s prize asset, oil firm YPF, differentiated itself with a debt exchange that, according to rating agencies, does not punish creditors — unlike the sovereign’s proposals.

Debt capital markets and syndicate bankers covering Latin America say that there is plenty of primary market activity on the way before the end of summer, as new issuance ticked over during the shortened July 4 week.

Banco Internacional del Perú (Interbank) sold a $300m subordinated bond on Tuesday just two business days after its largest domestic rival raised $850m in the same format.

Suriname appeared to take a market-friendly approach to arranging debt relief on Wednesday as bondholders agreed to delay the amortisation schedule on its 2023s. But a full restructuring is still on the cards as the outgoing government appeared to wash its hands of responsibility for what is likely to be dire forthcoming economic data.

EM bond investors were treated to a second issue from a Cosan subsidiary in two days on Wednesday as Raizen, the fuel distributor and sugar and ethanol producer, reopened its 5.3% January 2027s.

Brazilian railroad operator Rumo tightened pricing sharply on the first green bond from Latin America in the coronavirus era on Tuesday, as bankers said that the environmental label gave investors more options over where to place the bond.

Banco Internacional del Perú (Interbank) sold a $300m subordinated bond on Tuesday on the back of a 2.5 times subscribed order book, just two business days after its largest domestic rival sold $850m in the same format.