Latin America

The Central American Bank for Economic Integration (Cabei) is set to price a senior unsecured Formosa bond on Wednesday after tightening price discussions.

Colombia may have arrived late to the coronavirus-era Latin American sovereign bond market party, but the wait paid off on Monday as the sovereign notched a dual tranche $2.5bn issue that included its lowest ever coupon on a long dated bond.

Mexican cement maker Cemex is likely to announce a new dollar bond first thing on Tuesday after holding investor calls on the same day Fitch downgraded the borrower and placed it on negative outlook.

Argentina said on Monday evening that a new proposal to creditors was imminent after the government again extended the participation deadline in its restructuring. Optimism continues to grow over the chances of an agreement — even as an IMF statement on the process triggered forthright responses from bondholders.

Suriname’s sovereign bonds traded up in the wake of last week’s elections, despite doubts over a looming debt payment and even as a candidate who has promised discussions over the country’s rapidly rising debt stock looks to be nearing power.

Latin American development bank Corporación Andina de Fomento expects the social bond universe to grow after bringing forward its debut social bond to raise funds for its Covid-19 mitigation efforts.

State-owned oil and gas giant Petrobras finally brought some bond supply from Brazil on Wednesday but, as the new issue traded down on the break, bankers said few Latin American issuers were likely to be persuaded of the benefits of tapping international markets in the short term.

A strong bid from ESG investors helped Latin American development bank Corporación Andina de Fomento (CAF) to €700m of social bond issuance on Wednesday as the multilateral looks to fund its efforts to support the region through the Covid-19 crisis.

Investors and bankers said that Petrobras had achieved exceptionally tight pricing on Wednesday as the oil and gas giant became the first Brazilian issuer to tap international bond markets in times of coronavirus amid a strong rally in corporate paper from the country.

Alantra is buffing its credit portfolio advisory team with the addition of Marcus Evans and Christos Stefanidis, who will join as managing directors in the UK and Greece. The credit portfolio advisory firm is also opening up offices in Latin America and China.

Rating agencies say that senior unsecured bondholders in Latam Airlines face bleak recovery prospects after the Covid-19 pandemic forced the largest airline in Latin America to file for Chapter 11 bankruptcy protection in the US.

Argentina officially entered default for the ninth time on May 22 as the grace period expired on $503m of overdue coupon payments. However, there is increased optimism that the sovereign will reach an agreement with bondholders after the largest creditor group said “direct and immediate discussion” was required.