Latin America

ACI Airport Sudamérica, the operator of Uruguay’s largest airport, has received consent from its bondholders to delay a year of debt payments to help it through the Covid-19 pandemic — just weeks after creditors of its Argentine sister company achieved the same.

Argentine authorities were understood to be weighing up debt restructuring proposals from several bondholders on Sunday evening as default looms large for the South American sovereign.

The Province of Buenos Aires (PBA) legally entered default this week amid pleas from its creditors for serious restructuring negotiations. But Argentine sovereign bondholders are still holding out hope that they may come to an agreement with the national government.

Holders of Avianca’s international bonds are keenly watching the Colombian government’s next move after the airline filed for Chapter 11 bankruptcy protection in New York.

Argentina’s turnaround under former president Mauricio Macri turned out to be a castle built on sand. But as the country heads towards default, the slick execution of its bond market fairytale between 2016 and 2018 could show the Fernández government how to handle investors.

Central American sovereign Belize, which last restructured its international debt in 2017, is likely to seek to delay a $13m coupon payment due in August on its only external bond, believes Moody’s.

The International Monetary Fund is likely to approve a request from Chilean authorities for a two year flexible credit line (FCL) that the country’s central bank says is being sought “to reinforce the external position in a high risk external scenario”.

Grupo Energía de Bogotá (GEB), the Colombian electricity and gas distributor, tightened pricing sharply on a new 10 year deal as bankers reported huge appetite for the pick-ups being offered by the sturdiest investment grade EM companies.

The Argentina turnaround story under former president Mauricio Macri turned out to be a castle built on sand. But slick execution of the country’s two year bond market fairytale between 2016 and 2018 can provide the new government with some guidance in dealing with investors now it is staring down the barrel of default.

Argentina’s dollar bonds climbed again on Monday after the issuer extended the deadline for a restructuring offer, as a change in tone from the government offered slight hope that an agreement can be reached.

The International Monetary Fund (IMF) looks likely to provide Peru with a flexible credit line of around $11bn as the South American country works to preserve it liquidity position.

Grupo Energía Bogotá (GEB), the electricity and gas distributor majority-owned by the District of Bogotá, Colombia, is looking to hit bond markets to raise around $400m as government-linked issuers dominate the Latin America primary markets.