Latin America

A group of Province of Buenos Aires creditors immediately backed the issuer after it significantly sweetened the terms on offer to bondholders in an attempt to dodge a default that could be just two days away.

Mexico’s largest airline, Aeromexico, achieved significant price tightening on a five year issue as Lat Am bond buyers said the rare luxury of a 7% handle in primary had piqued their interest, despite acknowledging credit challenges.

The Province of Buenos Aires has given itself an extra working day to track down bondholders and persuade them to accept a delay in an amortisation payment as it seeks to avoid a hard default on its debt.

Latin American bond markets reached record levels of January issuance this week as primary activity ticked over despite the scare about the coronavirus, which the World Health Organisation declared a global emergency on Thursday.

The concessionaire on a 50km toll road in Kingston, Jamaica will begin meeting fixed income investors on Friday ahead of an international bond deal, as bankers say rarer issuers are likely to dominate supply for the foreseeable future.

Buenos Aires Province has offered more incentives to bondholders to encourage them to accept a three-month delay of a small debt payment. The move makes the Argentine sovereign’s aim to restructure all its external debt by March 31 as ambitious.

Mexican non-bank lender AlphaCredit became the latest company from Latin America to schedule fixed income investor meetings as bankers say smaller, high yield issuers are likely to dominate forthcoming supply.

Mexican state-owned oil company Pemex will prepay just $62m of two bonds maturing later this year after receiving a tepid response to its tender offer.

Peruvian fresh food exporter Camposol tightened pricing on its new bond by well over 50bp from initial price thoughts on Tuesday as bankers said the price discovery exercise had exceeded expectations.

Colombian financial conglomerate Grupo Aval found idyllic conditions on its return to international bond markets on Tuesday after an eight absence, offering a minimal concession to existing notes issued by its largest subsidiary.

Bankers and investors say that the Province of Buenos Aires is facing difficulties in persuading 75% of bondholders to support a two month delay in debt payments, prompting the government to offer a sweetener in the shape of advance interest payments.

Mexico’s largest airline Aeromexico will begin meeting fixed income investors on Monday as it plots what would be its first ever international bond issue.