Latin America

A group of institutional investors owning Argentine government bonds said on Tuesday that they have hired Mens Sana — which is also advising creditors of the Province of Buenos Aires — and UBS as financial advisors ahead of a likely sovereign restructuring.

Despite its only previous outstanding bond trading at distressed levels and its president being sentenced to 20 years in jail for murder during the sale process, Suriname has managed to issue $125m of new amortising bonds that analysts say should be crucial for a proposed electricity reform.

Standard & Poor’s on Monday became the third rating agency to react to political uncertainty in Bolivia, by putting its BB- rating on negative outlook. Yet its bond prices have begun to recover.

A group of institutional investors who own bonds issued by Argentina’s largest regional government, the Province of Buenos Aires, has hired advisors as analysts say a January amortisation from the issuer could be indicative of the new administration’s attitude to debt obligations.

After the Federal Reserve’s hawkish attitude in 2018, a more dovish mood at the US central bank meant that 2019 was smooth sailing for many emerging market borrowers. However, political storms meant the turbulent asset class still threw up its share of rocks for borrowers to navigate. The GlobalCapital editorial team selected the best deals of the year, considering not just the eventual result of the trade, but the backdrop against which the deals were sold. The winners are presented here. Congratulations to those involved.

US rate cuts were, admittedly, the driver behind the Latin American international bond market’s return to form in 2019. Although regional growth remains disappointing, there are encouraging technical and fundamental signs to be found

A friendly face in the finance ministry was apparently enough to lift Argentine sovereign bonds ahead of a looming restructuring, but analysts warned that the government was still showing no willingness to implement the austerity measures that would make debt sustainable.

Another Latin American borrower was set to price dollar deals this week as GlobalCapital went to press, as smaller issuers took a rare opportunity to hold the full attention of investors.

Bonds issued by Avianca traded up this week after the Colombian airline completed the final stage of a complex restructuring, effectively giving it permission to push out a looming bond maturity by three years.

Mexican chemicals company Cydsa is likely to tap bond markets on Thursday as smaller LatAm issuers continue to raise funding ahead of what is likely to be a busy January.

Colombian lender Bancolombia made a late year dash to international markets on Tuesday as it sold Basel III-compliant subordinated notes to fund the buy-back of old style tier two bonds.

Colombian airline Avianca has finally completed negotiations with existing creditors, allowing it to wrap up a much-anticipated $250m loan from United Airlines and Kingsland Holdings as well as $125m in financing from new investors.