Latin America

Two days after canceling a tender offer it had planned to finance with a private placement (PP), Brazilian engineering and construction firm Andrade Gutierrez has launched an exchange offer seeking a similar result.

It is less than two months since one of the most serious constitutional crises in Peru’s history, yet on Thursday the sovereign sold Sl10bn ($2.96bn) of new local currency debt at record low yields.

Two days after cancelling a tender offer that it had planned to finance with a private placement, Brazilian engineering and construction firm Andrade Gutierrez has launched an exchange offer seeking a similar result.

Yield-hungry bond investors helped the Republic of Panama to a $1.3bn dual-tranche bond that bankers judged offered little new issue premium, even as rating agencies issue warnings about a deteriorating fiscal picture in the country.

Brazilian engineering and construction firm Andrade Gutierrez has cancelled the buy-back of its bond maturing in 2021 after failing to sell a new five year bond, saying it expects to announce a revised transaction soon.

South American sovereign Suriname is looking to raise $150m of 18-month debt in bond markets to fund the transfer of a dam that the government believes can significantly improve public finances. But the issuer’s only outstanding international bond is tumbling in secondary markets, say investors.

Some Brazilian bankers may be dumbfounded that their country and its highly unpopular president is considered a safe haven, but hope that Latin America’s sleeping giant is on the cusp of an upswing is driving demand for the country’s issuers amid social unrest elsewhere in the continent.

Mexican cement company Cemex attracted nearly $4bn of orders on the way to a first dollar deal in three years on Tuesday. Bankers said the company’s active debt management was gaining a strong following.

Just two days after completing the country’s largest ever international bond issue, Costa Rica’s finance ministry said it would seek approval for a further $4.5bn of issuance once the new minister takes office at the end of the month.

South American development bank Corporación Andina de Fomento said that 61% of orders for its inaugural green bond in public markets, issued on Wednesday, had come from environmental, social and governance (ESG) and green portfolios.

South American development bank Corporación Andina de Fomento (CAF) said that 61% of orders for its inaugural green bond in public markets, issued on Wednesday, had come from ESG and green portfolios as the issuer raised €750m of euros.

Brazilian lender Itaú raised $750m of tier two notes on Wednesday, its first ever issue of Basel III-compliant tier two bonds in the international market.