Latin America

More evidence of the strength of demand from Swiss retail investors for attractive coupons was provided last week when Luzerner Kantonalbank (LuKB) priced an additional tier one (AT1) transaction shortly before the Easter break. Led by LuKB and ZKB (sole structurer), and priced at a coupon of 1.8%, this non-call 6.5 year deal raised Sfr250m.

The US business of Brazilian meatpacker JBS continued to improve its liquidity position with its second bond issue in April on Tuesday. It reopened three existing bonds as part of a liability management exercise.

Chilean pulp and paper company Celulosa Arauco y Constitución is likely to perk up the Latin American bond markets this week as it weighs up the sale of new bonds to finance a tender offer.

Santander’s S3 business is set to join up with Crédit Agricole’s CACEIS, as the two banks look to merge their custody and asset servicing operations, a growing area of revenue for banks.

Just one Latin American issuer comprises the visible new issue pipeline, though bankers say market conditions continued to be favourable during the short working week.

Trinidad Petroleum Holdings (TPH), the state oil company of Trinidad and Tobago, is looking to stave off an $850m August bond maturity with a debt exchange and new senior secured loan.

The US Federal Reserve’s more dovish than expected stance this year triggered the return of Latin America’s largest telecoms company to the dollar bond market after an eight year absence, the group’s chief financial officer told GlobalCapital.

Trinidad Petroleum Holdings (TPH), the state oil company of Trinidad & Tobago, is looking to stave off an $850m August bond maturity with a debt exchange and new senior secured loan.

Latin America’s largest telecoms company, América Móvil, sold dollar bonds for the first time in seven years on Monday, returning to refinance debt and establish two benchmarks.

Empresa de Transmisión Eléctrica (Etesa), the sole electricity transmission company in Panama with exclusive rights to the network, began investor meetings last Friday as it plots an inaugural international bond.

Peruvian power transmission company Transmantaro beat pricing expectations on Thursday, as it clinched a $400m green bond that hit the sweet spot for duration, provenance and credit quality.

Investors in steel producer Companhia Siderúrgica Nacional appear to care far more about the company’s ability to push out $1bn of imminent debt maturities than pricing intricacies. The Brazilian issuer had a far better time in primary markets on Wednesday than on its last outing.