Latin America

Fitch Ratings slashed the rating of Mexican textiles company Kaltex by three notches to CC on Monday, warning that the issuer could soon look to restructure its $320m senior unsecured notes maturing in April 2022.

Latin American borrowers can look forward to a continuation of supportive funding conditions thanks to the dovish turn of the Federal Reserve, according to a new report from Moody’s.

Some EM investors are starting to see value in bonds issued by troubled Mexican state oil company Pemex, while further potential support from the government could lift the bonds further.

AES Gener’s junior subordinated hybrid exercised the brains of both syndicate bankers and investors on Monday as they struggled to find appropriate comps. But a hefty book and impressive aftermarket performance left no doubt over appetite for LatAm paper.

Brazilian airline Gol Linhas Aéreas Inteligentes sold a rare exchangeable bond on Thursday after receiving demand from a combination of convertible arbitrage funds, EM bond managers and the long-only equity community, GlobalCapital understands.

Brazilian government-owned oil company Petrobras will repurchase nearly half of its 2023s after wrapping up the first stage of a tender offer that could total $4.5bn.

After several weeks of speculation among DCM bankers as to why it had not issued, Brazil’s government finally announced a new 10 year trade on Thursday to keep up the momentum in the Latin American new issue markets.

Brazilian airline Gol Linhas Aéreas Inteligentes is set to price a rare exchangeable bond on Thursday, two business days ahead of schedule, after demand arrived faster than expected, GlobalCapital understands.

Some investors are beginning to fear that the rally in emerging markets is running out of rope. Threats to Chinese growth could carry over and damage the prospects of emerging markets economies, according to Jupiter Asset Management.

Brazilian government-owned oil company Petrobras will repurchase nearly half of its 2023s after wrapping up the first stage of a tender offer that could total $4.5bn.

Lat Am bond bankers and investors may not have found an answer to Monday’s hot topic of the subordination premium on AES Gener’s junior subordinated hybrid, but the issuer left no doubts about the market’s appetite for paper with a highly oversubscribed trade.

Government-owned Costa Rican lender Banco Nacional de Costa Rica (BNCR) will wrap up a tender offer for its dollar bonds ahead of schedule after the early-bird stage of the buy-back was oversubscribed.