Latin America

Mexico’s new government acted swiftly to show that it would at least engage with financial markets this week. But investors' reaction to a tender offer for Mexico City airport bonds suggested it was the beginning of a troublesome relationship.

Brazilian government-owned oil company Petrobras has said it is looking to deleverage as part of its new five year business plan. But it will still be a regular borrower in capital markets. Furthermore, though some Latin American debt capital markets bankers say their January pipeline is looking bearer than it usually does at this stage of the year, Brazilian public sector issuers could be the one active area of the market.

Investors are turning their attention to 2019, hoping for better returns than 2018 afforded. Despite the US Federal Reserve’s rate hiking ambitions and uncertainty over a US/China trade war, investors are looking forward to next year.

Jefferies, which is in the process of a huge expansion of its emerging markets offering, has hired an ex-Goldman Sachs trader in New York.

NiQuan Energy Trinidad Limited, the owner of a gas-to-liquids plant in Trinidad & Tobago, will begin to meet bond investors on Tuesday as it looks for a debut deal that could bring some unexpected December activity to the Lat Am primary market.

Mexico City Airport Trust (Mexcat) bondholders finally found respite in secondary markets on Monday as the government-owned company, which had raised $6bn of debt for the now cancelled Texcoco airport, launched a tender offer and consent solicitation for the notes.

Peru set the final size of its new 10 year local currency benchmark at Sl10.35bn ($3.06bn) on Friday after allocating some Sl4.438bn of notes to investors participating in a tender for existing bonds.

Brazilian steelmaker Gerdau will buy back $1bn of existing dollar bonds after receiving over $1.345bn of offers from bondholders to participate in a tender offer during the early-bird period, taking advantage of a strong cash position after asset sales and a recent local bond issue.

Santander Brasil has tested the country’s Letra Imobiliária Garantida (LIGs) covered bond regime with two privately placed deals.

Odebrecht Engenharia & Construçäo finally admitted defeat in its attempt to avoid default on Monday, as it acknowledged that it would not be making a $11.5m coupon payment due on its $519m of 4.375% 2025 bonds, paving the way for a restructuring.

Power generation and distribution company Nautilus Inkia is looking to give Latin America’s corporate bond markets one final burst of life in 2018, as it hits the road eyeing a 144A/Reg S senior unsecured offering.

Patience paid off for Peru on Thursday as its status as one of the safest economies in Latin America helped the sovereign to a new local currency benchmark that received strong interest from international investors.