Latin America

GE Capital’s former Mexican equipment finance business, known as Engenium Capital, is set to give Latin American debt markets a new test with a proposed subordinated perpetual bond offering.

The Republic of Peru may not have yet announced the dual-tranche dollar and nuevo sol trade that it is understood to be planning, but the sovereign opted this week to get going with liability management anyway.

A volatile week with certain Latin American companies failing to announce deals after completing roadshows is not putting other credits from the region off trying their luck.

Latin American financial institutions are continuing to find attractive opportunities in niche markets this week, though the best rated of them all told GlobalCapital it could turn to public bond markets soon.

Panama’s Banco La Hipotecaria is planning to sell its first covered bond. The five year 144A/Reg S deal will be structured under a contractual framework and privately placed.

Aeropuerto Internacional de Tocumen, the airport of Panama City, said on Wednesday that it wants to tap its existing 30 year bonds for a further $650m as Latin America issuers appeared keen battle through tough market conditions.

Emerging market issuance is picking up steam once more, despite the weakening across the board in secondary levels.

Emerging market bond investors are pessimistic about the chances of more Latin American deals appearing this week as market conditions grow more difficult.

Chilean savings and loans co-operative Coopeuch has diversified further its sources of funding by becoming the first triple-B rated borrower from Chile to issue in Asian bond markets.

Venezuelan state-owned oil giant PDVSA is likely to make a principal payment on its amortising 2020s due later this week as all evidence suggests the company is desperate to keep hold of the US refinery that serves as collateral for the bond, according to Torino Capital.

South American development bank Corporación Andina de Fomento (CAF) could turn to the public bond markets to begin its pre-funding for 2019, having issued its largest ever private placement last week to bring its 2018 financing programme close to completion.

Secondary market performance on the slew of Latin American new issues priced on Thursday was mostly underwhelming as Chilean power company Empresa Eléctrica Cochrane confirmed it was postponing a proposed bond issuance.