Latin America

Despite volatile market conditions that usually make local currency issuance a tough sell, some bond investors say they have their eyes peeled for a Peruvian nuevo sol trade after the sovereign completed the buy-back of dollar debt on Tuesday.

Pulp and paper producer Suzano Papel e Celulose raised $500m of 30 year debt on Tuesday two months after first mooting the idea, putting it closer to completing the financing of its takeover of fellow Brazilian company Fibria.

The state bank of Chile is bookbuilding a return to the Swiss franc bond market.

Leasing company Engenium Capital was holding follow-up calls with investors on Monday as it stays engaged with the market ahead of a proposed dollar debut, but bankers said timing was tricky for any Latin American names — let alone Mexican.

Costa Rica’s bond prices are dropping as international bond investors take a pessimistic stance over the likely outcome of a constitutional court verdict on proposed fiscal reforms.

Mexico this week sent global markets a stark reminder that its politicians were not afraid to follow through on radical policies as the incoming president cancelled the capital city’s new $13bn airport. The move caught fund managers across the world off guard, despite the fact it had been a much-advertised campaign promise, writes Oliver West.

A rally in Brazilian dollar bonds slowed but did not reverse this week after right-wing Jair Bolsonaro eased to victory in last Sunday’s presidential election.

Brazilian meatpacker Minerva will make a second attempt this year to buy back its outstanding perpetual bonds after announcing a tender offer on Thursday.

Chilean state-owned oil company Enap (Empresa Nacional de Petróleo) showed Lat Am credits can still raise bond funding on Tuesday, though its latest deal is unlikely to have borrowers racing to markets.

Fitch took swift action on Wednesday Mexico’s rating after incoming president Andrés Manuel López Obrador (Amlo) cancelled the capital city’s proposed new airport, placing it on negative outlook.

Chilean state-owned oil company Enap (Empresa Nacional de Petróleo) raised $680m of amortising 11 year notes on Tuesday in a drive-by trade that showed Lat Am borrowers are still willing to battle tough conditions to get funding done.

Bondholders in Mexico City’s proposed new airport were left speculating how Andrés Manuel López Obrador (Amlo), the country's president-elect, planned to return their money on Monday after the said he would cancel the project.