Latin America

Latin American DCM bankers are hoping that Brazilian pulp and paper producer Suzano Papel e Celulose gave the market the fillip it needed as the borrower enjoyed smooth execution on a surprise outing on Monday.

Soft demand and higher costs continue to hit Grupo Kaltex, leading Standard & Poor’s to downgrade the Mexican textiles company to B- last week and maintain the bonds on negative outlook.

Syndicate bankers say more Latin American issuers could follow Argentine oil and gas company YPF and Brazilian state-owned bank BNDES in buying back existing bonds as low dollar prices make tenders attractive and can provide investors with liquidity.

Owners of Barbados’s international bonds are set to put up resistance to the sovereign’s restructuring plans, complaining that they have had poor communication from the defaulted government.

Some emerging markets (EM) syndicate bankers in New York are daring to dream that there could be new issuance from Latin America next week, but several buy-side players are less than enthusiastic at the prospect of new deals.

With dollar markets requiring hefty concessions for Latin American issuers, the only new issue activity from the region since early July has arrived in the form of Santander Chile’s Swiss franc trade at the beginning of the month.

Mexico City on Wednesday became the largest city — and first city in Latin America — to sign the green bond pledge, a declaration seeking to encourage governments and companies to use green finance.

As the market waits for Brazilian banks to launch the first covered bonds out of the country, market participants from the country say it provides the lenders with a useful new instrument. But whether they can reach investment grade status in euros or dollars depends on currency risk mitigation, according to a Moody’s official.

Owners of Barbados’ international bonds on Tuesday issued a scathing rebuke to the government’s restructuring process, in response to the island nation’s domestic debt exchange.

French bank Natixis has hired Benito Berber as chief economist for Latin America as it builds out its platform in the region.

Brazilian state-owned development bank BNDES is looking to buy back up to $1.65bn of existing debt after launching tender offers for two dollar bonds.

Investors’ eyes are on the Middle East this week as a slew of borrowers bring Sukuk trades to market, but while hopes are high for successful deals, a Turkish central bank rate decision looms large in investors’ minds.