Latin America

Primary markets in Latin America stayed silent on Tuesday amid a hefty sell-off in EM currencies, with Ecuador and Argentina continuing to provide country-specific volatility.

A 675bp rate hike from the Argentine central bank, BCRA, on Friday finally brought some support to the peso. But the sovereign’s bonds continue to trade poorly as the currency’s recent free-fall highlighted the many vulnerabilities in the country’s economic recovery.

Central America development bank Cabei (BCIE in Spanish) has hired a new head of debt capital markets to lead its bond issuance programme.

Aeropuerto de Tocumen, the airport of Panama City, was the only Latin American to raise debt in international markets this week as it raised $225m of 30 year money.

Two Argentine corporates postponed bond issues on Thursday as the Central Bank of Argentina’s (BCRA) attempts to control the fall in the peso proved fruitless, leaving investors asking questions about the country’s economic outlook. Oliver West reports.

Engineering and construction company Andrade Gutierrez Engenharia, one of the largest contractors in Latin America, failed to repay a senior unsecured bond that matured on April 30.

Chilean state-owned copper mining company Codelco raised $600m of 30 year money in Taiwan on Monday in the first Formosa trade from a Chilean corporate.

Petróleos Mexicanos (Pemex) sold 5.5 year Swiss franc bonds on Thursday, its first issue in the market for two years. With international supply falling in the last few years, Swiss investors leapt at the opportunity to buy investment grade Latin American credit.

Brazilian oil and gas producer Petrobras will continue to tidy up its debt profile with the buy-back of two bonds due in 2020, it said on Wednesday.

Engineering and construction company Andrade Gutierrez Engenharia, one of the largest contractors in Latin America, failed to repay a senior unsecured bond that matured on April 30.

Camposol has launched a tender offer for its 10.5% 2021s for the second time this year, as the Peruvian agricultural company looks to revive a new bond sale.

Chilean state-owned copper mining company Codelco raised $600m of 30 year money in Taiwan on Monday in the first Formosa trade from a Chilean corporate.