Latin America

Latin America’s only new issue of the week was down in the grey market on Thursday, despite investors singing the praises of the credit as bankers said the region’s bond markets were struggling to gain momentum in the face of bulging pipeline.

Three Argentine companies are preparing off-shore bond issues and others continue to approve bond shelves as a near three month break in new issue activity from the country could soon come to an end.

Peruvian retail group InRetail is set to send a subsidiary to bond markets for the second time in a month as its pharmacy arm InRetail Pharma plots a $550m debut issuance.

Argentine gas pipeline company Transportadora de Gas del Sur (TGS) has pencilled in April 24 for its international bond market return as it looks to refinance its existing dollar bonds.

Seven Latin American companies announced borrowing plans this week, looking to issue before fourth quarter numbers go stale even as market conditions are far from ideal.

No Argentine issuers have tapped international bond markets since January, but companies from the country keep approving issuance plans.

Light, the Rio de Janeiro electricity company, will begin investor meetings on Wednesday ahead of a potential debut international bond sale.

Transportadora de Gas Internacional (TGI), the Colombian natural gas transportation company, has mandated banks ahead of a proposed $750m senior unsecured issue aimed at refinancing existing bonds.

A more volatile day in markets on Friday didn’t stop Brazilian pension fund RioPrevidencia’s deal trading well on the break as syndicate bankers covering Latin America remain positive on the primary market’s near-term prospects.

Banco de la Ciudad de Buenos Aires (Banco Ciudad) is lining up a potential international bond outing after mandating banks for an Argentine peso-linked trade.

Two high profile Latin American issuers brought the region’s corporate sector back into play on Thursday. Mexico’s Grupo Bimbo and Brazilian lender Banco do Brasil both managed hefty spread tightening after offering conservative price talk, much like the EM sovereigns that dominated primary markets.

Argentine gas pipeline operator Transportadora de Gas del Sur (TGS) became the latest Latin American corporate to join the new issue pipeline on Thursday, as bankers predict market conditions will become friendlier.