Latin America

Landlocked South American country Paraguay is looking at the possibility of creating a sovereign wealth fund as part of a possible adjustment of its fiscal responsibility law, said deputy finance minister Humberto Colman Castillo.

Research firm Capital Economics has chosen a new chief emerging markets economist from within the company, GlobalCapital understands, after Neil Shearing was promoted from that job to become chief economist.

The board of Transportadora de Gas del Norte (TGN), the Argentine gas provider, has approved a bond shelf of up to $600m as the company weighs up a potential debut international bond, it said in a regulatory filing on Tuesday.

Debt capital markets bankers are beginning to pitch additional tier one deals to Chile’s banks as the South American country’s general banking law brings regulations in line with Basel III recommendations.

Latin American bond bankers are presenting unusual structures to potential buyers, even as markets remain weak and more straightforward, well-known credits are managing only modestly successful deal execution.

Meatpacking company Minerva began investor meetings on Wednesday ahead of a planned new perpetual bond issue that will pay for a tender offer of the company’s existing perps, as Brazilian issuers focus on liability management.

Mexican food producer Sigma Alimentos was the only Latin American borrower to issue internationally this week as bankers said that issuance conditions remained difficult.

RHI Magnesita, the Austrian-Brazilian maker of refractory products, has refinanced its debt with a new €305.6m five year term loan.

Peru’s dollar denominated sovereign bonds dipped in secondary markets on Wednesday afternoon after president Pedro Pablo Kuczynski (PPK) resigned before a pending impeachment vote, but had recovered most of their losses by end of play.

AT&T’s Latin American subsidiary began investor meetings on Wednesday ahead of an international bond debut that may include an Argentine peso tranche.

Funding officials said green bonds had stimulated other sustainability work across their organisations at the Climate Bonds Initiative conference in London on Tuesday.

Fitch Ratings said on Tuesday that Vrio Corp, AT&T’s Latin American subsidiary, was planning a $1.5bn international bond issue half denominated in Argentine pesos.