Latin America

Petrobras’s latest new issues gradually recovered ground in secondary markets this week as the overhang effect from a huge exchange offer began to wear off.

Chilean credit union Cooperativa del Personal de la Universidad de Chile (Coopeuch) joins the ranks of Chilean borrowers welcomed into the Swiss franc bond market. Thursday’s outing further illustrates that the love affair of the Chilean borrower and Swiss buyer not only endures but burns brightly.

EM bond investors showed no supply fatigue in Latin America on Wednesday as Mexican chemicals company Mexichem attracted a huge book on the way to its first bond issue since 2014, and paid little or no new issue premium for the privilege.

Colombia’s largest bank will begin meeting bond investors next week as it looks to raise up to $1bn of dollar-denominated 10 year tier two notes to fund a tender offer for existing bonds.

Two Mexican chemical companies wrapped up investor meetings on Tuesday and syndicate bankers away from the deals expect the resulting bond syndications to fly through the market even as recent deals underperform in secondary.

Both of Brazilian oil giant Petrobras’s new bonds issued last Monday will jump to jumbo size after the response to the company’s exchange offer surpassed the expectations of many market participants.

Brazilian water and sewage company Aegea Saneamento e Participações is looking to raise $400m via its debut international bond issuance, according to rating agency reports.

Nearly 95% of holders of Latin America oil and gas company GeoPark’s $300m of bonds due 2020 agreed to sell their paper as part of tender offer, the issuer said on Thursday evening.

Brazilian oil giant Petrobras appeared to have timed its return to bond markets to perfection on Monday, but an underwhelming secondary market performance left some investors disappointed.

Two Mexican chemical manufacturers announced roadshows this week, with both Mexichem and Cydsa planning to wrap up meetings on September 26.

Argentine finance minister Luis Caputo said that Argentina would issue two further international bonds in 2017 although it will likely avoid the dollar market, where it has raised over $9.5bn of funding so far this year.

Mexican cement company Cemex and Chilean electricity name Colbún both launched tender offers of existing bonds this week, planning to buy back old notes with cash.