Latin America

Bondholders are confident that a late attempt to derail Colombian-Canadian oil company Pacific Exploration & Production’s planned restructuring with Catalyst Capital will not succeed, after creditors this week overwhelmingly approved the proposed reorganisation.

Bankers and investors see no signs of cooling in Latin American bond markets, as hefty inflows continue to leave technicals firmly in the favour of issuers.

trueEX, a New York based interest rate swap trading platform, has begun providing execution of Brazilian real swaps cleared at CME Group.

Bondholders appeared confident that a late attempt to derail Colombian-Canadian oil company Pacific Exploration & Production’s planned restructuring with Catalyst Capital would not succeed after creditors overwhelmingly approved the proposed reorganisation.

Less than 12 hours before a creditor meeting to approve its drawn-out restructuring, Canadian-Colombian oil company Pacific Exploration & Production said on Tuesday evening that it had received a letter proposing an “alternative transaction”.

trueEX, the interest rate swap trading platform, has begun providing execution of Brazilian real swaps cleared at CME Group.

Financiera Independencia (Findep), the Mexican microfinance lender, has closed a tender offer for its 7.5% senior notes due 2019 after an extension to the early bird deadline did little to increase the uptake.

Jamaica will replace $785m of existing bonds with cheaper, longer dated debt after wrapping up a tender offer for its 2017s and 2019s on Friday.

Mexico and Jamaica carried out triumphant, credit positive liability management exercises this week, as Latin American bankers saw little to suggest the overwhelming demand for yield helping to drive activity in the market will soften in the near term.

One of Argentina’s poorest provinces, Chaco, had some bankers and investors eating their words after it sold $250m of bonds on Wednesday and found enough residual demand to trade up by 50-75 cents on Thursday.

Chilean state-owned lender Banco del Estado de Chile raised ¥15bn ($147m) in 10 year bonds this week through a tap of its 'women bonds' initially issued in June.

Jamaica announced initial price thoughts of 7% for a reopening of its 8% 2039 bonds on Wednesday as it looks to raise funds to finance a tender offer for its 2017s and 2019s.