Latin America

Three large Brazilian real denominated MTNs issued by Export-Import Bank of Korea (KEXIM) indicate that Brazilian investors are making a tax play, according to bankers.

A boost in deal activity in March has brought Latin American year-to-date new issuance volumes back to parity with 2015 as the end of the first quarter draws near, according to Dealogic.

Brazilian pulp producer Eldorado Brasil Celulose is plotting a potential debut cross-border bond that investors believe could receive a decent reception — if the company waits long enough to issue.

Brazilian low-cost airline Gol Linhas Aéreas Inteligentes said on Monday it had hired PJT Partners to advise it on its capital structure and liquidity, immediately provoking words of warning from Standard & Poor’s.

The Republic of Paraguay was the only Latin American borrower to sell bonds in a short Easter week for much of the region, as conditions continue to improve for new issues.

A continued rally in Brazilian bonds is giving DCM bankers in São Paulo some hope that issuance from the country may be on its way — although it will not be a flurry and volatility looks set to remain high for some time.

Fitch upgraded Argentina's local currency rating from CCC to B on Tuesday thanks to an improved policy framework, and predicted it would do the same to the government’s foreign currency rating once the country resumes timely debt service on defaulted bonds.

Raizen Energia, the Brazilian sugar and energy producer, will buy back nearly $200m of debt after bondholders gave a solid response to a tender offer.

Two more Latin America sovereigns could issue bonds soon as borrowers from the region make the most of improved market conditions.

Argentine state oil company YPF sold $1bn of five year notes at a new issue premium close to flat on Friday as the threat of an imminent flood of supply from Argentina did nothing to quell demand.

Real estate company IRSA CP this week became the latest Argentine issuer to raise debt in the international markets as bankers continue to work behind the scenes on the sovereign’s forthcoming return to markets.

The timing of Brazil’s return to bond markets last week was looking better by the day this week as the controversy surrounding the appointment and then suspension of former president Luiz Inácio Lula da Silva to Dilma Rousseff’s cabinet brought volatility back to the curve.