Latin America

Struggling Brazilian telco Oi received a welcome lift in the eyes of its bondholders on Monday after a Russian investment group proposed to invest in the company if it merges with rival Tim.

Peruvian sugar cane producer Corporación Azucarera del Perú (Coazucar) has given bondholders more time to commit to its tender offer as it looks to cut its exposure to the dollar.

Latin America development bank Corporación Andina de Fomento (CAF) has picked leads for a euro transaction and will hold investor calls this week.

Mauricio Macri, the conservative mayor of Buenos Aires, outperformed expectations on Sunday’s presidential elections in Argentina, meaning bond markets may receive a fillip on Monday morning.

Sovereigns and quasi-sovereigns continue to dominate Latin America new issues, as Uruguay this week showed that attractive all-in funding costs are on offer thanks in large part to low base rates.

DCM bankers hope that Mexican lender Nafin’s planned green bond could be the first of many from the country, and that other development banks in Latin America will follow Mexico’s model.

The prospect of interest rates in Europe remaining low for a long time means that Uruguay is not likely to raise euro-denominated debt “in the very short term”, said a debt official from the country, but the sovereign is looking at the market as a way to continue to diversify its investor base.

A struggling nuevo sol is turning Peru’s companies rapidly away from international bond markets as the issuer of the tightest Peruvian corporate bond ever looks to rid itself of all dollar exposure.

Government-owned development bank Nacional Financiera (Nafin) is plotting what would be the first ever green bond from Mexico and — unlike the previous two such bonds from LatAm — will be ringfencing the proceeds.

Uruguay sent a sign that broad volatility in emerging markets would not put Latin American sovereigns off the new issue market with a $1.7bn amortising 12 year deal that it will use to buy back old bonds.

Peru looked set to test the euro market for the first time in more than a decade after announcing plans for an extensive European roadshow.

Peru will meet investors in Europe next week ahead of a potential return to the euro bond market for the first time in more than a decade.