Latin America

The Argentine province of Neuquén said it would make a second attempt to sell a dollar-denominated bond “when market conditions are more stable and convenient”, after the region’s government did not approve the interest rates that investors were seeking.

An evolution is happening in emerging market issuers’ use of yen funding. For many years, many of them have only been able to issue Samurai bonds by using JBIC’s GATE (Guarantee and Acquisition toward Tokyo market Enhancement) programme, but steadily more of them are stepping up to standalone issuance. At the same time, benchmark borrowers are bringing along less established issuers from the same countries in their wake

With local currency devaluations hurting dollar bond issuers across Latin America, Peruvian sugar cane producer Corporación Azucarera del Perú (Coazucar) has launched a tender offer for up to $165m of international bonds.

Sellside bankers desperate to generate business in a stormy LatAm debt market will have been pleased. For as a lesson for issuers in the benefits of sacrificing a few basis points in the interests of getting a deal done, Colombia’s long 10 year on Monday was as good as they come.

Another torrid week for Brazilian credit had investors predicting the sell-off in the country’s assets had further to run despite some names looking cheap at first glance.

Pemex looks set to return to the Swiss franc market for the first time in three and a half years after announcing plans to meet investors in Switzerland next week.

Pemex looks set to return to the Swiss franc market for the first time in three and a half years after announcing plans to meet investors in Switzerland next week.

Brazilian low-cost airline Gol Linhas Aereas Inteligentes is considering becoming the second Latin American company to issue EETCs (enhanced equipment trust certificates), a type of secured bond that has become fashionable among airline borrowers.

Latin America bankers observing Colombia’s latest bond issue had no complaints about execution but said that the deal was evidence of the higher concessions that the region’s issuers must pay amid EM and commodity-related volatility.

Brazilian telco giant Oi’s bonds dropped up to 14 points before recovering much of the lost ground as the company hired Rothschild to advise it on its debt profile but denied a restructuring was on the cards.

Mexican development bank Banco Nacional de Comercio Exterior (Bancomext) will meet bond investors between Wednesday and Friday as Latin America’s new issue pipeline, deserted for so much of this year, continues to grow.

Mexico-headquartered home appliance company Controladora Mabe received a positive outlook from Standard & Poor’s on Friday afternoon, leaving the issuer close to investment-grade status just as it meets bond investors.