Latin America

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.

The People’s Bank of China (PBoC) said on Friday that it has appointed the local branch of Industrial and Commercial Bank of China as the renminbi clearing bank for Argentina. The country becomes the second official RMB hub in Latin America, following the footsteps of Chile.

Troubled Brazilian shopping centre owner General Shopping Brasil has launched a heavily discounted tender of its 10% senior perpetual notes in an effort to reduce its dollar debt, although Fitch says that a debt restructuring is “likely to occur in the near future”.

DCM bankers covering Brazil are hopeful that liability management exercises from financial institutions may provide them with something to do in the coming weeks as the new issue market suffers depressed volumes.

Buy and sell side credit traders expressed disappointment on Thursday, after the US Federal Reserve elected to keep interest rates on hold.

Troubled Brazilian shopping centre owner General Shopping Brasil has launched a heavily discounted tender of its 10% senior perpetual notes in an effort to reduce its dollar debt, although Fitch says that a debt restructuring is “likely to occur in the near future”.

The issuer formerly known as Pacific Rubiales fell just one notch away from triple-C status on Wednesday after Moody’s downgraded the borrower by three notches from Ba3 to B3 and kept it on negative outlook.

Banco do Estado do Rio Grande do Sul (Banrisul) has become the third Brazilian lender to launch a tender offer for existing debt as bond prices in the country hit lows.