Latin America

Peruvian generation company to repurchase $145m of 2027s

Natural gas liquefaction plant hit by stoppages

With the bond market monitoring Argentina’s progress in negotiating a deal with the IMF, the country’s economy ministry has promoted from within to replace its outgoing finance secretary.

Even after a hefty slump in its bond prices in recent weeks, investors are failing to see value in El Salvador as doubts grow around a much-needed IMF programme. Some believe there could be further downside - despite Bank of America taking a positive view on the country in a report that was enthusiastically publicised by president Nayibe Bukele.

The Province of Buenos Aires has extended the participation deadline for its proposed restructuring for the 21st time — dashing the hopes of some analysts who had thought the deal could be wrapped by the previous target of August 13, even though the issuer’s largest bondholder has backed the deal.

The Emerging Markets Investor Alliance, a non-profit comprising several major EM asset managers, will release “enhanced” principles for green, social, sustainable and sustainability-linked bonds on Thursday in response to what it sees as a “loss of confidence” in the labelled bond asset class.

Deutsche Bank has hired from ING to replace a recent departure in its Latin American debt capital markets team, and the German bank’s head of LatAm DCM told GlobalCapital that he hoped to build around the new hire.

Panama City airport Aeropuerto Internacional de Tocumen defied what bankers and investors had described as an unenthusiastic early-August bond market to attract a large book on a dual tranche deal on Thursday. Demand was sticky enough for the issuer to price $1.855bn of new debt inside guidance, enabling Tocumen to gain important liquidity relief.

The impact of the allocation of new IMF Special Drawing Rights (SDRs) on the most stressed developing economies could depend on whether a politically sensitive proposed reallocation of the assets from wealthier nations to vulnerable ones is successful. And though the new SDRs may reduce sovereign bond issuance, particularly in sub-Saharan Africa, not all investors believe there will be a notable effect on EM debt.

Mining company Gran Colombia Gold Corp sold a senior unsecured $300m five year note on Wednesday, with bankers saying that the company had offered a pricing pick-up that could be attributed to the use of proceeds — to fund a new project in Guyana.

Power company Genneia has become the latest Argentine company to look to refinance bonds with an exchange considered distressed by rating agencies, as capital controls in the country limit corporate issuers’ access to hard currency. Unusually, the distressed exchange will result in the issuance of green bonds.

Andrés Pérez, who has led Chile through two consecutive record breaking years of international bond issuance, has left his position as head of international finance at the Latin American sovereign to become chief economist at Itaú Chile.