Latin America

Interchile, the Chilean electricity transmission company owned by Colombian government-controlled conglomerate ISA, began investor calls on Tuesday ahead of a potential green bond issue.

LatAm bond buyers said that MC Brazil Downstream Trading’s debut bond issue on Tuesday had offered a rare chance to pick up yield in large size, as the company’s $1.8bn 10 year was spotted a point and a half higher in the grey market after pricing.

Fibra Soma, a recently created Mexican real estate investment trust (Reit), began meeting fixed income investors on Monday ahead of what would be an inaugural international bond deal.

Compañía de Minas Buenaventura will provide a stern test of appetite for Peruvian risk under new leftist president Pedro Castillo this week as it seeks an inaugural bond issue that it will use to repay a tax liability.

Armando Tamez, CEO of Mexican car parts maker Nemak, told GlobalCapital that the company sees “great potential” in sustainability-linked bonds, adding that it would be “natural” for Nemak to continue to consider issuing SLBs in the future.

After Brazilian pulp and paper producer Suzano became the first Latin American company to issue a second sustainability-linked bond, its treasury director told GlobalCapital he expects investors to differentiate more and more between SLB issuers based on the issuer’s ESG credentials.

Mexican car parts maker Nemak sold its second sustainability-linked bond in a month on Wednesday, raising €500m in a deal that bankers said marked the company’s migration from high yield to investment grade covenants — though it has just one IG rating.

MC Brazil Downstream, a vehicle through which UAE sovereign investment fund Mubadala is acquiring a major refinery from Brazil oil giant Petrobras, is planning to sell $1.8bn of 10 year senior secured notes, according to rating agency reports.

Brazilian meatpacking company Minerva returned to debt markets on Tuesday with a $400m tap of a 10 year bond first issued amid turbulent markets in March. The tap was more easily digested, coming at a calmer moment.

On Tuesday, Mexico sold its second international bond explicitly aligned to the United Nations’ Sustainable Development Goals, printing the 15 year note at the same spread over mid-swaps at which it had sold a seven year SDG bond in September.

Sergio Díaz-Granados, executive director for Colombia at the Inter-American Development Bank (IADB), will become the new executive president of Latin American multilateral lender CAF in September after obtaining more votes than Argentine candidate Christian Asinelli.

Mexican car parts maker Nemak began meetings with European investors on Monday as it looks to become the first Latin America borrower to sell sustainability-linked bonds in more than one currency.