Latin America

Brazilian airline Gol on Thursday sold the first public bond deal from a Latin American airline since the coronavirus pandemic began, increasing the size of a tap of its 8% 2026s as hopes grow that the vaccine rollout will accelerate in the region and enable the worst affected industries to recover.

Chile raised $2bn in dollar markets on its fourth international bond market outing of the year on Tuesday, achieving slim new issue concessions even as volatility in domestic markets is leading the sovereign to lean more heavily on external funding sources.

A committee of Belize’s largest bondholders said on Wednesday that there was a “lack of transparency” in the country’s debt restructuring proposal, claiming that Belize failed to address several creditor concerns during confidential negotiations. The committee said bondholders should not bear the costs if Belize decides to reject an IMF programme.

AI Candelaria, the holding company through which private investors own a stake in Colombian oil pipeline Ocensa, is looking to issue senior secured bonds in the coming days as bankers say a sell-off in Colombian bonds remains relatively small despite major social unrest.

Banco General’s additional tier one debut on Tuesday came with a slimmer spread to its senior curve than similar instruments from Latin American banks, said bankers, as the Panamanian lender printed $400m of perpetual non-call 10 subordinated notes.

The Republic of Chile, until recently a rare issuer in international bond markets, sold its fourth cross-border bond of 2021 on Tuesday, becoming the fourth Latin America sovereign of the year to take advantage of a more liquid 20 year US Treasury to price a benchmark at that maturity.

Mexican industrial parks operator Corporación Inmobiliaria Vesta began investor calls on Monday as it looks to become the latest Latin American issuer to join the sustainability-linked bond (SLB) club. Though bankers continue to see LatAm companies obtaining pricing benefits from SLBs, a handful of recent deals are trading below re-offer in secondary.

Gol, Brazil’s largest airline, is looking to reopen a private placement sold in December with the aim of making it a public benchmark this week. As it looks to double the size of the 8% June 2026 bond from $200m to $400m, Gol told investors at its roadshow presentation that it expected the yield on the tap to be around 8%.

Latin America’s sustainability-linked bond (SLB) market is taking on a life of its own as issuers warm to the structure and tailor it to their own needs. Brazilian cosmetics company Natura was one such company to do just that this week, veering away from the standard 25bp coupon step-up on its SLB debut.

Brazilian cement maker Votorantim Cimentos’ CFO said that the company would prioritise sustainability-linked structures in its future fundraising, after it sold a domestic SLB in March that used linked the call price — rather than the coupon — to key performance indicators (KPIs).

Colombia’s sovereign bonds continue to trade wider as the government faces fierce opposition to a tax reform designed to salvage its investment grade rating. As protestors flocked to the streets on Wednesday to oppose the bill, which is being debated in Congress, the deputy finance minister said that the final version of the reform may not be as positive for government revenues as the initial version.

The world’s largest wheel manufacturer, Iochpe-Maxion, on Tuesday became the fourth Latin American issuer in four business days to issue a sustainability-linked bond (SLB). The Brazilian issuer sold a $400m seven year deal with an apparently more ambitious greenhouse gas emissions reduction target than the one set by Mexican car parts supplier Metalsa on its own SLB last week.