Latin America

Latin American power generation company EnfraGen debuted in the international bond markets on Wednesday, benefiting from the strong performance from the region’s last power sector issue to price inside where some investors were expecting — despite a leverage ratio of nine times.

UEP Penonomé, the company behind Panama’s first wind farm, turned to bond markets for the first time on Wednesday for a $262.664m senior secured amortising bond.

Colombia’s finance ministry said on Wednesday evening that it had taken the “first step to entering the bond market for sustainable development” after Congress approved the issue of thematic bonds.

The Dominican Republic refinanced the bulk of its 2021 bond maturities on Monday with a tap of its 12 year bonds that took international issuance from Latin American sovereigns to record annual volumes.

Paraguayan beef exporter Frigorífico Concepción held calls with bond investors on Monday as it looks to tap its only international bond for the second time.

Chilean government-owned copper producer Corporación Nacional del Cobre de Chile (Chile) became the latest Latin American borrower to take advantage of rock-bottom bond yields to refinance existing debt at historically low yields.

Bondholders overwhelmingly backed Suriname’s request for a debt standstill until at least the end of March, allowing the government to exit default. The sovereign is likely to use the payment holiday to begin negotiating a comprehensive debt restructuring.

Standard & Poor’s cut Braskem Idesa’s credit rating from B+ to B on Friday, placing the rating on negative watch as the Mexican government’s termination of a gas transportation contract disrupted the polyethylene producer’s operations. The rating agency warned the company needs to address its gas supply shortage urgently, but some credit analysts eye a buying opportunity.

Latin American power generation company EnfraGen will look to sell $710m of split-rated 10 year senior secured notes this week, nearly three years after it postponed an earlier attempt at tapping bond markets.

Latin America primary enjoyed a rare bustling start to December this week with three deals catching the eye for different reasons, despite several market participants saying they were ready for a calmer end to the year.

Argentina’s second largest provincial issuer, Córdoba, improved its consent solicitation to bondholders on Thursday, increasing proposed coupon payments. The offer comes as Argentine provincial debt talks gain momentum, but Córdoba is still some way off its bondholder group’s latest proposal — though the creditor committee has not yet reacted to the improved offer.

The Commonwealth of the Bahamas raised $225m of 12 year money on Wednesday, taking advantage of a strong rally in its most recently issued bonds to tap markets 125bp inside where it did less than two months ago.