Latin America

Latin American bond bankers said that Mexican telecoms company Total Play Comunicaciones’ debut bond issue on Monday — the second Mexican high yield deal since the onset of Covid-19 — was an encouraging sign for other issuers from the country.

Argentina’s second largest city, Córdoba, said on Wednesday that holders of 83.79% of its bonds had agreed to its consent solicitation — enough to trigger the collective action clause and enable the issuer to restructure the entire $150m note.

The Central American Bank for Economic Integration (Cabei) said it became the first multilateral lender to sell a Covid-19 “vaccine bond” after raising $50m of five-year money to support immunisation initiatives when Covid-19 vaccine becomes available.

Though the bond market reaction to the impeachment of Peru’s popular president was not as severe as it would have been in most Latin American countries, investors said that political volatility would continue to challenge the sovereign’s credit profile and that the situation presented risks for next year’s elections.

Brazilian steel producer Companhia Siderúrgica Nacional (CSN) took advantage of a vacant Latin American primary market to add $300m to its 2028s on Tuesday, as bankers say several of the region’s big names are still preparing to take advantage of strong conditions after the US elections.

Latin American bond bankers said that B2/BB- rated Mexican telecoms company Total Play Comunicaciones was the ideal name to take advantage of a swell of risk appetite on Monday as the company sold its first ever international bond in a market that favoured higher yielding credits amid the sell-off in US Treasuries. But Lat Am sovereigns could be back as soon as Tuesday as bankers expect a wave of issuance from the region.

The Province of Buenos Aires extended the deadline on its restructuring proposal for the ninth time on Monday — again without modifying the terms. But with bondholders saying they are considering “all options” after hiring legal advisors last week, the provincial government says it is willing to improve its offer and called on creditors to resurrect negotiations.

Bond investors are again clashing with an Argentine government issuer over restructuring terms, with the Province of Córdoba’s consent solicitation turned down on Sunday evening just two days after launch. However, Córdoba’s creditors published a counterproposal that is considerably more friendly to the province than a previous proposal.

Panamanian toll road operator Empresas Nacional de Autopistas (Ena) and Peruvian healthcare provider Auna began investor calls on Friday as Latin American issuers wasted no time returning to market after last week’s presidential election in the US.

Chile published its first sustainable bond framework on Wednesday, saying it wanted to build on the last year’s green bond issues to further diversify its investor base.

Spreads on Latin American bonds tightened sharply during US election vote counts on Wednesday in a promising — if only preliminary — sign for potential issuance conditions after the result is declared.

A group of institutional investors owning a portion of Suriname’s $550m of 2026 bonds and $125m of 2023s has hired Newstate Partners as adviser in anticipation of a request for debt payment relief from the South American country.