Latin America

At least 12 Argentine provinces are either deep in restructuring talks with bondholders or are preparing to begin negotiations. But as Argentina’s finance minister Martín Guzmán calls for regional governments to renegotiate their debts in line with the federal government’s sustainability guidelines, investors are unlikely to grant the same level of debt relief they agreed with the sovereign.

Argentina’s foreign law exchange bonds will go free to trade this week and offer early clues as to how markets are likely to value the newly restructured credit, after some promising but inconsistent signs emerged from grey market trading last week.

An IMF agreement that surpassed all expectations triggered a rally in Ecuador’s exchange bonds after they went free to trade this week, although analysts warn that February’s presidential election represents a major event risk.

Three Latin American companies announced plans this week to issue dollar bonds, as market participants say they are expecting Monday to kick off a hectic September in primary markets as issuers look to get ahead of potential US election volatility.

Ex-Barclays banker joins Finsbury to develop equity advisory — Laubjerg hired for natural resources at HSBC — Rousseau leaves Deutsche and joins Citi

Banco Lationamericano de Comercio Exterior (Bladex), the Latin American trade finance bank, began investor calls on Wednesday ahead of its first dollar benchmark in five years.

Brazilian bank Itaú has hired from the Latin American debt capital markets team of a rival bank to replace its outgoing debt syndicate head.

The sustainability-linked bond market is about to get its second deal. Suzano, the Brazilian pulp and paper company, is preparing to bring a deal linked to its carbon emissions intensity, as foreshadowed by GlobalCapital in February.

Bond bankers covering Latin America say that they expect the September 7 Labor Day holiday in the US to herald the resumption of primary supply after only a handful of the region’s issuers tapped markets in August despite very strong conditions.

Martín Guzmán, Argentina’s finance minister, said on Monday that 93.5% of international bondholders had participated in the sovereign’s debt restructuring as he promised to deliver a budget by the middle of the month.

Colombian airline Avianca is confident it will be able to exit bankruptcy soon after the Colombian government said it would provide just over 30% of the new money required in the company’s proposed debtor-in-possession (DIP) financing — much to the shock of some politicians in the country.

Ecuador has passed the final hurdle on its way to completing the restructuring of its $17.4bn of international bonds after reaching an agreement on a new IMF programme.