Latin America

Real money investors have historically avoided the reputational risk involved in participating in sovereign debt restructurings. But a truly socially responsible investor should embrace these situations — for the sake of both their clients and troubled emerging nations.

Electricity giant AES Corporation raised $1.38bn of bonds for its Panamanian subsidiary on Tuesday, attracting a bumper book into a note that could offer liquidity rarely found in corporate paper from the country.

Latin American development bank Corporación Andina de Fomento (CAF) raised Sfr350m ($382m) of five year paper on Monday with its first green bond issue in the Swiss franc market.

Argentine oil and gas company Compañía General de Combustibles (CGC) is looking to tackle a looming bond maturity with an exchange offer, following the example of YPF and Telecom Argentina.

Latin American multilateral lender Corporación Andina de Fomento (CAF) could tap Swiss franc bond markets this week after mandating for a green bond.

Empresa de los Ferrocarriles del Estado (EFE), the only operator of long distance passenger railways in Chile, is looking to debut in international bond markets with a 10 or 30 year bond of up to $500m.

The unprecedented central role real money investors played in debt talks with Argentina and Ecuador could change the nature of sovereign restructuring, experts said, after the two countries this week reached agreements with creditors over billions of dollars of bonds. Oliver West and Ross Lancaster report.

The first ever international bond issued by government-owned lender Banco Nacional de Panamá (Banconal) performed well on the break this week as investors said the deal offered a healthy pick-up to the sovereign curve.

Several corporate issuers in Latin America could be on the cusp of losing their investment grade status, warned Fitch Ratings on Wednesday, with commodities-related businesses at particular risk.

Telecom Argentina said on Tuesday that it would issue nearly $389m of amortising bonds maturing in 2025 as a result of a successful debt exchange and raising $135m in new money.

Government owned lender Banco Nacional de Panamá (Banconal) sold its first ever international bond on Tuesday, notching a bumper order book and at tightening — as several recent Latin American deals have done — by 50bp.

As Argentina’s largest bondholders confirmed that they would support the government’s amended restructuring offer, the sovereign gave investors until August 24 to participate in the deal, with analysts expecting a high take-up.