Latin America

A group of bondholders holding more than a quarter of the Province of Neuquén’s senior secured bonds said on Friday that they “categorically” reject the Argentine regional government’s restructuring proposal.

Central American sovereign Belize said this week that more than three-quarters of its bondholders supported its proposal to capitalise its next three bond payments. The Covid-19 pandemic is battering the country’s tourism-reliant economy.

Two Latin American corporates sold dollar bonds this week, but market participants said August is mostly as quiet as expected, as focus turns to potential September supply.

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.

Entre Ríos will become the latest Argentine province to begin negotiations with bondholders after the national government’s restructuring agreement last week left the path clearer for provincial issuers.

Chilean state railway operator Empresa de los Ferrocarriles del Estado (EFE) debuted in international bond markets on Tuesday, achieving the lowest yield ever achieved by a Latin American corporate on a 30 year issue on the back of an eight times oversubscribed order book.

Bermuda could issue a new bond in the coming days as it looks to fund the buy-back of up to $500m of debt.

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.