Peru

The Republic of Peru may not have yet announced the dual-tranche dollar and nuevo sol trade that it is understood to be planning, but the sovereign opted this week to get going with liability management anyway.

Turkey made a successful return to international markets on Tuesday after six months away. The sovereign paid up for the privilege, but took an important step in returning financing conditions in the country to normal.

Thursday’s activity in Latin America bonds showed that issuer expectations, as much as investor appetite, could define how the year ends, with one borrower standing down and another pushing through volatility.

Peru wrapped up an investor roadshow on Wednesday just as the Dow Jones suffered its worst day since February to leave investors and bankers examining conditions as the sovereign weighs up a dual-tranche dollar and Nuevo sol deal.

Colombia reopened Lat Am bond markets on Wednesday but Peru is likely to provide a greater test as it meets investors ahead of a proposed nuevo sol and dollar-denominated dual tranche deal.

On the day that Colombia reopened the international bond market for Latin American sovereigns after an almost three month hiatus, Peru announced investor meetings ahead of a proposed nuevo sol and dollar-denominated issuance.

Gas Natural de Lima y Callao, the largest gas distribution company in Peru, has received its second rating upgrade of the year after Moody’s pushed the borrower up by one notch to Baa2.

Hunt Oil Company of Peru on Thursday sold the largest dollar-denominated bond deal from a Latin American issuer this month. Syndicate bankers took the deal as a positive even though investors said the issuer had been generous with pricing.

Latin America syndicate bankers are dreading a moribund primary bond market this week despite the fact there are borrowers interested in issuing.

Peruvian agricultural company Camposol cancelled a proposed tender offer for existing bonds on Monday evening after failing to raise the debt required to finance the buyback.

Camposol has launched a tender offer for its 10.5% 2021s for the second time this year, as the Peruvian agricultural company looks to revive a new bond sale.

Peruvian drugstore operator InRetail Pharma and Brazilian electricity company Light both sold new deals tighter than where some investors would have liked on Wednesday to show that issuers had at least some pricing power.