Peru

Camposol, an agribusiness operating mainly on Peru’s Pacific coast, is asking investors to swap existing 2017 bonds for a new five year deal to buy itself time during a period of tight liquidity.

An assortment of borrowers, debt capital market bankers and rating agency officials gathered in Nassau on Friday to discuss the state of play for Latin American bond issuers.

Not all emerging markets bond bankers may agree with the strategy — with certain deal-hungry New York dealers particularly vociferous in their opposition — but Latin American sovereigns are placing increasing faith in the euro market for their international funding, writes Oliver West.

Latin America sovereigns’ new found fancy for euro denominated bonds has sparked fierce words from syndicate bankers defending and questioning the trend.

Peru opened books on its second euro deal in four months on Tuesday, after announcing an investor call on Monday which caused its secondary curve to widen 20bp.

Peru on Tuesday became the latest Latin American sovereign to issue in euros and more could be on the way as the region’s borrowers look to make their mark in Europe in case dollar markets become more expensive.

Latin American sovereigns’ march back towards European bond markets continued on Tuesday as Peru achieved its lowest ever coupon on an international bond with its long 10 year. But opinion is split on the value of the euro market.

Peru opened books on its first euro transaction in over a decade on Tuesday morning, while other Latin American sovereigns are eyeing deals in the currency.

Peruvian sugar cane producer Corporación Azucarera del Perú (Coazucar) has given bondholders more time to commit to its tender offer as it looks to cut its exposure to the dollar.

A struggling nuevo sol is turning Peru’s companies rapidly away from international bond markets as the issuer of the tightest Peruvian corporate bond ever looks to rid itself of all dollar exposure.

Peru looked set to test the euro market for the first time in more than a decade after announcing plans for an extensive European roadshow.

Peru will meet investors in Europe next week ahead of a potential return to the euro bond market for the first time in more than a decade.