South America

Latin American DCM bankers say that continued debt buy-backs by Brazilian companies are creating strong technicals that should put the market in good stead for next year.

South American development bank Corporación Andina de Fomento (CAF) sold its first public dollar deal in a year on Thursday, raising $750m despite tough market conditions.

Colombo-Canadian oil and gas company Frontera Energy’s attempt to grant itself the power to make larger payments to shareholders is an aggressive move, said bankers as Fitch highlighted it would be a credit negative.

South American development bank Corporación Andina de Fomento (CAF) is due to price to a first public dollar deal in a year on Thursday, having set price talk on Wednesday.

Colombo-Canadian oil and gas company Frontera Energy’s attempt to grant itself the power to make larger payments to shareholders is an aggressive move, said bankers as Fitch highlighted it would be a credit negative.

Just over 100 days since Ivan Duque took office as Colombia’s president, the South American country has appointed a new head of public credit and national treasury.

Frontera Energy Corporation, the Canada-listed Colombian oil and gas company, is asking bondholders permission to make payments otherwise forbidden by the terms of its outstanding debt.

Brazilian mining giant Vale has launched its third public tender offer for outstanding international bonds, seeking to continue to cut its debt by buying back $1bn of notes.

Despite volatile market conditions, which usually make local currency issuance a tough sell, some bond investors say they have their eyes peeled for a Peruvian government nuevo sol trade after the sovereign completed a buy-back of dollar debt on Tuesday.

Pulp and paper producer Suzano Papel e Celulose raised $500m of 30 year debt on Tuesday, two months after first mooting the idea, putting it closer to completing the financing of its takeover of fellow Brazilian company Fibria.

A pair of rare euro bonds from sovereign emerging markets borrowers hit the market this week, much to the approval of investors who said the deals provided “good value”.

Despite volatile market conditions that usually make local currency issuance a tough sell, some bond investors say they have their eyes peeled for a Peruvian nuevo sol trade after the sovereign completed the buy-back of dollar debt on Tuesday.