South America

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.

The state bank of Chile is bookbuilding a return to the Swiss franc bond market.

A rally in Brazilian dollar bonds slowed but did not reverse this week after right-wing Jair Bolsonaro eased to victory in last Sunday’s presidential election.

Brazilian meatpacker Minerva will make a second attempt this year to buy back its outstanding perpetual bonds after announcing a tender offer on Thursday.

Chilean state-owned oil company Enap (Empresa Nacional de Petróleo) showed Lat Am credits can still raise bond funding on Tuesday, though its latest deal is unlikely to have borrowers racing to markets.

Chilean state-owned oil company Enap (Empresa Nacional de Petróleo) raised $680m of amortising 11 year notes on Tuesday in a drive-by trade that showed Lat Am borrowers are still willing to battle tough conditions to get funding done.

Brazilian bonds were only slightly up on Monday morning after right-wing Jair Bolsonaro’s victory in Sunday’s presidential election was deemed to be mostly priced in. And analysts looking beyond the promise of market-friendly policies said that the president-elect’s polarising views could make much-needed fiscal reforms difficult.

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.

Latin American financial institutions are continuing to find attractive opportunities in niche markets this week, though the best rated of them all told GlobalCapital it could turn to public bond markets soon.

Emerging market bond investors are pessimistic about the chances of more Latin American deals appearing this week as market conditions grow more difficult.

Chilean savings and loans co-operative Coopeuch has diversified further its sources of funding by becoming the first triple-B rated borrower from Chile to issue in Asian bond markets.

Venezuelan state-owned oil giant PDVSA is likely to make a principal payment on its amortising 2020s due later this week as all evidence suggests the company is desperate to keep hold of the US refinery that serves as collateral for the bond, according to Torino Capital.