South America

Brazilian meatpacker JBS will look to continue on the road to recovery with a proposed benchmark-sized dollar deal next week, having received a ratings lift from S&P Global Ratings on Thursday.

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.

Borrowers from Latin America are flocking to meet bond investors despite market conditions softening over the past week.

Emerging market bond investors were as quick to highlight medium-term challenges in Brazil as they were to express relief at the outcome of the first round of Sunday’s presidential election, though DCM bankers highlighted improved prospects for primary markets.

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.

Turkey is braced for one of the most important political events of what has been a turbulent year; the hearing of US pastor Andrew Brunson. The consequences could shape Turkey’s recovery from its recession. Elsewhere, a Russian mining company's loan showed the country is not quite closed for business, and after weeks of quiet, Latin American markets have bounced into life.

Bond market analysts and investors warned that post-election market euphoria in Brazil could fade quickly even if right-wing populist Jair Bolsonaro, who has outlined a market-friendly economic plan, wins in the second round as seems likely.

The spread on Colombia’s $2bn new issue hung in close to reoffer levels on Thursday as the speed of the US Treasury sell-off spooked some EM investors, just as it seemed the asset class was returning to form.

Coca Cola’s Chile-based bottling business Embotelladora Andina (Andina) is planning to replace international debt with domestic bonds, after wrapping up a tender offer for its old 2023s.

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.

Maybe it was the euphoria of seeing three potential Lat Am borrowers hit the screens on one day after three arid months but DCM bankers heaped praise on Colombia’s dual tranche bond deal on Wednesday as it tapped international markets for the first time in over a year.