South America

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.

Turkish and Argentine assets have been battered over the past few months, but one investor believes that both countries can provide good value and is expanding its exposure.

Coca Cola’s Chile-based bottling business wrapped up meetings with local investors on Friday as it planned to replace international debt with domestic bonds.

Yields on Argentina’s dollar-denominated debt hit their tightest levels since early August on Thursday after the IMF increased the size of its financing package from $50bn to $57.1bn.

The IMF and Argentina’s announcement of a new improved financing package came after markets closed on Wednesday, but bond investors say it can be positive for the country's sovereign bonds.

Argentina’s bond rally may not have much further to run even if the country does clinch a larger deal with the IMF, as investors turn their focus to president Mauricio Macri’s challenge in retaining popularity.

Any bond market activity from Brazilian issuers before October’s elections will be focused on liability management, said DCM bankers after Braskem announced it would be redeeming some of its perpetual notes.

Brazilian pulp and paper producer Suzano Papel e Celulose’s CFO told GlobalCapital that he believes the company would have had to pay a higher rate on its latest dollar bond had it chosen to issue immediately after its roadshow.

Brazilian pulp and paper producer Suzano Papel e Celulose’s CFO told GlobalCapital that he believes the company would have had to pay a higher rate on its latest dollar bond had it chosen to issue immediately after its roadshow.