South America

AES Gener, the Chilean utility, wants to buy back up to $200m of bonds using cash in hand, it said on Wednesday, as the company’s commitment to reducing leverage looks set to save its investment-grade rating.

Factors internal and external to the emerging markets are this week combining to stymie new issuance.

A group of investors owning Venezuela sovereign bonds and notes issued by state-owned oil company PDVSA want creditors of the two issuers to be treated equally, as analysts point out that the sovereign debt is outperforming that of the oil company.

Brazilian mining giant Vale has wrapped up a tender offer for its dollar notes due in 2042 after nearly two thirds of bondholders agreed to sell their paper.

UBS is expanding its Latin America debt capital markets team with a hire from a rival house.

Frontera Energy, the Lat Am-focused Canadian oil and gas company, saw its new international bond trade up in the secondary market on Thursday as EM buyers found several justifications for why the deal had been priced relatively cheaply.

Chile will meet bond investors next week ahead of a proposed local currency issue that will be available to offshore buyers.

Standard Chartered bank has hired two people to cover macroeconomics in the Americas.

Colombo-Canadian oil and gas company Frontera Energy has returned to primary markets for the first time since it was called Pacific Rubiales with a five year non-call three trade.

There has been no relief rally in Colombian bonds after right winger Iván Duque eased to victory in Sunday’s presidential elections, as tricky boarder conditions outweigh the positives for the South American country.

Brazilian mining giant Vale has launched its third tender offer of the year, this time targeting the longer part of its dollar curve.

Despite receiving one of the largest IMF bail-out packages in history, Lat Am bankers are sanguine on the outlook for Argentine DCM activity this year. They say this is as much to do with the broader weakness in emerging markets as it is to do with Argentina’s economic recovery.