South America

Latin American borrowers appeared willing to brave weaker markets this week as three issuers announced deals — though only two had been priced by Thursday’s close.

Brazilian mining giant Vale is set to continue its rapid deleveraging process with a tender offer for up to $1.75bn of two bonds maturing in 2021 and 2022 and the redemption of all of its 2020s.

Brazil’s largest private sector lender Banco Itaú was unable to tighten pricing from initial price thoughts on its return to bond markets on Monday as investors remain hesitant to add risk in choppy markets.

Brazilian mining giant Vale is continuing its liability management efforts, with a tender offer for up to $1.75bn of two bonds maturing in 2021 and 2022, having already decided to exercise its right to redeem all of its 2020s.

Petrochemicals company Unigel has set initial price thoughts of 8% for its planned seven year international bond debut. The deal may provide the best indicator yet of how market appetite for Lat Am credit was affected by February’s volatility.

Brazil’s largest private sector lender Banco Itaú sold $750m of additional tier one notes on Monday, just three months after its most recent issuance in the format.

The largest dairy company in Argentina is looking at calling its existing 2021s in July after filing a new debt shelf, according to market sources in Buenos Aires.

Unigel, the Brazilian petrochemicals company, became the first Latin American corporate name to announce deal plans since early February, and bankers say this will provide a far tougher test of market sentiment than Paraguay's deal.

Land-locked sovereign Paraguay sold the first cross-border bond from a Latin American issuer in exactly a month on Thursday, but though bankers said the deal was positive for the market, they did not think the slim concession was a sign of things to come.

Brazilian energy company Petrobras has tapped the loan market for a $4.35bn revolving credit facility from 17 banks.

Paraguay wrapped up two days of investor meetings on Wednesday, and the South American sovereign will have New York bond syndicate desks wishing it the best of luck if it announces a new deal on Thursday — as expected.

One of the Venezuela analysts most keenly followed by the country’s bondholders will lead opposition candidate Henri Falcón’s economic team in the run up to this year’s presidential elections, which the largest opposition party is boycotting.