South America

New issue markets in Latin America took a pause this week, but DCM bankers covering the region were not overly concerned as recent deals issued amid the volatility began to gain ground.

Two Latin American companies on the path to recovery from precarious situations have found themselves somewhat stuck in their liability management efforts because of tougher conditions in new issue markets.

Peruvian agricultural company Camposol has cancelled a tender offer for existing notes after market conditions led it to delay a new bond sale, but Lat Am bankers are not overly pessimistic about prospects for primary markets.

Aluar, the Argentine aluminium producer, will look into the possibility of issuing local or international debt after the company’s board of directors approved a $300m bond shelf.

Brazilian steel producer CSN (Companhia Siderúrgica Nacional) has more than halved the size of a planned tender offer after completing a smaller than intended bond issue last week amid market volatility.

Four Latin American issuers ventured into cross-border markets on Thursday after a deceptively calm Wednesday, only to be faced with a wave of volatility that had investors worried and led to wider pricing.

Bond market participants said on Wednesday said that Latin American issuers could return in force on Thursday after another day of calm in markets.

Bankers observing South American development bank CAF’s return to euro markets on Tuesday suggested that the multilateral had done well to push through equity market volatility with its largest ever euro deal.

Chilean company Prime Energía is looking to raise $575m of seven year bonds via a debut deal to be issued in conjunction with another company owned by the same group.

South American development bank Corporación Andina de Fomento (CAF) is due to price its first benchmark of 2018 after announcing initial price thoughts for a euro-denominated seven year.

Peruvian agricultural company Camposol could return to bond markets this week as it looks to capitalise on an improved rating to refinance expensive debt issued during darker days.

Canada-listed oil and gas company Gran Tierra Energy, which has the majority of its operations in Colombia, is planning a debut 144A/Reg S bond offering which will come due in 2025, the company said.