South America

Brazil followed Mexico’s example in making the most of idyllic issuance conditions on Tuesday, though some investors argued that Brazil’s $3bn deal demonstrated that the market retained some sense of discipline.

Brazil’s Braskem could become the third Latin America chemicals company in two weeks to issue internationally as it meets fixed income investors on Monday and Tuesday.

One rare and one debut issuer from Latin America are meeting bond investors as bankers say that a quieter couple of weeks of activity is no indication of a slow end to the year.

Petrobras’s latest new issues gradually recovered ground in secondary markets this week as the overhang effect from a huge exchange offer began to wear off.

Chilean credit union Cooperativa del Personal de la Universidad de Chile (Coopeuch) joins the ranks of Chilean borrowers welcomed into the Swiss franc bond market. Thursday’s outing further illustrates that the love affair of the Chilean borrower and Swiss buyer not only endures but burns brightly.

Colombia’s largest bank will begin meeting bond investors next week as it looks to raise up to $1bn of dollar-denominated 10 year tier two notes to fund a tender offer for existing bonds.

Both of Brazilian oil giant Petrobras’s new bonds issued last Monday will jump to jumbo size after the response to the company’s exchange offer surpassed the expectations of many market participants.

Brazilian water and sewage company Aegea Saneamento e Participações is looking to raise $400m via its debut international bond issuance, according to rating agency reports.

Nearly 95% of holders of Latin America oil and gas company GeoPark’s $300m of bonds due 2020 agreed to sell their paper as part of tender offer, the issuer said on Thursday evening.

Brazilian oil giant Petrobras appeared to have timed its return to bond markets to perfection on Monday, but an underwhelming secondary market performance left some investors disappointed.

Argentine finance minister Luis Caputo said that Argentina would issue two further international bonds in 2017 although it will likely avoid the dollar market, where it has raised over $9.5bn of funding so far this year.

Mexican cement company Cemex and Chilean electricity name Colbún both launched tender offers of existing bonds this week, planning to buy back old notes with cash.