South America

Potential first-time issuer the Province of Jujuy could become the second Argentine green bond issuer after mandating two banks for a fixed income investor roadshow.

Pulp and paper producer Suzano Papel e Celulose reopened its 10 and 30 year bonds to the tune of $400m in total on Tuesday, sneaking into the market with a drive-by trade ahead of a long line of Latin America issuers that are meeting investors this week.

Empresa Nacional del Petróleo (Enap), the state-owned Chilean oil company, is looking to issue its first bond in a year shortly after escaping negative rating actions despite several downgrades to the sovereign’s rating.

Rodrigo Valdés, who was finance minister of Chile since May 2015, has resigned from his post over policy differences with the government.

Two Latin American companies announced roadshows this week as the new issue markets finally gave an indication that banker predictions of a hectic September could come true.

Prices in Venezuela and PDVSA bonds remained stable in the secondary markets this week, despite US sanctions on new debt issuance, as bondholders appear none the wiser as to the next step in the country’s economic crisis.

Brazilian mining giant Vale is looking to make the most of a better than expected cash position to redeem its 5.625% 2019s and buy back 4.625% 2020s through a tender offer.

Fitch downgraded Venezuela by three notches on Wednesday, saying that the imposition of US government sanctions on the country further reduced its financing options.

Peruvian plastic packaging company San Miguel Industrias is looking to issue new debt to refinance its only existing international bonds, which mature in 2020.

Bonds issued by Venezuela and its state-owned oil company PDVSA recovered ground after US president Donald Trump issued an executive order prohibiting the trading of new debt issued by the entities.

Brazilian mining giant Vale looks set to continue to reduce its debt by redeeming its 5.625% 2019s and via a tender offer of its 4.625% 2020s.

Venezuela’s bond market access is already negligible. If market participants want to take a moral position, they need to think about more than just new issues.