South America

South American sovereign Peru said it is unlikely to return to global depositary notes (GDNs) as a way of attracting international buyers into its local curve after selling its first ever Euroclearable Nuevo sol-denominated bond on Monday.

Bankers close to Colombian non-bank lender Credivalores said that the book on its proposed $300m debut international bond was “building very nicely”, with the issuer likely to print on Thursday, Colombian Independence Day.

Peru’s first ever Euroclearable nuevo sol-denominated bond was bid tighter on Tuesday as the country’s director of financial markets management said he hoped the deal opened doors for the private sector to carry out similar trades.

Colombian non-bank lender Credivalores will wrap up investor meetings on Wednesday ahead of a planned five year bond that could come with a 9% handle, said investors.

Lat Am bond market participants agreed that Argentine state-owned oil company YPF had achieved a tight return to dollar markets on Tuesday as it printed $750m of July 2027 bonds.

JSL, the Brazilian logistics company that has been able to improve its cash flow generation despite Brazil’s worst ever recession, raised $325m of bonds due 2024 on Wednesday on its international bond debut.

Questions have arisen, after S&P dumped Chile’s banks’ double-A ratings, as to whether this marks the end of the affair with the country for Swiss investors too. With two banks slashed to single-A, Swiss Bond Index rules could stunt the blossoming relationship between Swiss investors and Chilean FIG debt.

Peru’s efforts to make its domestic bond curve Euroclearable appeared to pay dividends on Monday after 70% of demand for its first deal in the format came from non-Latin American investors.

Latin America’s best-rated sovereign, Chile, has slipped a notch with Standard & Poor’s as the rating agency said the country’s vulnerability to external shocks had increased.

Chilean retailer Cencosud’s new 10 year bond drifted wider in secondary markets on Thursday after bankers placed its new issue premium in the single digits.

Bond investors expect Peru to be able to successfully issue in nuevo soles next week as it wraps up investor meetings ahead of a planned Euroclearable local currency deal.

Argentina’s largest province raised €500m of euro-denominated bonds on Thursday after hefty tightening from initial price thoughts.