South America

Argentine province Neuquén began meeting fixed income investors on Monday as it looks to issue a second international bond in two years.

A glimpse of the future has arrived with the publication of a report modelling the credit risk banks face from drought. The effect on loan portfolios could be severe — and the research illustrates the new kinds of risk management banks will have to do as the world’s climate becomes more volatile.

No Latin American borrowers tapped international bond markets this week as most of the region takes an extended break for Easter, but Argentina is once again providing most of the excitement.

Pampa Energía, the fast growing Argentine energy company, is looking to sell $500m of convertible bonds in an extremely rare structure for a Latin American issuer.

Less than a month after it removed the negative outlook on Brazil’s Ba2 rating, Moody’s has edged state-owned oil giant Petrobras closer to the double-B territory it occupies with other rating agencies.

Brazilian energy company Petrobras has kicked off global syndication for a $1bn facility, which it is borrowing through its overseas arm Petrobras Netherlands.

After a glut of provincial supply, investors were treated to a debut Argentine corporate this week, as three other Latin American corporates brought deals.

Argentinian supply resumed on Wednesday as Tarjeta Naranja and Province of Tierra del Fuego both kicked off pricing on new dollar deals.

Further dollar issuance from Argentina could emerge as early as today after two borrowers from the country wrapped up roadshows on Tuesday.

Argentina’s second smallest province is readying a dollar denominated bond, looking to become the 13th sub-sovereign authority to issue since the government exited default a year ago.

The largest McDonald’s franchise operator in the world attracted a super-sized $2bn of demand for a deal of just $265m on Thursday as investors said the allocation bun fight left them wanting more Big Mac bonds.

Chilean-Brazilian Latam Airlines is likely to be at the centre of a rush of corporate bond supply from Latin America next week after Standard & Poor’s praised the company’s cost-cutting efforts.