South America

Argentina is returning to the Swiss franc bond market after nearly 20 years, roadshowing a benchmark bond next week. Success or failure will indicate whether Swiss investors have forgiven Argentina for burning their fingers last time they met, writes Silas Brown.

Latin America’s largest economy looks to have halted its three year slide down the ratings scale after Moody’s removed the negative outlook on Brazil’s Ba2 credit rating.

Argentina is returning to the Swiss franc bond market after nearly two decades of absence, roadshowing a benchmark bond next week. Success or failure will indicate whether Swiss investors have forgiven Argentina for burning their fingers last time they met.

This week saw the entry of Kuwait into the capital markets. The sovereign’s long awaited debut received orders of $29bn at peak, proving that demand for the region is as strong as ever. Now Argentina is looking to print a rare Swiss franc deal.

Santa Fe wants to raise a further $250m of senior unsecured bonds, according to investors, in what would be the fifth sale by an Argentine province this year.

Argentine airport operator Aeropuertos Argentina 2000 has bought back all of its remaining 10.75% bonds due 2020, according to a regulatory filing.

Latin America bond investors said that hopes of Bolivia’s new bonds receiving strong support from local buyers allowed the sovereign to print a new deal well inside better rated credits on Monday.

Raghsa, the Argentine real estate company, is likely to price a seven year bond on Wednesday after setting initial price thoughts at 7.5%.

Santander has looked internally to replace its departing head of Latin American debt capital markets, GlobalCapital understands.

Syndicate bankers often joke that Brazil issuing is a sign that it’s time to sell Latin American bonds, and a sell-off indeed began this week just as the sovereign was pricing its latest deal. But market jitters should not distract from an improving picture in the country.

The Brazilian sovereign pounced on the best of this week’s issuance conditions but then saw its bonds widen alongside a broader sell-off in markets later in the week — though this did not deter two companies from the country from issuing.

South American development bank CAF sold its largest ever bond in Australian dollars on Tuesday, pricing a new 10.5 year deal through its existing curve thanks in part to strong demand from Japanese investors.