South America

New deals from Turkey’s Yapi Kredi, Majid Al Futtaim, and Russia’s State Transport Leasing Company this week prove that CEEMEA has finally shaken off any Brexit-related concerns and is now revelling in its apparent ‘safe haven’ status.

Argentine pulp and paper company Celulosa Argentina has announced initial price thoughts of 10% area for a $200m seven year non-call four senior unsecured bond as it eyes a debut cross-border transaction.

Brazilian industrial conglomerate Cosan followed the strategy of its compatriot Petrobras on Monday, tapping recently issued bonds after a strong response to a tender offer.

Latin American DCM bankers are hoping that Transelec’s blow-out bond issue on Thursday will encourage more investment grade issuers from the region to come to market, saying that deal’s success was in part down to the short supply of triple-B corporates in primary markets.

Compañía Latinoamericana de Infraestructura & Servicios (Clisa), the Argentine infrastructure group, will open books on a new seven year bond on Monday, according to a local filing.

Bond market participants said that the warm reception for Chilean utility Transelec’s latest issue on Thursday showed that there was huge pent-up demand for EM high grade corporates in a Lat Am primary market dominated by sub-investment grade Brazil and Argentina.

Bond bankers covering Latin America expect the pipeline to continue to grow even after the region’s year-to-date new issue volumes overtook 2015’s full-year total with almost six months still to run.

More than three-quarters of Brazilian airline Gol’s bondholders decided not to participate in a distressed bond exchange designed to alleviate the company’s debt burden, as a rally in the Brazil’s currency improved the issuer’s prospects.

Argentine lender Banco de Galicia y Buenos Aires will begin meeting investors next week ahead of a proposed Basel III compliant tier two bond issue that would be the first of its kind from the country.

Just 22% of Brazilian airline Gol’s bondholders agreed to a distressed debt exchange after several weeks of discussions, with one credit analyst saying that a rally in the real — and thus an upturn in the issuer’s prospects — meant many investors opted not to accept a haircut on their paper.

Argentine pulp and paper company Celulosa Argentina is getting ready to meet international bond investors ahead of a second attempt to issue cross-border debt, according to a pricing supplement filed on Monday.

Dealers will hold an auction to settle credit default swaps referencing Portugal Telecom International Finance, after the International Swaps and Derivatives Association’s (ISDA's) EMEA Determinations Committee ruled that a bankruptcy credit event had been triggered on the contracts