South America

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

Argentine infrastructure company Compañía Latinoamericana de Infraestructura & Servicios (Clisa) is meeting fixed income investors ahead of a liability management exercise that highlights the stark improvement in the outlook for Argentine companies this year.

Latin American issuers were flying as high as a Leo Messi penalty this week as the Argentine sovereign capped off a remarkable two days of new issue activity for the region with a $2.75bn dual-tranche bond on Thursday, reaffirming the belief that Lat Am would see little or no effect from the Brexit vote.

The Dominican Republic and Brazilian meatpacker Marfrig jumped on favourable technicals in Latin American bond markets this week to tap, above par, bonds issued earlier this year.

Brazilian meatpacker Marfrig clinched a drive-by bond reopening on Wednesday to notch up another success in its proactive liability management programme, raising $250m of seven year bonds that it will use to buy back existing debt.

Latin American borrowers rushed to new issue markets en masse on Wednesday to confirm the thesis that Brexit would have little or no effect on the region, with four issuers pricing bonds and several more likely to do so imminently.

The Republic of Argentina on Thursday made an unexpected second visit to bond markets this year to raise $2.75bn, but some investors said that anyone surprised that the sovereign had issued more debt should be comforted by the use of proceeds.

Argentine corporate Arcor sold what some bankers described as the star deal of the day on a busy Wednesday in the Lat Am new issue market. Both the confectionary company and fellow Argentine borrower Salta raised $350m of seven year money.

Refinancing risk for non-financial corporate bonds remains “high”, said Fitch on Tuesday, pointing out that more than $30bn of Latin American non-financial corporate bonds will mature in the next 18 months.

Brazilian state owned lender Banco do Brasil will buy back 12.5% of its 9.25% perpetual bonds after a tender offer was oversubscribed during the early bird phase.