South America

The decision from the Argentine province of Salta to wait a few days before returning to bond markets this week (see separate story) did nothing to dampen bankers’ enthusiasm for Argentina as three more borrowers joined the new issue pipeline.

Foreign bondholders in Usiminas, the Brazilian steel company, may yet make it out unscathed after the company reach a debt restructuring agreement with its bank lenders and local bondholders.

Petrobras made clear its desire to buy back as much of its 8.375% notes due 2018 as possible on Wednesday after extending final deadline of a tender offer for the notes for a second time.

A confectionary company and the third largest province in Argentina are set to ensure that the country remains the centre of new issue activity in Latin America.

Argentine pulp and paper company Celulosa Argentina has received approval from its board for a second attempt to issue international debt after the company’s CEO told directors that there would be appetite for new bonds thanks to the “new context” in capital markets.

The Argentine province of Salta will meet bond investors this week as it looks to become the latest in a line of sub-sovereigns from the country to offer international bonds.

Chilean state-owned lender Banco del Estado de Chile’s CFO told GlobalCapital that the issuer would look at issuing more SRI bonds after selling a so-called “women bond” denominated in Japanese yen on Friday.

Eight corporates and one sovereign raised international bonds from Latin America this week as overwhelming technicals, a newly dovish US Fed and fears of post-Brexit trauma led the region’s borrowers to flock to markets.

A bond issued by Argentine pay TV and broadband provider Cablevision was the clear outperformer in a busy week for Latin American new issues as bankers said hunger for Argentine names was as strong as ever.

Brazilian pulp producer Eldorado Brasil Celulose is hoping to become the first debut issuer from the country since November 2014 after announcing initial price thoughts of high 8%.

Mexican real estate investment trust Fibra Uno and Colombian state-owned oil company Ecopetrol reopened existing dollar notes on Wednesday to take advantage of euphoric conditions in Lat Am bond markets.

Pay TV and broadband provider Cablevision sold the first true corporate bond from Argentina since the sovereign exited default in April, raising $500m on the same day the Province of Buenos Aires hit the market for the second time this year.