South America

Lat Am DCM bankers had held hopes that FDN itself would tap international bond markets this year, but with the proceeds from the sale of state energy company Isagen set to be used to provide the development bank with nearly $1bn of regulatory capital, these plans have been postponed.

The CEO of the Colombian development bank in charge of leading financing for the country’s flagship 4G infrastructure programme told GlobalCapital he was upbeat about progress as he revealed a second international bond related to the programme was in the works.

The province of Mendoza was heard to have built a twice subscribed order book the day before pricing an eight year amortising bond that would make it the second Argentine issuer to have tapped international investors since the sovereign returned to the market in April.

Kallpa Generación, the Peruvian power generation company, will begin investor meetings today ahead of a potential debut dollar bond in what would be the first non-sovereign Peruvian new issue of 2016.

Banco Hipotecario, the mortgage lender 58.4% owned by the Argentine government, is looking to raise between $100m-$200m via a tap of its 9.75% 2020 notes sold last November.

EIG Global Energy Partners is unlikely to succeed in its second bid to acquire Colombian-Canadian oil firm Pacific Exploration & Production, according to bondholders that have already signed up to a restructuring with private equity firm Catalyst Capital.

Banco de Bogotá’s new subordinated bonds closed higher in the grey market on Monday after the Colombian bank offered a hefty new issue premium that left investors who liked the issuer chuffed at the fact the deal had come on a tough day.

Gol Linhas Aéreas Inteligentes, the Brazilian low cost airline, insisted on Friday that its proposal to bondholders is “good and fair”, despite a committee owning 25% of its senior bonds claiming that the company had rejected “repeated requests” to engage in discussions with bondholders.

Brazilian bonds reacted only slightly on Friday after Fitch downgraded the sovereign another notch, to BB, and kept the government’s rating on negative outlook.

The Argentine province of Neuquén raised $235m of bonds this week, pricing at a yield more than 150bp less than where it had talked about a similar deal last September. The province's deal is the first Argentine bond since the sovereign’s blowout return to bond markets last month.

Brazilian low-cost airline Gol received a triple downgrade this week after announcing a bond exchange that rating agencies qualified as distressed in what has become a familiar story for Latin American corporate credits.

Dutch bank ING is to expand its presence in Colombia as it looks to take advantage of the South American country’s vast infrastructure needs.