South America

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.

Mendoza has joined Neuquén in the rush to become the first Argentine region to follow the sovereign’s recent $16.5bn bond market comeback and has mandated banks for a dollar bond.

Latin American development bank Corporación Andina de Fomento (CAF) is expected to rake in a substantial order book for its first dollar benchmark in over a year, according to bankers close to the deal.

Argentine province Neuquén launched an exchange offer for its existing senior secured 2021s on Monday, the same it began a three day roadshow with fixed income investors ahead of a potential new 12 year deal backed by oil and gas royalties.

Colombian lender Banco de Bogotá is looking to issue up to $1bn of tier two 10 year notes, although Moody’s said that the bonds will do little to address the bank’s low capital ratio.

Investors said the Argentine province of Neuquén would be feeling lucky that it had postponed a bond issue last September after the issuer this week announced a second roadshow in less than a year.

Grupo Sura, the owner of the largest pension fund in Latin America and the largest bank in Colombia, raised $550m of 10 year senior unsecured bonds on Tuesday as Latin American high grade corporates finally took advantage of a receptive market.