South America

An assortment of borrowers, debt capital market bankers and rating agency officials gathered in Nassau on Friday to discuss the state of play for Latin American bond issuers.

The decision by the IDB to grant a $5bn loan to Argentina has helped buoy confidence in the country ahead of its return to international capital markets after a 15-year absence with a $12bn-$15bn bond

The Brics bank is to finally make its capital markets debut later this month by issuing green bonds in RMB with the proceeds to be channelled into energy and infrastructure projects, sources have told Emerging Markets, a sister publication of GlobalCapital Asia.

Argentina, for over 15 years a pariah of international capital markets, will begin meeting fixed income investors on Monday with bond investors and bankers in bullish mood about what could be the largest EM debt issue for two decades.

Lat Am syndicate bankers said on Thursday that the market remained in wait-and-see mode ahead of Argentina’s imminent jumbo bond return as another week passed without issuance.

Argentine real estate company IRSA will buy back nearly $213.5bn of dollar denominated bonds after wrapping up a tender offer that will be financed by its recent bond deal.

Brazilian meatpacker Marfrig used cash to buy back $72m of senior notes from October 9 last year to February 18 this year, focussing on its lowest coupon, lowest dollar price bond, the company revealed on Monday.

Short term option implied volatility for the Brazilian real rose to more than 23%, the highest level in some weeks, as the country prepares for the possibility of a presidential impeachment vote by April 17.

Three large Brazilian real denominated MTNs issued by Export-Import Bank of Korea (KEXIM) indicate that Brazilian investors are making a tax play, according to bankers.

Brazilian pulp producer Eldorado Brasil Celulose is plotting a potential debut cross-border bond that investors believe could receive a decent reception — if the company waits long enough to issue.

Brazilian low-cost airline Gol Linhas Aéreas Inteligentes said on Monday it had hired PJT Partners to advise it on its capital structure and liquidity, immediately provoking words of warning from Standard & Poor’s.

The Republic of Paraguay was the only Latin American borrower to sell bonds in a short Easter week for much of the region, as conditions continue to improve for new issues.