South America

The Province of Buenos Aires is likely to provide an early test of appetite for Argentine credit on Wednesday after completing a roadshow with Citi, HSBC and JP Morgan.

The arrest of former Brazilian president Lula da Silva gave new urgency to a strong rally in Brazilian bonds on Friday after the market appeared to take the detention as a sign that president Dilma Rousseff was closer to impeachment.

Latin America’s pain is Argentina’s gain. A torrid year for bond markets and economic struggles across the region have set the stage perfectly for Argentina — so long the sick man of Latin America — to return to international bond markets with an audacious trade.

Banco Santander Chile will buy back more bonds than originally planned after its tender offer was fully subscribed before the early tender deadline on March 1.

Colombia on Wednesday became the second Latin American issuer this week to announce a European roadshow, although the sovereign is understood to be still pondering over the currency of its next bond.

At least five Argentine provinces are considering tapping international bond markets this year, according to investors, with the Province of Buenos Aires likely to be first after announcing a roadshow on Wednesday.

Should Argentina issue its $15bn in one go or not? If president Mauricio Macri’s government — and its debt officials — continue to communicate and then back those words with action, it won’t matter how many deals it takes.

Brazilian cement company Votorantim Cimentos is looking to buy back up to €350m ($380m) of debt, using the proceeds of a cash injection from its holding company to become the latest issuer to take advantage of the poor performance of Brazilian bonds.

Bankers and analysts were confident that Argentina will find the demand it needs for a triumphant return to international capital markets after the mediator in its debt dispute said that the 15 year legal battle between the country and leading holdout creditors is nearing a solution.

Argentina’s nearing return to international bond markets after more than 15 years away could drive the Province of Buenos Aires to get its bond funding out the way as soon as possible to avoid clashing with the up to $15bn of sovereign supply in the pipeline.

Hypermarcas, the Brazilian pharmaceutical company, will not extend the early bird deadline on the tender offer for its 6.5% senior notes due 2021 after bondholders responded positively to the buy-back offer.

Lat Am bond bankers said the seven banks understood to have led Argentina’s repo trade in December were the strongest candidates to lead the sovereign’s seemingly imminent re-entry into international capital markets.