South America

A return of dollar issuance from Latin America edged closer on Thursday as details emerged of planned project bonds from Colombian toll road concessionaire Pacifico 3.

Progress has been made in negotiations between the Argentinian government and US holdout creditors, court-appointed mediator Daniel Pollack said late Wednesday.

Steelmaker Companhia Siderurgica Nacional (CSN) could be the next major Brazilian corporate to be forced into a debt restructuring, Fitch Ratings has warned.

Argentina’s government reopened negotiations with holdout creditors on Monday after securing a $5bn loan from seven global banks last week.

South American sovereign Uruguay said on Friday that it intends to issue about $1.5bn in international bond markets in 2016 as part of its prefunding policy.

Automotores Gildemeister, the Chilean car seller, is edging closer to an agreement with its bondholders that would see it emerge from default after more than 90% of bondholders agreed to a distressed exchange.

Consensus is growing among investors and analysts that default is inevitable for Venezuela, as oil hits lows not seen in more than a decade.

Energy investor EIG said that bondholders of Colombian-Canadian oil firm Pacific Exploration & Production faced a “de minimis” recovery after the company said on January 15 that it would not make scheduled coupon payments this month.

Colombian state owned oil company, Ecopetrol said it wanted to reiterate its commitment to cost cutting and protecting its cash flow after Moody’s left it perilously close to losing one of its investment grade ratings.

Heavily indebted Colombian-Canadian oil company Pacific Exploration & Production disappointed some bondholders on Friday by announcing it intended to miss coupon payments due this month and use the 30 day grace period “to assess strategic alternatives”.

Latin America’s best-rated sovereign reopened the region’s capital markets this week with a dual-currency trade that showed large financings are still on offer — though it also provoked debate over issuance strategies in tough markets.

Bankers say that at least two sovereigns from Latin America are considering announcing deals on Wednesday after Chile brought some much needed new issue action to the region on Tuesday.