South America

Argentina’s leading mortgage lender is looking to raise at least $200m in the international bond markets to finance a tender offer of outstanding debt due April 2016.

Chilean financial services firm, Tanner appeared to have done a disappearing act this week, seemingly cancelling its attempts to raise dollar debt having released price thoughts last Friday.

Moody’s has cut the rating on Brazilian shopping centre owner General Shopping’s $315m unsecured bonds from B2 to Caa1, saying there is an “elevated” risk of default in the next year or two.

Moody’s removed the negative outlook on Argentina’s Caa1 rating as analysts said the political climate is looking more positive for holders of the sovereign’s debt.

Options and swaps market price action suggests that foreign investors are starting to believe that the macroeconomic and political risks for Brazilian assets have found a bottom.

The Petrobras corruption scandal continues to trouble the firm's business partners as Odebrecht Offshore Drilling Finance received another downgrade on Friday following the September cancellation of the ODN Tay IV contract.

Peru on Tuesday became the latest Latin American sovereign to issue in euros and more could be on the way as the region’s borrowers look to make their mark in Europe in case dollar markets become more expensive.

Public sector borrowers have jumped on demand for Brazilian real notes with a flurry of medium term notes — and there is more in the pipeline, said niche currency and MTN bankers.

Brazilian meatpacker Marfrig has completed a tender offer on four of its bonds, spending just over $400m of the $1.21bn in cash it received from the sale of its UK subsidiary on the buyback.

Latin American sovereigns’ march back towards European bond markets continued on Tuesday as Peru achieved its lowest ever coupon on an international bond with its long 10 year. But opinion is split on the value of the euro market.

Peru opened books on its first euro transaction in over a decade on Tuesday morning, while other Latin American sovereigns are eyeing deals in the currency.

Struggling Brazilian telco Oi received a welcome lift in the eyes of its bondholders on Monday after a Russian investment group proposed to invest in the company if it merges with rival Tim.