South America

Peruvian sugar cane producer Corporación Azucarera del Perú (Coazucar) has given bondholders more time to commit to its tender offer as it looks to cut its exposure to the dollar.

Latin America development bank Corporación Andina de Fomento (CAF) has picked leads for a euro transaction and will hold investor calls this week.

Mauricio Macri, the conservative mayor of Buenos Aires, outperformed expectations on Sunday’s presidential elections in Argentina, meaning bond markets may receive a fillip on Monday morning.

Sovereigns and quasi-sovereigns continue to dominate Latin America new issues, as Uruguay this week showed that attractive all-in funding costs are on offer thanks in large part to low base rates.

The prospect of interest rates in Europe remaining low for a long time means that Uruguay is not likely to raise euro-denominated debt “in the very short term”, said a debt official from the country, but the sovereign is looking at the market as a way to continue to diversify its investor base.

A struggling nuevo sol is turning Peru’s companies rapidly away from international bond markets as the issuer of the tightest Peruvian corporate bond ever looks to rid itself of all dollar exposure.

Uruguay sent a sign that broad volatility in emerging markets would not put Latin American sovereigns off the new issue market with a $1.7bn amortising 12 year deal that it will use to buy back old bonds.

Peru looked set to test the euro market for the first time in more than a decade after announcing plans for an extensive European roadshow.

Peru will meet investors in Europe next week ahead of a potential return to the euro bond market for the first time in more than a decade.

Fitch has downgraded a series of project bonds issued by Odebrecht’s oil and gas subsidiary for the fifth time this year following the early termination of an oil rig contract by Petrobras.

Uruguay finance minister, Danilo Astori has told GlobalCapital that the country will mandate banks for a global bond in the coming days, with at least three Latin American governments preparing to raise international debt before the year is out.

Banco ABC Brasil this week became the fourth Brazilian lender and the sixth issuer from the country in a month to launch a tender offer for existing debt as low dollar prices make bond buybacks attractive.