South America

The world’s largest wheel manufacturer, Iochpe-Maxion, on Tuesday became the fourth Latin American issuer in four business days to issue a sustainability-linked bond (SLB). The Brazilian issuer sold a $400m seven year deal with an apparently more ambitious greenhouse gas emissions reduction target than the one set by Mexican car parts supplier Metalsa on its own SLB last week.

Oil and gas producer Pan American Energy sold $300m of six year bonds on Tuesday in the first international new issue from an Argentine borrower since July 2019, surprising some market participants who had been sceptical about its chances.

Brazilian cosmetics group Natura sold a sustainability-linked bond (SLB) on Monday offering an exceptionally high coupon step-up of 65bp if it does not meet sustainability targets. Though the greater increase was to compensate for the shorter time between the potential step-up and maturity than on most SLBs, it succeeded in grabbing the attention of EM bond buyers.

Puerta de Hierro, a toll road project in Colombia’s Caribbean region, has tapped a combination of Colombian, Latin American and international investors to sell a Colombian peso inflation-linked social bond amid a wave of ESG-related issuance in Latin America.

Chilean miner CAP and Mexican car parts supplier Metalsa on Thursday became the latest in a string of Latin American companies to price dollar bonds not only at the tight end of guidance, but inside the indicated range, as bankers say investors are being coy with bookrunners about their pricing expectations.

Emerging markets bond buyers and issuers are regaining confidence as US Treasury volatility falls, with issuance in CEEMEA and Latin America having picked up in recent days and a pipeline building.

Brazilian cosmetics group Natura on Wednesday became the third Latin America company this week to announce plans to issue sustainability-linked bonds, joining Mexicans Femsa and Metalsa in the pipeline.

Latin American oil and gas company GeoPark priced a reopening of its 2027 bonds with a negative new issue concession on Tuesday, taking advantage of strong demand from holders of its old notes to raise $150m.

As Colombia’s government gears up for a political battle to push through a tax reform that may save its investment grade status, the sovereign’s head of public credit told GlobalCapital that the market reception of a dual tranche bond issue on Monday represented a vote of confidence from international investors.

Puerta de Hierro, a toll road project in Colombia’s Caribbean region, will begin investor calls on Monday as it looks to sell an inflation-linked Colombian peso-denominated social bond that has a double-A credit rating thanks to a guarantee from the US International Development Finance Corporation (DFC).

Oil and gas producer Pan American Energy is looking to become the first Argentine company to issue international bonds this year, though it is the company’s operations in Bolivia and Mexico that may enable it to dodge the distress in its home country.

Scotiabank has hired a new head of syndication in New York, GlobalCapital understands.