South America

Latin American power generation company EnfraGen debuted in the international bond markets on Wednesday, benefiting from the strong performance from the region’s last power sector issue to price inside where some investors were expecting — despite a leverage ratio of nine times.

Colombia’s finance ministry said on Wednesday evening that it had taken the “first step to entering the bond market for sustainable development” after Congress approved the issue of thematic bonds.

Paraguayan beef exporter Frigorífico Concepción held calls with bond investors on Monday as it looks to tap its only international bond for the second time.

Chilean government-owned copper producer Corporación Nacional del Cobre de Chile (Chile) became the latest Latin American borrower to take advantage of rock-bottom bond yields to refinance existing debt at historically low yields.

Latin American power generation company EnfraGen will look to sell $710m of split-rated 10 year senior secured notes this week, nearly three years after it postponed an earlier attempt at tapping bond markets.

Latin America primary enjoyed a rare bustling start to December this week with three deals catching the eye for different reasons, despite several market participants saying they were ready for a calmer end to the year.

Argentina’s second largest provincial issuer, Córdoba, improved its consent solicitation to bondholders on Thursday, increasing proposed coupon payments. The offer comes as Argentine provincial debt talks gain momentum, but Córdoba is still some way off its bondholder group’s latest proposal — though the creditor committee has not yet reacted to the improved offer.

After monitoring bond markets for several weeks, Brazil took the plunge on a slightly softer day on Wednesday to raise $2.5bn via the reopening of three different notes.

The Argentine Province of Río Negro on Tuesday launched a consent solicitation that has already earned the support of more than half of bondholders after it improved an initial restructuring offer. But analysts warned that Argentina’s deteriorating economy was forcing provinces to be less aggressive in renegotiating their obligations.

Brazilian steel producer Gerdau will repurchase $300m of dollar bonds with cash as its profits rise thanks to strong demand for steel.

Paraguay’s largest commercial lender, Banco Continental, hopes its planned issuance of sustainability bonds will be an example for other issuers to follow, stating in its sustainability bond framework that its commitment to sustainable development is “inherently linked” to Paraguay’s historical dependence on the agriculture and livestock sectors.

The Province of Neuquén has become the fourth Argentine regional or local government to wrap up a debt restructuring this year. But with most provincial issuers struggling to reach agreements with creditors, several provinces’ bondholders have joined forces to bolster their negotiating position. This may help bondholders force the provinces to offer deals that are better than those the national government wants both sides to make.