South America

Marcelo Delmar, a veteran of Latin American bond markets, has joined Morgan Stanley’s debt capital markets team in New York, GlobalCapital understands.

Argentina’s second largest city, Córdoba, said on Wednesday that holders of 83.79% of its bonds had agreed to its consent solicitation — enough to trigger the collective action clause and enable the issuer to restructure the entire $150m note.

Though the bond market reaction to the impeachment of Peru’s popular president was not as severe as it would have been in most Latin American countries, investors said that political volatility would continue to challenge the sovereign’s credit profile and that the situation presented risks for next year’s elections.

Brazilian steel producer Companhia Siderúrgica Nacional (CSN) took advantage of a vacant Latin American primary market to add $300m to its 2028s on Tuesday, as bankers say several of the region’s big names are still preparing to take advantage of strong conditions after the US elections.

The Province of Buenos Aires extended the deadline on its restructuring proposal for the ninth time on Monday — again without modifying the terms. But with bondholders saying they are considering “all options” after hiring legal advisors last week, the provincial government says it is willing to improve its offer and called on creditors to resurrect negotiations.

Bond investors are again clashing with an Argentine government issuer over restructuring terms, with the Province of Córdoba’s consent solicitation turned down on Sunday evening just two days after launch. However, Córdoba’s creditors published a counterproposal that is considerably more friendly to the province than a previous proposal.

Chile published its first sustainable bond framework on Wednesday, saying it wanted to build on the last year’s green bond issues to further diversify its investor base.

Argentine power company Gennaia is at risk of defaulting on its domestic dollar bonds as a result of capital controls issued by the Central Bank of Argentina (BCRA), Fitch said on Tuesday as it slashed the rating on the issuer’s international notes.

As the Argentine Province of Buenos Aires approaches six months in default, a creditor group holding nearly half of the issuer’s international bonds has hired a major international law firm and says it is “prepared to evaluate all available options”.

Chile, the only Latin American sovereign to have issued a green bond, is weighing up different thematic bonds as it makes its funding plans for 2021.

Just one day before a likely hard default on its $150m of 7.875% 2024s, Argentina's City of Córdoba on Wednesday asked bondholders to modify the payment terms according to a plan that already has the backing of Chilean asset management firm Moneda.

Chile, which in 2019 became the first Latin America sovereign to issue a green bond, is weighing up different thematic bonds as it makes its funding plans for 2021, according to a senior funding official.