South America

Empresa de los Ferrocarriles del Estado (EFE), the only operator of long distance passenger railways in Chile, is looking to debut in international bond markets with a 10 or 30 year bond of up to $500m.

The unprecedented central role real money investors played in debt talks with Argentina and Ecuador could change the nature of sovereign restructuring, experts said, after the two countries this week reached agreements with creditors over billions of dollars of bonds. Oliver West and Ross Lancaster report.

Several corporate issuers in Latin America could be on the cusp of losing their investment grade status, warned Fitch Ratings on Wednesday, with commodities-related businesses at particular risk.

Telecom Argentina said on Tuesday that it would issue nearly $389m of amortising bonds maturing in 2025 as a result of a successful debt exchange and raising $135m in new money.

As Argentina’s largest bondholders confirmed that they would support the government’s amended restructuring offer, the sovereign gave investors until August 24 to participate in the deal, with analysts expecting a high take-up.

Argentina announced an agreement with bondholders on Tuesday to restructure $65bn of debt. The country's dollar bonds had rallied late on Monday as rumours circulated that a deal was close following months of negotiations with either side repeatedly rejecting the other's proposals.

In recent weeks, Argentina’s public relations agency has been cramming the inboxes of financial journalists as the government goes on the attack in an apparent attempt to guilt-trip dissenting creditors into accepting its restructuring offer.

In recent weeks, Argentina’s PR agency has been cramming the inboxes of financial journalists as the government goes on the attack in an apparent attempt to guilt-trip dissenting creditors into accepting its restructuring offer.

The Inter-American Development Bank (IADB) said on Monday that it would elect its next president virtually in September as it rescheduled its annual meetings for the second time.

After Argentina said on Saturday that it was looking at improving the legal — but not financial — terms of its latest exchange offer. Dissenting bondholders have united further and now say they hold more than half the sovereign’s outstanding notes.

Brazilian food group BRF wrapped up a now rare cash tender for existing bonds on Friday, buying back just under $300m of debt.

Latin American bond bankers say they expect new issuance to come at a calmer pace for the next few weeks, with just two Brazilian companies the only borrowers from the region to venture into primary markets this week.