South America

Brazilian mining giant Vale returned to bond markets after a three year absence on Monday with a 10 year bond that bankers said left investors hungry for more.

After a rush of dollar issuance from Latin American sovereigns, Uruguay — the last of the region’s investment grade countries to turn to bond markets during the coronavirus pandemic — spotted the chance in late June to become the first EM sovereign to issue abroad in its own currency this year. Herman Kamil, director of the country's debt management office (DMO), tells GlobalCapital how the sovereign bucked the trend.

As tensions between Argentina and its largest bondholders climbed this week, the government’s prize asset, oil firm YPF, differentiated itself with a debt exchange that, according to rating agencies, does not punish creditors — unlike the sovereign’s proposals.

Debt capital markets and syndicate bankers covering Latin America say that there is plenty of primary market activity on the way before the end of summer, as new issuance ticked over during the shortened July 4 week.

Banco Internacional del Perú (Interbank) sold a $300m subordinated bond on Tuesday just two business days after its largest domestic rival raised $850m in the same format.

EM bond investors were treated to a second issue from a Cosan subsidiary in two days on Wednesday as Raizen, the fuel distributor and sugar and ethanol producer, reopened its 5.3% January 2027s.

Brazilian railroad operator Rumo tightened pricing sharply on the first green bond from Latin America in the coronavirus era on Tuesday, as bankers said that the environmental label gave investors more options over where to place the bond.

Banco Internacional del Perú (Interbank) sold a $300m subordinated bond on Tuesday on the back of a 2.5 times subscribed order book, just two business days after its largest domestic rival sold $850m in the same format.

Brazilian railroad operator Rumo, which Fitch believes should only suffer a “limited” impact from coronavirus, is preparing what would be the first green bond from Latin America since the pandemic hit.

Peru’s largest commercial lender Banco de Crédito del Perú (BCP) raised $850m of 10-year non-call five tier two bonds on Friday, offering what some bankers saw as a slim pick-up to its senior debt on the back of a nearly four times subscribed order book.

Banco Internacional del Perú (Interbank) joined its larger peer Banco de Crédito del Perú (BCP) in the new issue pipeline on Thursday as it announced plans for a new tier two deal

Uruguay’s management of the Covid-19 pandemic — so far, superior to the majority of crisis-hit Latin America — helped it issue $2bn-equivalent of bonds on Wednesday with a very slim new issue premium on its inflation-linked peso notes and a negative concession on a dollar tap.