South America

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.

Bolivia will be forced to abandon plans to raise crucial funding in bond markets, the country’s public credit head has told GlobalCapital, after its Congress passed a bill that requires the government to seek approval from the legislative branch on the terms of the issue, amid a tense political climate.

Uruguay raised $2bn-equivalent of debt on Wednesday — the bulk of which came from a rare inflation-linked local currency issue — to become the final investment grade Latin American sovereign to tap international bond markets in the coronavirus era.

Bankers said that Chilean cable company VTR had catered for both emerging markets and high yield bond buyers as it raised $1.15bn of new bonds across two heavily oversubscribed tranches on Wednesday.

Uruguay-headquartered Navios South American Logistics on Tuesday notched a $500m 10-year bond that left the company with a far more comfortable debt maturity profile. But Navios had to improve terms for investors — and wait a week after it first announced the issue — to get the refinancing done.

VTR Finance, the Chilean subsidiary of telecoms group Liberty Latin America, is marketing a dual-tranche refinancing that is likely to be distributed to both EM and dedicated high yield bond buyers and will shift debt towards the operating company.

Bankers said that Uruguay could provide a stern test of risk appetite if it decides to announce a new bond issue in local currency, after the sovereign began investor calls saying it could issue in dollars and/or Uruguayan pesos.

Peru's largest commercial lender Banco de Crédito del Perú (BCP) will begin fixed income investor calls on Monday as it contemplates a tier two capital bond issue, just two weeks after parent company Credicorp issued a debut $500m senior deal.

The possibility of Argentina’s debt negotiations ending up in court drew closer on Wednesday night, as the positions of the largest group of bondholders and the government appeared to be irreconcilable.

Nexa Resources, the mining arm of Brazilian conglomerate Votorantim, issued $500m of 10 year bonds on Monday, offering a healthy concession to its existing curve and seeing its new bond catch a broader rally on the break.