South America

Bonds issued by Avianca traded up this week after the Colombian airline completed the final stage of a complex restructuring, effectively giving it permission to push out a looming bond maturity by three years.

Colombian lender Bancolombia made a late year dash to international markets on Tuesday as it sold Basel III-compliant subordinated notes to fund the buy-back of old style tier two bonds.

Colombian airline Avianca has finally completed negotiations with existing creditors, allowing it to wrap up a much-anticipated $250m loan from United Airlines and Kingsland Holdings as well as $125m in financing from new investors.

Brazilian lender Banco Daycoval sold a new five year senior unsecured dollar bond on Friday, coming some 25bp inside where its compatriot BTG Pactual had priced a similar deal earlier on Tuesday.

Banco Daycoval looked set to become the second Brazilian lender to price a five year senior unsecured bond after setting guidance on Thursday afternoon, as markets appeared to shrug off US president Donald Trump’s latest tariff threat.

Brazilian construction and engineering firm Andrade Gutierrez finally looks set to push out a looming bond maturity after an exchange offer found better take-up than a new issue and tender.

Brazilian investment bank BTG Pactual sold senior debt abroad for the first time in nearly two years on Tuesday, opting to push on despite volatile conditions as trade fears again worry investors.

Market participants expect Uruguay’s new centre-right government to tighten fiscal policy, but rating agencies believe doing so will prove a difficult balancing act.

Peru will buy back a portion of local currency bonds maturing next year after nearly a third of the holders of the notes agreed to participate in a tender offer, bringing the sovereign’s latest liability management exercise to a close.

Bond buyers and bankers said that a relatively quiet year for financial institution issuance in Latin America should ensure a warm reception to three banks from the region which are lining up bond deals.

As Latin America's international bond markets took an extended break for the US Thanksgiving holiday, a Brazilian lender is set to give investors more food for thought in December with a senior unsecured issue.

Colombia’s largest lender, Bancolombia, became the second Latin America bank in two days to announce new issue plans on Tuesday. Similar deals could follow, say DCM bankers.