South America

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.

Mexican polyethylene producer Braskem Idesa clinched a debut bond issue on Monday, as potential positive credit triggers and highly attractive pricing outweighed doubts regarding a supply contract with Pemex.

Brazilian investment bank BTG Pactual will begin fixed income investor meetings on Wednesday ahead of a proposed senior unsecured bond that market participants expect will be well received.

Chilean mobile phone operator WOM approached bond markets for the first time on Thursday seeking $450m of senior unsecured notes to refinance its existing capital structure and complete a dividend recap.

Two days after canceling a tender offer it had planned to finance with a private placement (PP), Brazilian engineering and construction firm Andrade Gutierrez has launched an exchange offer seeking a similar result.

It is less than two months since one of the most serious constitutional crises in Peru’s history, yet on Thursday the sovereign sold Sl10bn ($2.96bn) of new local currency debt at record low yields.

Two days after cancelling a tender offer that it had planned to finance with a private placement, Brazilian engineering and construction firm Andrade Gutierrez has launched an exchange offer seeking a similar result.

Brazilian engineering and construction firm Andrade Gutierrez has cancelled the buy-back of its bond maturing in 2021 after failing to sell a new five year bond, saying it expects to announce a revised transaction soon.

Some Brazilian bankers may be dumbfounded that their country and its highly unpopular president is considered a safe haven, but hope that Latin America’s sleeping giant is on the cusp of an upswing is driving demand for the country’s issuers amid social unrest elsewhere in the continent.