Argentina

Primary markets in Latin America stayed silent on Tuesday amid a hefty sell-off in EM currencies, with Ecuador and Argentina continuing to provide country-specific volatility.

A 675bp rate hike from the Argentine central bank, BCRA, on Friday finally brought some support to the peso. But the sovereign’s bonds continue to trade poorly as the currency’s recent free-fall highlighted the many vulnerabilities in the country’s economic recovery.

Two Argentine corporates postponed bond issues on Thursday as the Central Bank of Argentina’s (BCRA) attempts to control the fall in the peso proved fruitless, leaving investors asking questions about the country’s economic outlook. Oliver West reports.

The largest telecommunications company in Argentina has become the latest issuer from the country to look to international bond markets, even as traders and investors fret over a swift slump in the peso.

Petroquímica Comodoro Rivadavia (PCR), the Argentine energy company, began investor meetings on April 25 ahead of a planned debut international bond sale, with compatriot and peer company Capex expected to provide the closest comparison.

Argentine pipeline company Transportadora de Gas del Sur (TGS) became the first Latin American company in several weeks to find itself overwhelmed with orders as six high yield corporates tapped the dollar markets in two days.

Petroquímica Comodoro Rivadavia (PCR), the Argentine energy company, will hit the road on Wednesday ahead of a planned debut international bond sale, with compatriot and peer company Capex expected to provide the closest comparison.

Argentina’s new issue pipeline is showing further signs of picking up, with the Province of Córdoba understood to be weighing up the possibility of a return to markets, according to bond players.

Three Argentine companies are preparing off-shore bond issues and others continue to approve bond shelves as a near three month break in new issue activity from the country could soon come to an end.

Argentine gas pipeline company Transportadora de Gas del Sur (TGS) has pencilled in April 24 for its international bond market return as it looks to refinance its existing dollar bonds.

No Argentine issuers have tapped international bond markets since January, but companies from the country keep approving issuance plans.

Banco de la Ciudad de Buenos Aires (Banco Ciudad) is lining up a potential international bond outing after mandating banks for an Argentine peso-linked trade.