Brazil

Brazil’s largest independent oil and gas company, Petro Rio, will begin investor calls on Thursday ahead of a proposed debut bond issue that bankers say will test the strength of the market like no other Latin American issuer this month.

Brazilian aircraft manufacturer Embraer began investor calls on Tuesday as it prepares its first new issue since several ratings downgrades earlier in the year.

The sustainability-linked bond market is about to get its second deal. Suzano, the Brazilian pulp and paper company, is preparing to bring a deal linked to its carbon emissions intensity, as foreshadowed by GlobalCapital in February.

Brazilian bank Itaú has hired from the Latin American debt capital markets team of a rival bank to replace its outgoing debt syndicate head.

Bond bankers covering Latin America say that they expect the September 7 Labor Day holiday in the US to herald the resumption of primary supply after only a handful of the region’s issuers tapped markets in August despite very strong conditions.

Several corporate issuers in Latin America could be on the cusp of losing their investment grade status, warned Fitch Ratings on Wednesday, with commodities-related businesses at particular risk.

Brazilian food group BRF wrapped up a now rare cash tender for existing bonds on Friday, buying back just under $300m of debt.

Latin American bond bankers say they expect new issuance to come at a calmer pace for the next few weeks, with just two Brazilian companies the only borrowers from the region to venture into primary markets this week.

Banco BV, the banking arm of Brazilian conglomerate Votorantim, raised $500m of five year senior unsecured bonds on Wednesday in a deal well supported by retail, local and Brazilian bank buyers as well as the usual EM-dedicated institutional accounts.

Just weeks after rating agencies stripped the issuer of its investment grade rating, Brazilian petrochemicals giant Braskem sold $600m of hybrid bonds that bankers said showed the company’s commitment to its credit metrics.

Lat Am bond markets continued to demonstrate growing risk appetite as Brazilian petrochemical company Braskem began marketing hybrid bonds on Tuesday.

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.