Brazil

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.

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.

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.

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.

Brazilian lender Itaú raised $750m of tier two notes on Wednesday, its first ever issue of Basel III-compliant tier two bonds in the international market.

Brazilian steel producer Gerdau could return to the international bond market this week for the first time in over two years, looking to take advantage of strong performance in its bonds and positive sentiment surrounding Brazil.

As of Thursday afternoon, pricing on a duo of Brazilian high yield credits looked set to be pushed to Friday, as investors in Latin American bonds were given the rare chance to get stuck into some riskier names.

Bankers said that Itaú Unibanco’s proposed tier two dollar deal was “exactly the kind of paper people want to buy” as the Brazilian lender lined up investor meetings in the wake of the Brazilian sovereign’s successful first ever dual tranche dollar deal.

Open interest in CME Group’s BRL/USD futures rose in the run up to the Brazilian Central Bank’s 50bp benchmark interest rate cut and has remained elevated ever since.