Brazil

Brazil completed a tender offer for seven different dollar bonds on Tuesday, buying back for cash small amounts of bonds maturing between 2027 and 2041 but mostly guiding bondholders into its new long 30 year issued on Monday.

Strong technicals continue to drive international bond markets in Latin America as Brazil on Monday became the latest sovereign to take advantage of low rates and push out debt maturities with a 'blowout' dual tranche deal.

The only two corporate issuers from Latin America this week sailed through primary markets as bankers said low rates and technical factors would continue to override socio-political volatility and sluggish economies in the region.

After bankers said Braskem’s blow-out bond issue this week was a vote of confidence for Brazil’s economic turnaround, a small single-B rated bank and an infrastructure company that underwent a restructuring just a year ago a set out to provide a tougher test of demand.

Emerging market issuers continued to enjoy solid market conditions this week with new mandates joining the pipeline and Abu Dhabi’s Mamoura executing a $3.5bn triple tranche trade.

Brazilian petrochemicals firm Braskem clinched a $2.25bn dual tranche bond issue on Tuesday with bankers close to the deal claiming a negative new issue concession after US corporate buyers helped build a strong book.

Private Brazilian lender Banco Original will look to enter international bond markets with a $200m senior unsecured issue, according to rating agency reports.

Braskem, the Brazilian petrochemicals firm, is visiting fixed-income investors in the US and Europe as it looks to take advantage of low rates to refinance existing debt.

Brazilian petrochemicals firm Braskem will look to issue new debt to finance a tender offer for three different short-dated bonds.

Brazilian port terminal owner Prumo Participações e Investimentos should be able to tighten pricing by quite some way on Tuesday after announcing initial price thoughts that offered a generous pick-up of to similarly rated Brazilian credits.

A recent innovation in the green bond market — the transition bond — could help expand the issuer base, according to Credit Suisse’s head of environmental, social and governance strategy. But an investor said the standard of green bonds needed to be maintained.

The Inter-American Development Bank has published a report promoting the use of covered bonds as a funding tool for green developments in Latin America and the Caribbean. But it remains to be seen whether risk-averse covered bond investors are ready to take the plunge into emerging markets — particularly given regulatory hurdles in the swaps market.