Brazil

Three Latin American companies managed to raise dollar bonds on Thursday in the face of challenging market conditions, but of the five that completed roadshows on Wednesday, one was left evaluating feedback, having announced guidance, and the other had not appeared.

Panama came from nowhere to lead a slew of Latin American credits marching to raise bond funding on Thursday, but the weight of supply coupled with a tricky trading session meant that results were as up and down as the recent market conditions.

Brazilian infrastructure group Invepar will hit the road on Wednesday proposing the sale of a bond guaranteed by its two highest quality assets in order to finance an imposing domestic debt maturity.

Brazilian lender Banco Mercantil do Brasil is looking to buy back nearly a third of its only outstanding international bond via a tender offer.

Brazilian meatpacker JBS will look to continue on the road to recovery with a proposed benchmark-sized dollar deal next week, having received a ratings lift from S&P Global Ratings on Thursday.

Emerging market bond investors were as quick to highlight medium-term challenges in Brazil as they were to express relief at the outcome of the first round of Sunday’s presidential election, though DCM bankers highlighted improved prospects for primary markets.

Bond market analysts and investors warned that post-election market euphoria in Brazil could fade quickly even if right-wing populist Jair Bolsonaro, who has outlined a market-friendly economic plan, wins in the second round as seems likely.

Any bond market activity from Brazilian issuers before October’s elections will be focused on liability management, said DCM bankers after Braskem announced it would be redeeming some of its perpetual notes.

Brazilian pulp and paper producer Suzano Papel e Celulose’s CFO told GlobalCapital that he believes the company would have had to pay a higher rate on its latest dollar bond had it chosen to issue immediately after its roadshow.

Brazilian pulp and paper producer Suzano Papel e Celulose’s CFO told GlobalCapital that he believes the company would have had to pay a higher rate on its latest dollar bond had it chosen to issue immediately after its roadshow.

The Middle East is continuing its domination of the CEEMEA primary market and even the Latin America new issue market is starting to see some action as a run of successful bonds in the last fortnight is helping to bolster investor confidence.

Brazilian state-owned development bank Banco Nacional de Desenvolvimento Econômico e Social (BNDES) will buy back nearly $650m of existing bonds, including over half of its existing green bond.