Brazil

Two high profile Latin American issuers brought the region’s corporate sector back into play on Thursday. Mexico’s Grupo Bimbo and Brazilian lender Banco do Brasil both managed hefty spread tightening after offering conservative price talk, much like the EM sovereigns that dominated primary markets.

Moody’s said that it believed fiscal reforms in Brazil were inevitable no matter who wins October’s election, removing the country’s negative outlook just weeks after the rating agency’s peers downgraded the sovereign.

Three of Brazil’s most important issuers received overwhelming responses to tender offers in the last week, as the country’s corporates focus on liability management.

Rio Oil Finance Trust, the SPV through which Rio de Janeiro’s state pension fund RioPrevidencia issues bonds backed by royalties from state oil giant Petrobras, has a knack for timing.

Brazilian bonds rallied on Thursday after the Supreme Court ruled that former president Lula Inácio da Silva must go to jail before exhausting his last appeal against a corruption conviction — effectively ruling him out of October’s presidential election.

Brazilian mining giant Vale has completed the buy-back of $1.75bn in dollar bonds after more than half of the owners of its 4.375% 2022s agreed to sell their notes.

Brazilian state oil giant Petrobras will buy back $4bn of bonds as part of a tender offer after nearly twice as many bondholders offered to sell their notes.

Meatpacking company Minerva began investor meetings on Wednesday ahead of a planned new perpetual bond issue that will pay for a tender offer of the company’s existing perps, as Brazilian issuers focus on liability management.

Latin American bond bankers are presenting unusual structures to potential buyers, even as markets remain weak and more straightforward, well-known credits are managing only modestly successful deal execution.

RHI Magnesita, the Austrian-Brazilian maker of refractory products, has refinanced its debt with a new €305.6m five year term loan.

Funding officials said green bonds had stimulated other sustainability work across their organisations at the Climate Bonds Initiative conference in London on Tuesday.

Celse (Centrais Electricas de Sergipe), the Brazilian energy company, has begun an investor roadshow ahead of the planned issuance of Brazilian real-denominated notes backed by Swiss Export Risk Insurance (Serv).