Brazil

Lat Am bond bankers said that Brazilian mining giant Vale had found the perfect window to tap its dollar bonds due 2026 on Monday — some four months after it had mandated banks for the trade.

Brazilian mining giant Vale took advantage of a huge recovery in iron ore prices since Donald Trump won the US presidential election to tap its 2026s some 105bp inside where it first issued the bonds in August.

Brazilian railway operator Rumo wrapped up another busy day for Latin American new issues on Thursday with a $750m seven year non-call four deal that came well inside initial price thoughts.

Brazilian railway operator Rumo is likely to issue on Thursday after announcing a new seven year non-call four bond, according to syndicate bankers on the deal.

Following the publication of primary covered bond legislation two years ago, Brazil’s central bank this week launched a public consultation on draft secondary covered bond legislation.

Brazilian aircraft manufacturer Embraer and Guatemala-headquartered Central American Bottling Corporation (CBC) showed that Latin American bond markets had put the softness at the end of last week behind them with heavily oversubscribed trades on Wednesday.

Brazilian oil giant Petrobras has increased the maximum amount of its tender offer for a second time, from $4bn to $6bn, as it continues to make impressive progress chipping away at its roughly $120bn debt mountain.

All seven new issues to emerge from Latin America last week ended Friday above their respective reoffer prices to reiterate the favourable conditions available to the region’s borrowers.

Brazilian state-owned oil company Petrobras cemented its popularity as an improving credit story with a hugely oversubscribed $4bn new issue that flew above par in secondary markets, triggering a great week for Lat Am new issues and reiterating the renewed optimism around Latin America’s largest economy.

Investors saw Brazilian pulp and paper company Fibria Celulose’s new 10 year green bond pricing very tight to its existing curve, despite the company having to remove controversial covenant language after it proved unpopular with investors.

Four private sector corporates from Latin America sold dollar denominated bonds this week, although borrower-friendly market conditions were not enough to allow the issuers to get away with more aggressive covenant language.

Both of Petrobras’ new benchmark bonds traded up more than a point the day after pricing as bankers said the level of demand for the deal would have allowed the company to print even more than the $4bn it managed on Monday.