Brazil

Gol Linhas Aéreas Inteligentes, the Brazilian low cost airline, insisted on Friday that its proposal to bondholders is “good and fair”, despite a committee owning 25% of its senior bonds claiming that the company had rejected “repeated requests” to engage in discussions with bondholders.

Brazilian bonds reacted only slightly on Friday after Fitch downgraded the sovereign another notch, to BB, and kept the government’s rating on negative outlook.

Brazilian low-cost airline Gol received a triple downgrade this week after announcing a bond exchange that rating agencies qualified as distressed in what has become a familiar story for Latin American corporate credits.

Brazilian telecoms firm Oi has entered a “customary non-disclosure” agreement with Moelis & Company, the advisor for a group of its bondholders, as it looks to work on cutting its debt burden.

Credit markets reacted positively after Brazil’s congress voted in favour of impeaching president Dilma Rousseff on Sunday.

Investments in Brazilian sugar companies have often ended with a distinctly bitter taste for bondholders as the sector has battled low prices for the commodity and a severe currency devaluation. Those who bought USJ Açúcar e Álcool’s $275m 9.875% 2019s in December 2012 are facing familiar pain.

The Brics bank is to finally make its capital markets debut later this month by issuing green bonds in RMB with the proceeds to be channelled into energy and infrastructure projects, sources have told Emerging Markets, a sister publication of GlobalCapital Asia.

Brazilian meatpacker Marfrig used cash to buy back $72m of senior notes from October 9 last year to February 18 this year, focussing on its lowest coupon, lowest dollar price bond, the company revealed on Monday.

Short term option implied volatility for the Brazilian real rose to more than 23%, the highest level in some weeks, as the country prepares for the possibility of a presidential impeachment vote by April 17.

Three large Brazilian real denominated MTNs issued by Export-Import Bank of Korea (KEXIM) indicate that Brazilian investors are making a tax play, according to bankers.

Brazilian pulp producer Eldorado Brasil Celulose is plotting a potential debut cross-border bond that investors believe could receive a decent reception — if the company waits long enough to issue.

Brazilian low-cost airline Gol Linhas Aéreas Inteligentes said on Monday it had hired PJT Partners to advise it on its capital structure and liquidity, immediately provoking words of warning from Standard & Poor’s.