Caribbean

Jamaican telecoms group Digicel has extended the early bird deadline of its distressed debt exchange as it talks to bondholders about its liability management plans.

Jamaican telecoms group Digicel is “undermining” its position with creditors by pushing ahead with a bond exchange that rating agencies have deemed as distressed, Fitch Ratings said.

Jamaica telecoms group Digicel saw its bonds slump after markets reopened on Tuesday as agencies slashed its credit ratings on the back of a bond exchange aimed at giving the issuer more time to deleverage.

Debt capital markets bankers covering Latin America say that it hard to convince the region’s issuers to return to bond markets even as investor sentiment seems to be stabilising.

Caribbean island nation Barbados said on Wednesday that views were “converging” over the possible size of its fiscal consolidation, setting the stage for negotiations with bondholders to begin.

Caribbean island nation Barbados said on Wednesday that views were “converging” over the possible size of its fiscal consolidation, setting the stage for negotiations with bondholders to begin.

Brazilian utility Cemig ended a three week hiatus in offshore Latin American bond issuance this week and was swiftly followed by the Dominican Republic as the two high yield borrowers raised a combined $1.8bn.

Defaulting Caribbean sovereign Barbados could end up forcing a 50% principal haircut on bondholders in its restructuring, said Exotix this week, as investors worried that an overly aggressive approach from the island nation would see it lose market access for the foreseeable future.

Defaulting Caribbean sovereign Barbados could end up forcing a 50% principal haircut on bondholders in its restructuring, said Exotix on Wednesday, as investors worried that an overly aggressive approach from the island nation would see it lose market access for the foreseeable future.

Caribbean island nation Barbados took bond markets by surprise last Friday by announcing a restructuring of all external debt, abruptly ending the hope that the new government — and its openness to the IMF — had brought to bondholders.

A decision by the new prime minister of Barbados to suspend all external debt payments sent the island’s bond prices down more than 50 points, stunning bondholders who were mostly not expecting to take the brunt of a long-term economic decline.

China Resources Land bagged Rmb4bn ($635.7m) from a two tranche Panda bond on Wednesday, marking its fifth outing in the market. But the issuer had to change tack at the last minute after investor demand built up for the longer-dated note.