Colombia

Banco Santander has become the 14th primary dealer in the domestic Colombian government bond market, said the finance ministry, representing the first expansion of the sovereign’s market makers since 2016.

Despite funding stresses in certain Latin American countries, bond markets will continue to help the region with its financing needs. For now, this eases the pressure for reform and fiscal consolidation, but issuers must eventually face up to political and social turbulence. Oliver West reports.

Banco de la República (BanRep), the central bank of Colombia, has elected a former board member as its next governor, in a move unlikely to signal any major changes in the bank’s policy.

Latin American power generation company EnfraGen debuted in the international bond markets on Wednesday, benefiting from the strong performance from the region’s last power sector issue to price inside where some investors were expecting — despite a leverage ratio of nine times.

Colombia’s finance ministry said on Wednesday evening that it had taken the “first step to entering the bond market for sustainable development” after Congress approved the issue of thematic bonds.

Latin American power generation company EnfraGen will look to sell $710m of split-rated 10 year senior secured notes this week, nearly three years after it postponed an earlier attempt at tapping bond markets.

Two corporate deals on Monday and a tiny tap from a Paraguayan beef exporter on Wednesday were all investors had to choose from in Latin American primary bond markets this week as issuance remains light ahead of the US elections next month.

Colombian natural gas distributor Promigas could return to bond markets a year after its debut as it mandated banks for a reopening of its 2029s.

Latin American bond bankers were receiving mixed messages from primary market activity this week as Colombian bank GNB Sudameris cancelled a proposed tier two deal but two other companies notched strong deals.

Colombia will become the first country to ever draw funds from an IMF flexible credit line (FCL), the Fund’s facility for its star pupils. In these exceptional times, Colombia should ignore any stigma associated with tapping IMF funding and be applauded for healthy pragmatism.

Colombian bank GNB Sudameris looked likely to price a Basel III-compliant tier two bond on Thursday at the second time of asking, but bankers said issuance windows were becoming narrower after another volatile day.

Colombia will become the first country to draw down on an International Monetary Fund flexible credit line (FCL), its instrument for top quality borrowers. The government is likely to use the loan — rather than bond markets — to complete its external funding needs.