Peru

Two Latin American companies raised dollar funding this week while two stayed on the sidelines as bankers said broader market conditions affected appetite in the region.

Peru’s dollar denominated sovereign bonds dipped in secondary markets on Wednesday afternoon after president Pedro Pablo Kuczynski (PPK) resigned before a pending impeachment vote, but had recovered most of their losses by end of play.

Moody’s has warned that InRetail Shopping Malls’ plans to raise new debt — in part to fund an acquisition by a separate subsidiary of its parent company — were a 'distinct credit negative', as the Peruvian company plots investor meetings this week.

Latin American borrowers appeared willing to brave weaker markets this week as three issuers announced deals — though only two had been priced by Thursday’s close.

The UK Embassy in Peru and Bolsa de Valores de Lima (BVL), the Lima Stock Exchange, have launched plans for what would be the first green bond market in South America, following a similar initiative in Mexico.

Two Latin American companies on the path to recovery from precarious situations have found themselves somewhat stuck in their liability management efforts because of tougher conditions in new issue markets.

Peruvian agricultural company Camposol has cancelled a tender offer for existing notes after market conditions led it to delay a new bond sale, but Lat Am bankers are not overly pessimistic about prospects for primary markets.

Peruvian agricultural company Camposol could return to bond markets this week as it looks to capitalise on an improved rating to refinance expensive debt issued during darker days.

Peruvian lender Interbank will increase the size of its recently issued 2023s by nearly $285m after bondholders of its old 2020s agreed to switch into the new bonds.

Mexican non-bank lender Unifin Financiera is plotting a subordinated perpetual deal, according to bond market sources, after Peru’s Interbank became the latest Latin American financial name to issue on Wednesday.

Peruvian lender Interbank (Banco Internacional del Perú) is planning to raise $200m of new five year debt on Wednesday to become the first Peruvian borrower in the bond markets in 2018.

Inkia Energy, the Latin American power generation and distribution holding company, returned to the bond market on Thursday with a deal that divided opinion on relative value but performed strongly in the grey market.