Buyers for Lat-Am bonds abound; Namibia, Peru plan roadshows; Ukraine restructuring approved

By Christine Van Dusen

Atlanta, Oct. 16 – Latin American bonds saw frenzied buying on Friday as easing from the European Central Bank, as well as the anticipated delay in a rate hike from the Federal Reserve, boosted appetite for risk.

Even Brazil-based Petroleo Brasileiro SA, which has been facing a corruption scandal that has pummeled its bonds, traded better on Friday, a New York-based trader said.

Colombia’s Ecopetrol SA saw heavy demand on Friday and saw its prices rise, the New York trader said.

“There is still a lid on Brazil corporates, but the lid is a bit loose, so we are seeing bids creep higher,” he said.

In deal-related news, Namibia was preparing for a roadshow, set to depart on Oct. 19. The sovereign is marketing a dollar-denominated issue of notes.

Peru will set out on Oct. 20 for a series of investor meetings in Europe, a market source said.

A new issue of notes could follow, depending on market conditions. Taking a look at Ukraine, the Ministry of Finance this week announced that the restructuring of its sovereign and sovereign-guaranteed bonds – except for the $3 billion 5% 2015s owned by Russia – was approved by bondholders.

New bonds are expected to be issued next month, said Fyodor Bagnenko, a fixed-income trader with Dragon Capital.

“Meanwhile, corporates remained quite busy,” he said.

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