The Republic of Colombia is gearing up to price its euro-denominated bond issue of 2025 this week, while more Latin American corporate issuers have announced plans to sell notes in US dollars.
The Colombian government has hired Goldman Sachs, JPMorgan and Santander as joint bookrunners on the offering, according to a source familiar with the deal.
The sovereign will use the sale proceeds to fund a tender offer it announced late on Friday and any remaining amount will go toward repaying other debts, according to a prospectus. The government is looking to repurchase a portion of the $28.7 billion total outstanding on 15 series of global bonds in US dollars maturing between 2030 and 2054.
Colombia is also offering to buy back a portion of the EUR635 million ($736 million) outstanding on its euro-denominated 3.875% 2026 notes and COP1.92 trillion ($512 million) in peso-denominated 9.85% 2027 notes.
The transaction represents the government’s latest effort to improve its debt profile as higher public spending and a widening budget deficit unnerves investors. It has carried out two buybacks this year and raised $8.6 billion in the international market, including a sale of euro notes in September. The sovereign also entered into a total return swap with international banks as part of its strategy to reduce financing costs.
ELDORADO, VALE
Meanwhile, Brazilian pulp and paper company Eldorado and mining firm Vale began calling investors on Monday to pitch the sale of US dollar-denominated notes, according to a source familiar with the deals.
Eldorado is pitching seven-year notes and intends to use the proceeds to refinance debt that includes short-term and bilateral loans with financial institutions, according to the source.
Bradesco BBI, Citi and BTG Pactual are global coordinators, working along Banco do Brasil, Crédit Agricole, Itaú BBA and Mizuho as joint bookrunners on the Rule 144A/Reg S offering, the person added.
Vale, for its part, is pitching long 30-year hybrid notes and will use the proceeds for general corporate purposes that include replenishing its cash on hand, according to the source.
Citi, Bank of America, HSBC and JPMorgan are leading the offering as global coordinators, working with BTG Pactual, Morgan Stanley, MUFG, RBC Capital Markets, SMBC Nikko and UBS as additional bookrunners, the source added.
CGC
Compañía General de Combustibles (CGC) is the latest Argentine energy firm to head to the cross-border market. The company plans to raise up to $500 million in a placement in US dollars, according to a securities filing.
The company will start the bidding at $300 million and increase the size based on demand. Investor calls will begin on Tuesday, with Citi, Santander, Morgan Stanley, JPMorgan and Balanz Capital acting as joint bookrunners on the offering, it said Monday in the filing.
BCP Securities and Latin Securities are co-managers on the deal, it added.
CGC intends to use the proceeds to add to working capital, fund future acquisitions and refinance debt, the firm said separately in a prospectus.