ING has appointed John Boyles as CEO of wholesale Americas and head of clients. He was previously ING’s head of structured finance, telecom and media finance and has been as the Dutch bank since 1996. He will report to Ralph Hamers, head of wholesale network and succeeds David Hudson.
Yearly Archives: 2008
Posted inDaily Brief
Vale, Xstrata Heard Inching Closer to Deal
The talks between Vale and Xstrata for a potentially $85bn acquisition of the Swiss mining concern are said to be on an upswing, and the two sides are seemingly closer to a deal than they ever have been, according to executives close to the matter. Vale and Glencore, the commodities house that owns 35% of Xstrata, are negotiating hard on two main fronts: the price Vale would pay and the details of a marketing agreement that would permit Glencore to sell some of its commodities. In other words, any deal would definitely include a marketing agreement of some sort. One Europe-based investor says rumors were floating around the market Wednesday morning that an agreement had been reached, but executives close the process said talks are still in progress. JPMorgan and Deutsche Bank are advising Xstrata. Glencore is heard to have hired Citi and Morgan Stanley while Credit Suisse is understood to be among Vale’s advisers. Meanwhile, invites are out to participate in the $50bn loan backing the transaction. At least seven banks have committed to tickets of up to $7.5bn each. Santander, HSBC, Credit Suisse, RBS via ABN AMRO, Lehman, Citi, and BNP are all heard participating. A 5-year trade piece is heard paying around 120bp over Libor, while a 7-year pays 140bp.
Posted inDaily Brief
Citi Bags $631m from Redecard Follow-on
Citi managed to sell 40.7m shares it owns in Redecard Wednesday at BRL26.00 apiece, resulting in gross proceeds of BRL1.06bn ($631m). This marked a small victory for Citi, which needed the cash to replenish its coffers. Had it sold the shares at Monday’s closing level Citi would have grossed BRL400m less. One equity investor at a shop in Sao Paulo not on the deal says the discount was smaller than expected and that the offer price ended up being higher than the BRL25.00 she had anticipated two weeks prior. “BRL26.00 is still a decent level, and is below the IPO price,” conceded the buysider, who says she heard the book 3x oversubscribed. Redecard’s IPO priced last July at BRL27.00. A FIG analyst at another shop in Sao Paulo says the stock may have risen Wednesday – against a 0.31% fall in the Ibovespa – after the removal of an overhang that depressed the price since the announcement of the follow on. Unibanco and Itau, the other two shareholders in Redecard, opted not to sell in this round because they found the stock undervalued, says the analyst. Citi, Unibanco and Itau led the offer.
Posted inDaily Brief
Brazil’s Anhanguera Returns for More Equity
Anhanguera Educacional, a for-profit education company based in the state of Sao Paulo, has filed plans to raise more equity capital through a mix of primary and secondary shares. The company, which raised $242m in a March 2007 IPO, has already spent the proceeds, and is coming back to replenish its coffers, says an executive close to the deal. Anhanguera’s strategy is to grow primarily through acquisitions, and to be a consolidator in the educational sector in Brazil. Credit Suisse, Merrill Lynch and Santander will lead the offering.
Posted inDaily Brief
Durango to Issue New Shares
Mexican paper producer Durango plans to raise MXP907.3m through a stock sale to existing shareholders. Shareholders have approved a proposal to sell 110.6m units at MXP8.20 each, and have 15 days to exercise the right. It last raised funds in October via a $520m bond issue, and has said it plans to repurchase some of its expensive bond debt in 2008.
Posted inDaily Brief
America Movil Enlarges Buyback Fund
Mexico-based telecom America Movil plans to increase its share buy-back fund by MXP40bn. The buyback proposal and a MXP0.20 dividend will be put to a shareholder vote on or before April 30.
Posted inDaily Brief
Scotia Set for Mexican RMBS Sale
Scotiabank Inverlat plans to sell MXP2.5bn in 2028 RBMS today. The notes are expected to price at 8.95%, according to a report from S&P, which gives the deal a AAA national-scale rating. The issue is the first from a MXP10bn shelf. The pool of 2,750 mortgages originated by Scotia comes from throughout Mexico, with just over a third from DF. Scotia’s own capital markets group is managing the sale.
Posted inDaily Brief
Mexico Resilient to US Crisis: S&P
S&P does not expect Mexico’s sovereign ratings to be affected by the downturn in the US and the resulting deceleration in GDP growth in Mexico. “The combination of macroeconomic stability, the development of domestic capital markets, and the timely approval of tax reform in 2007 should sustain market confidence and the current sovereign ratings during a period of sluggish economic growth in 2008,” says analyst Joydeep Mukherji. S&P expects Mexican GDP growth to decline to 2%-3% in 2008, depending upon the extent of the downturn in the US. Domestic demand should continue to spur the economy in 2008, even as net exports suffer due to US. FDI should also boost overall investment, even if it declines from the $23bn influx received in 2007, the second highest level received in Mexican history.
Posted inDaily Brief
Citi Tips Mexico’s PASA
Citi has upgraded Mexico’s Promotora Ambiental (PASA) to buy/speculative risk from hold/speculative risk, but lowered the target price to MXP46 from MXP47 a share. Upside potential comes from Promotora’s good results, reactivation in waste management concession bids and a solid CAGR in PASAS’ Ebitda during the next three years of 23%, versus 6% in its international peers, says Citi. The shop also cites good potential in services to Pemex and a 21% correction in the stock during the last four months. The 2008-2010 projections contemplate CAGR of 15% in sales, 23% in Ebitda and 50% in net income, according to the bank. “PASA’s strong balance sheet and its core business, waste management (counter-cyclical industry), should allow the company to meet its growth targets during the year, if a more complicated economic environment in Mexico develops,” the shop says.
Posted inDaily Brief
Venezuelan Banks Face Challenges: Fitch
Venezuelan banks confront significant challenges to deal with an unexpected downturn in the economy, according to Fitch. After three years of impressive recovery, the Venezuelan economy will experience moderate growth in the short and medium term due to limited public spending and the magnification of several distortions in economic variables such as exchange rates and prices, social polarization and inherent volatility of an oil-producing country. “As such, even if loan demand keeps its positive pace, a moderate increase in monetary liquidity and the restrictions on growth by highly leveraged banks suggest loan growth in real terms will be somewhat reduced, while the distorted set of interest rates and compulsory lending can also reduce loan expansion as a risk control tool,” the agency says. Under this scenario and current low capital and reserve levels, the challenges for the banks are expected to continue unless higher profits or a more prudent capitalization policy replenish the system’s capital base in the absence of an unexpected devaluation of the currency.