This is the last Daily Brief until January 3 2010. Happy holidays to all our readers.
Yearly Archives: 2011
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Banco Multiva Preps MXP Issue
Mexico’s Banco Multiva has filed a shelf to issue up to MXP5bn ($361m) in bonds It does not give details about the timing or exact amount of the first sale. Proceeds of the deal will be used to fund bank operations. The issuances under the program will be self-led.
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BBVA Chile Sees MXP Bond in 2012
BBVA Chile is now targeting early next year for its entrance into the Mexican bond market, a deal it had aimed to do this month, says a banker on the deal. The bank hopes to raise MXP1.5bn ($111m) in 3-year floating rate bonds, targeting pricing of around TIIE+60bp. Chilean peer Banco de Chile recently priced a MXP1.5bn 3-year at the same level. BBVA Chile would become the fourth Chilean issuer to tap Mexico’s domestic market, and is looking for an alternative source to raise funding for the bank’s operations. BBVA Bancomer is leading the transaction, rated AAA on a national scale.
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Brazilian Retailer Returns
Brazilian retailer Marisa Lojas has issued a BRL350m ($188m) 2016 bond that was priced at 111.20% of DI, in line with expectations. The bond amortizes in years 4 and 5. BB Banco de Investimento led the transactions.
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Cencosud Names Retail Finance Head
Patricio Rivas de Diego has been named head of the retail finance division at Chilean retailer Cencosud following the departure of Roberto Pirozzi Alonso. Marcelo Reyes Sangermani will step in for the time being as corporate risk manager, taking over Rivas de Diego’s previous position.
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Citi Leads Loan Banks
Citi leads the LatAm loan tables heading into the last week of the year, according to Dealogic data. The bank had booked $4.05bn in volume from 20 deals through December 16. BBVA comes second with 15 deals worth $2.73bn, and HSBC third with $2.46bn from 13 transactions. The region had seen a total of $48.04bn from 138 loans, up from $39.90 from 140 deals at this point last year, marking the highest volumes seen since 2007. Global loan volume reached $3.74trn in 2011, up 27% on 2010.
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Fitch Revises Bonsucesso Outlook to Negative
Fitch has revised the outlook on Brazilian mid-tier bank Banco Bonsucesso’s B+ to negative from stable. The agency cites lower profits and further pressures on the bank’s bottom line from new accounting rules. Spreads have also been hurt by higher funding costs, which impacted its core business of payroll deductible loans. . “Reduced dependency on payroll lending is important, but … competition in this segment is also intense and delinquency ratios there are greater, which could cause higher provisioning expenses,” the agency says. That said, Bonsucesso’s credit quality is slightly better than its peer average. Core capital/total risk weighted assets stand at around 11% and the agency expects ROE to be close to 10%.
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Fleury Taps Local Market
Brazilian medical services company Fleury has raised BRL150m ($80m) in the domestic bond market through a 2016 that pays DI plus 0.94%. Bradesco acted as lead on the deal. Fleury is raising funds to finance acquisitions and expansion.
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Goldman Poised to Win M&A Race
Goldman Sachs is close to winning the top spot for the year on the LatAm M&A tables, according to Dealogic data. This marks an interesting turnaround for a bank that failed to even make the top 10 during the same period in 2010. Year to December 16, the US bank booked $27.02bn in volume from 30 transactions, ahead of Citi’s $24.86bn from 30 deals, BTG Pactual’s $22.49bn from 43 transactions, and Itau’s $22.43bn from 43 deals. Last year’s leader Credit Suisse has slipped to fifth, but nevertheless continues to lead in wallet, bringing in $99m in M&A fees and beating JPMorgan ($60m) and BTG Pactual ($45m). Credit Suisse also led in total investment banking fees, booking $213m in that space, ahead of JPMorgan’s $173m and Citi’s $151m. This year, the region has seen total M&A volumes of $153.23bn from 1,591 deals. That is less than the $245.62bn in volume generated last year, but higher than the 1,385 transactions closed in 2010. Global M&A volume hit $2.70trn in 2011, up slightly from 2010. That compares to $709.6bn for all of emerging markets and $524,1bn from Asia Pacific ex-Japan.
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High Spreads Put Chilean Issues on Hold
Several Chilean issuers are holding off domestic bond transactions until next year in the face of comparatively high spreads. For instance, Caja de Compensacion La Araucana is now targeting next year for a CLP40bn ($77m) 5-year bond, which had been expected as soon as December. Like other Chilean issuers, La Araucana has decided to wait until next year with the hope that it can lock in cheaper pricing then. As the company doesn’t have a pressing need for the funding, it can wait, says a person familiar with the process. BCI is managing the sale. Araucana is rated A on a national scale. Quinenco has also postponed its up to UF4.65m ($200m) local market bond offering, which was previously expected to price by month’s end. It is instead looking at the beginning of January, says a person knowledgeable about the transaction. The holding vehicle for the Luksic family is preparing a 7-year bond of up to UF2.3m in size with a 3.5% coupon and 2-year grace period, and a 21-year bond of up to UF2.3m with a 4% coupon and an up 15-year grace period. It will use the proceeds for its investment. Banchile and BBVA are managing.