Ferreira Gomes Energia, a unit of Alupar Investimentos, has raised BRL150m ($83m) in the domestic debenture market. The 2013 bond pays 115% of the DI rate. Itau managed the sale, done under the rule 476 restricted format. The issuer builds and operates the 250 megawatt Ferreira Gomes hydroelectric plant in the city of the same name in the northern state of Amapa.
Yearly Archives: 2011
Posted inDaily Brief
Bottler Gets BRL Debenture
Companhia Maranhense de Refrigerantes, a Coca-Cola franchisee in Brazil’s northeast, has closed a BRL350m ($195m) local bond. The 2018 bond pays the DI+2.15%, and amortizes monthly following a year grace period. Bradesco managed the sale, done under the rule 476 restricted format.
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Essal Opts for Share Sale
Chile’s Essal plans to sell shares, allowing government entity Corporacion de Fomento de la Produccion (Corfo) to reduce its 45% position in the water utility. The sale of 387.7m secondary shares would essentially be an IPO, as Essal shares are illiquid. Corfo had also been considering a direct sale of a stake through an M&A deal, as it looks to get its position down to 5%. This would mimic what it did earlier in the year with its Aguas Andinas, Essbio and Esval, as part of a broad government plan to sell assets to help with reconstruction costs from the 2010 earthquake. The offer period closes December 15, with allocation expected the following day. Banchile, Bank of America Merrill Lynch and IMTrust are managing.
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Fitch Rates Rio
Fitch has assigned a BBB rating to the City of Rio de Janeiro, citing the federal government’s role as the city’s main creditor and Rio’s 1999 refinancing agreement, among other factors. Rio has improved its debt profile with the help of a 2010 World Bank loan and had consolidated debt equivalent to 63% of current revenue in 2010, according to Fitch. The outlook is stable.
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Globo Sees Upgrade
Globo Comunicacao e Participacoes has seen its foreign and local currency IDR upgraded to BBB+ by Fitch. The agency cites the Brazilian media company’s solid financial position and business profile, as well as advertiser relationships and industry growth as factors for the upgrade. In September, Moody’s upgraded Globo to Baa2 from Baa3, with a stable outlook. It cited its ability to diversify into higher margin content, greater transparency and better corporate governance standards. The Fitch outlook is stable.
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Infonacot Prices MXP Securitization
Mexican state-run lender Instituto Fonacot has issued MXP1.665bn ($122m) in 3-year bonds. The transaction was 2.23x oversubscribed and priced at TIIE+65bp after generating some MXP3.6bn in demand. Scotia and BBVA Bancomer managed the transaction, rated AAA on a local scale. Infonacot last visited the local market in 2010, paying TIIE+39bp on a 3-year bond, via the same leads.
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ISA Taps Domestic Market
Colombia’s ISA has sold COP300bn ($153.8m) in local IPC-linked bonds. A 12-year pays 4.47% and a 30-year 4.84%. The sale saw demand of nearly COP777bn. Citi, Corredores Asociados, Correval and Interbolsa managed the deal, rated AAA on a national scale.
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Luxottica Buys Brazilian Eyewear Maker
Italian luxury eyewear company Luxottica is moving to buy Brazilian eyewear company Grupo Tecnol, in a deal that gives it a foothold in a growing market. The company, which sells top brands such as Persol, Oliver Peoples and Ray Ban eyewear, will initially buy an 80% stake in Tecnol, with the remaining 20% to be acquired over a period of 4 years at pre-determined prices. The company estimates Tecnol’s enterprise value at EUR110m ($148.1m), but Luxottica officials declined to give additional information about the actual amount of the transaction, its valuation metrics or the advisors involved. The deal is expected to close in early 2012. Brazil’s growing middle class is an attractive client base for luxury brands and the primary reason for Luxottica’s foray into that market. Luxottica estimates that the South American country could soon become one of the top five markets for its wholesale division. Tecnol is a leader in the Brazilian eyewear business with net sales that reached the equivalent of EUR90m ($121.2m) in 2010, a compound growth rate of 14%.
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Pemex Sees GDN Success
Mexico’s Pemex generated sufficient demand Thursday to double its targeted MXP5bn size to sell MXP10bn ($734m) in a debut 10-year global depository note (GDNs), marking the first corporate to issue under this format. With both foreign and local accounts tugging at leads sleeves, the borrower was not only able to price in line with its local curve, but come at a much larger size than it would typically achieve in the domestic market. “The big question was whether the bonds were going to come wider than the local certificados bursatiles, (but). the M+135bp seems to be line with local pricing,” says a rival banker. The government controlled oil company issued the maximum authorized, pricing the notes at par to yield 7.65% or Mbonos+135bp, in line with MBonos+135bp-140bp guidance. At least 60-70% of participation came from foreign investors who generated about MXP5bn in demand, with another MXP8bn coming from locals. “The structure makes a lot of sense,” says the banker. “You combine both investor bases, locals and foreigners, and get the ability to issue in size at no extra costs. It would be difficult to do MXN10bn 10-year in a pure local bond.” Citigroup is serving as depository bank for the local Mexican transaction, rated AAA on a local scale. Settlement is scheduled for December 7. HSBC, Morgan Stanley and Santander managed the sale.
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Peru’s BCP Strikes Deal with Colombian Brokerage
Banco de Credito del Peru has agreed to pay $76m for a 51% stake in Colombian brokerage Correval. Under the deal, Correval was estimated to have an enterprise value of $150m, Correval spokesman Mario Alejandro Nieto tells LatinFinance. Nieto says that Correval which was advised by JP Morgan, conducted a year-long negotiation process that finally reached fruition this week. Nieto could not offer any details on the valuation or whether the transaction was paid for fully in cash. BCP officials could not be reached for more details. Credicorp, the owner of BCP, said in a statement that MILA, the integrated market created between Peru, Chile and Colombia has prompted the financial institution to look for opportunities beyond its borders.