Brazil’s PDG Realty is preparing a BRL200m RMBS in the domestic market using the Certificados Recebiveis Imobilarios (CRI) structure, it says. The 8-year deal is set to be divided into two tranches, the first paying 107% of the DI rate, and the other paying the TR inflation rate plus 10.15%. The size of each tranche is still to be defined. The issue size could be increased to BRL300m. The transaction includes 667 mortgages. Itau is managing the sale. The deal is expected to close by the end of February, according to a PDG official.
Yearly Archives: 2011
Posted inDaily Brief
Barclays DCM Head Steps Down
Carlos Mauleon, head of LatAm DCM at Barclays, is leaving the firm today. It is unclear why he is leaving, or where he is going. A spokesman for Barclays declined to comment. Mauleon was appointed head of LatAm DCM at the UK bank in 2001. He was subsequently also given the title of head of LatAm investment banking. Mauleon was previously head of LatAm fixed income capital markets origination at Chase. Before that he was a senior VP at Lehman.
Posted inDaily Brief
Correction: Montes del Plata to Build $1.9bn Pulp Plant
A January 20 Daily Brief entitled “Montes del Plata to Build $1.9bn Pulp Plant” contains an error regarding timing of the project. The new mill is expected to be operational by the end of the first quarter of 2013.
Posted inDaily Brief
QG Launches IPO
Queiroz Galvao Exploracao e Participacao, the oil E&P unit of Brazilian construction group Queiroz Galvao, has started investor meetings for an IPO. Queiroz plans to sell 69.3m primary shares at BRL23-BRL29, which would generate proceeds of BRL1.8bn if priced at the midpoint. A 15% greenshoe and 20% hot issue of secondary shares is also possible. Itau is lead coordinator on the sale, with BAML and BTG as bookrunners. The operator generated BRL225.1m in Ebitda through the first 9 months of 2010, up from BRL50.2m for the corresponding period in 2009, and BRL117.6m for the full year 2009, according to its filing. Some 70%-80% of the proceeds will go to the acquisition of new blocks, and the remainder to exploration in its existing blocks. Queiroz filed in November before opting to wait until this year after peers HRT struggled initially in the aftermarket before recovering and Karoon Gas postponed a float at the last minute.
Posted inDaily Brief
Banco de Chile Approves Cap Increase
Shareholders of Banco de Chile have approved a $500m capital increase to boost the balance sheet. The raise was first reported in December. The bank had proposed raising the funds by means of the issuance of cash shares that must be subscribed and paid at the price, term and other conditions agreed to at an extraordinary shareholders meeting.
Posted inDaily Brief
ICA Seeks Perp
Mexico’s ICA plans to meet investors next week ahead of a dollar denominated perpetual bond issue, according to investors. The builder and engineer is planning a two-team roadshow. Monday through Thursday, one team will meet investors in Singapore, Hong Kong, Switzerland and London. A second team will begin Tuesday in Boston and New York. BAML, MS and Santander are managing the deal. ICA has been an infrequent user of the bond markets in recent years. Its last cross-border bond deal was a $150m 5-year in 1996, according to Dealogic data.
Posted inDaily Brief
Braskem Hits Road
Braskem is set to meet investors next week. The petrochemical producer plans to begin meetings in Europe on Wednesday, January 26, according to investors. Credit Agricole, Deutsche, and Espirito Santo are managing the roadshow. The Ba1/BB+ issuer had been thought last year to be a candidate for both Euro and BRL-denominated issuance. While the global BRL trend that took hold late last year has yet to be revived in 2011, Banco do Brasil has demonstrated this month strong European demand for Brazilian exposure. Braskem’s last bond was a $450m 7.375% perpetual NC5, sold in September through Deutsche Bank, HSBC and Itau.
Posted inDaily Brief
CIE Readies Brazil Spinoff
More than 9 months after initially filing, Spanish auto parts manufacturer CIE Automotive has launched an IPO for its Autometal unit on Brazil’s stock exchange, according to regulatory documents. Autometal began meetings Wednesday and plans to price February 3. It is set to sell 31.5m shares at BRL17-BRL21, which would bring in BRL599m if done at the midpoint. A 15% greenshoe and 20% hot issue of secondary shares is also possible. Santander is lead bookrunner, along with Credit Suisse, JPMorgan and Itau as bookrunners. Autometal claims to have doubled in size from 2005-2009, and posted Ebitda of BRL234.7m in the first 9 months of 2010, up from BRL151.1m in the corresponding period in 2009, and BRL215.3m in full-year 2009.
Posted inDaily Brief
BR Properties Retaps Perp
BR Properties has reopened its perpetual bond for $85m, it says. The 9.0% NC5 bond reopened at par. Credit Suisse and Itau managed the deal for the Brazilian mall producer. The Ba3/B+ bond was originally sold for $200m in October.
Posted inDaily Brief
Sugar Bond Set for Debut
Grupo Virgolino de Oliveira (GVO) is set to price its debut dollar bond today. The Brazilian sugar producer and largest member of the Copersucar cooperative has set guidance of 10.25%-10.50%. The B3 rated 2018 NC4 is expected to raise $250m after finishing investor meetings Thursday. BTG Pactual, Credit Suisse, Itau and Santander are managing the sale. GVO is a member of the Copersucar cooperative. The investor says this helps mitigate concerns about price volatility and small issuer liquidity in a commodity exporting business. Copersucar acts as a guaranteed buyer for co-op members’ production, reducing some of the risks of the commodities market. The company was founded in 1921 and operates 4 mills in Sao Paulo state.