Murilo Portugal has resigned as deputy MD at the IMF with immediate effect to become president of the Brazilian Banking Federation (Febraban). He takes over from Fabio Barbosa, also president of Grupo Santander Brasil. Portugal became deputy MD at the fund in December 2006. Between 1998-2005 he was executive director representing Brazil, Colombia, Dominican Republic, Ecuador, Guyana, Haiti, Panama, Suriname, and Trinidad and Tobago on the IMF’s executive board. He will stay at the fund as special advisor to the MD until early March. The IMF says it will shortly start the process to select a new deputy MD.
Yearly Archives: 2011
Posted inDaily Brief
Brasilena Eletronuclear Receives Financing Offer
Brasilena Eletronuclear, a subsidiary of Eletrobras, has received EUR1.5bn in financing from a consortium of banks, according to a finance official at Eletrobras. Societe General is the MLA, with BNPP, Credit Agricole, Santander, BBVA and CIC making up the rest of the syndicate, adds the official. The loan will fund development of a nuclear plant, Angra III in Rio de Janeiro. The maturity is heard to be for 30 years. The official declined to comment on the pricing of the loan. The financing still needs to be approved by the Brazilian government.
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Transelec Clinches Local Bonds
Chilean power transmission company Transelec has sold UF7.0m ($282m) in 3 series of inflation-linked bonds in the domestic market, it says. A UF2.5m 2016 bond priced at 99.60 with a 3.65% coupon to yield 3.74%. A UF1.5m 2032 tranche priced at 97.90 with a 4.05% coupon to yield 4.20%. A UF3.0m 2039 portion priced at 95.33 with a 3.95% to yield 4.24%. The 5-year fell within expectations of a 3.5%-4.0% yield. The 21.5-year also fell within expectations of 4.0%-4.5%, according to expectations of Transelec’s finance manager prior to the sale. The 28-year came in under a 4.0%-4.5% estimate. The 28-year tranche achieved a lower cost than the 21.5-year because it is non-callable. Scotia and Corpbanca managed the sale, which raises funds for 2011 capex and to refinance debt due in April.
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Even to Issue Local Bonds
Even Construtora e Incorporadora will issue BRL250m in 5-year senior unsecured debentures. Proceeds will be used to pay down BRL145m in debt coming due over the next two years. The move will extend the Brazilian home builder’s debt maturity schedule and finance its expansion plans. Itau is lead coordinator with Santander as bookrunner. The deal is expected to price March 10. Moody’s rates the bonds A2 on a national scale. Even has BRL1.7bn in net revenues. The issuance will increase leverage to around 48% total debt to capitalization.
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Supermercados Bond Expected
Chile’s Supermercados del Sur is expected to issue up to UF2.5m ($153m) in 4 tranches of local bonds today, according to a banker on the deal. The retailer is expected to offer a 4.10% 2015 UF-denominated piece, a 7.20% 2015 CLP-denominated portion, a 4.30% 2020 UF portion and a 4.70% 2028 UF piece. LarrainVial is leading the sale, rated BBB+/A on a national scale.
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BCP Looks to Asian Lenders
Banco de Credito del Peru BCP is heard to be in the syndication process for a $100m 3-year loan, according to bankers with knowledge of the transaction. Bank of Tokyo-Mitsubishi and Bank of Taiwan are said to be leading the deal, which is being syndicated to Asian lenders, according to market participants. BCP closed a 350m 3-year syndicated loan in October 2010, priced at 175bp over Libor, which it upsized from an original $300m. Participation came from Latin America, Europe, the US and some Asian banks, and the loan was for general corporate purposes, in particular to fund loan growth.
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Emgesa Sets Levels
Colombia’s Emgesa has communicated 8.75%-9.00% yield guidance on a new 2021 COP-denominated bond. The bond is expected to be $400m equivalent and price as soon as today. The power generation company, controlled Colombian energy company Empresa de Energia de Bogota, met investors in the US and London through Wednesday. Citi and Deutsche are managing that sale, rated BBB minus. Proceeds are expected to be used to help finance construction of the $840m 400MW Quimbo hydroelectric plant.
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CFE Prices MXP Dual Tranche
CFE issued a dual-tranche bond for MXP8bn Wednesday, in the first issue in the domestic market this year. The transaction was a re-opening of a December deal. A 4-year floating bond priced at 25bp over TIIE, the tight end of 25bp-30bp guidance, and 1bp tighter than the original issue. The MXP4bn tranche received MXP8.7bn in demand, according to a lead banker. A 10-year priced at 118bp, through guidance of 120bp-130bp over Mbonos, and 2bp tighter than the original transaction, according to bankers on the deal. The second tranche received MXP5.3bn of demand, according to a banker on it. Demand for both tranches came from pension funds, private banks and mutual funds. BBVA Bancomer, Banamex and ING were joint leads on the sale for the federal electricity company. The bonds are rated AAA on a national scale. Proceeds will go toward working capital and to refinance existing debt. The original deal priced December 2. The 10-year tranche was for MXP9.0bn, after total orders reached MXP14.6bn. The bonds priced to yield 7.96%, or Mbonos plus 120bp, in line with guidance, according to bankers on that sale. The 4-year was for MXP5.0bn, on MXP8.4bn in demand. That tranche priced at 26bp over TIIE, tight to guidance of 30bp.
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Safra Set for Tier 2 Capital
Banco Safra is out with UST plus 340bp guidance on a $500m 2021 Tier 2 bond, expected to price as soon as today. The level comes after mid-300s whispers and the Brazilian bank says it will not grow the issuance, according to investors. BAML, JPMorgan and UBS are managing the deal, rated BBB minus.
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Investors Pile Into BA Province
Investors placed nearly $3bn in orders for a $750m 10-year from Buenos Aires province, highlighting robust appetite for high yield LatAm. The province priced at 97.916 with a 10.875% coupon to yield 11.250%, the tight end of 11.250%-11.500% guidance. The bonds were heard trading only at around reoffer by the end of the day Wednesday, according to traders, who note a sour day for risk assets and a selloff in global equity markets. The 11.25% yield was considered attractive compared to the 2017 bond the province sold last year, which traded around 10% early Wednesday. “This has seen a lot of demand, as it comes at such a discount to where the other [2017] bond is trading,” says a participating New York-based EM portfolio manager. He notes that Argentina is a “consensus overweight” among EM funds at the moment. The B3/B province is considered one of the less solid Argentina credits, due to its heavy reliance on federal funds. The bond amortizes in equal installments in years 8, 9 and 10. Proceeds are marked for general budget purposes. BAML and Deutsche Bank managed the sale, holding on to the mandate from last year, when BA sold $550m in 2017s and retapped for $250m more. The City of Buenos Aires, an investor favorite among the nation’s sub-sovereigns, plans a 10-year bond expected in April. Neuquen province is expected with a $250m 10-year backed by oil royalties as soon as March.