Chilean auto lender Forum is readying an approximately UF1m ($43m) local bond issue this week, says a person familiar with the process. The company can choose from a 2.5-year bullet in pesos with a 6.15% coupon, a 5-year bullet in pesos with a 6.3% coupon, a 2.5-year bullet in inflation-linked UFs with a coupon of 3.3% and a 5-year bullet in UFs with a 3.3% coupon. Banco Estado de Chile is managing the issue, rated AA+/AA on a national scale.
Yearly Archives: 2011
Posted inDaily Brief
Colombia Holds Rates
As expected, Colombia’s central bank has elected to maintain the country’s benchmark interest rate at 4.75%. In its communique, the bank cites continuing international volatility, an acceleration in domestic credit growth and inflation that should finish the year at 4%. The bias is still for keeping the rate unchanged for longer or a possible hike in the future if necessary, Nomura says.
Posted inDaily Brief
EM Debt Takes Hit for the Week
A total of $217m flowed out of EM bond funds during the week ended December 14, according to EPFR. The class saw a 1.10% loss for the week ending December 15 for a 2.25% increase ytd, according to Lipper. Global income funds fell 0.38% over the period, but are still up 4.46% ytd. International income funds were down 0.85% for the week, but have gained 4.44% ytd.
Posted inDaily Brief
EM Equity Suffers Outflows
EM equity funds hemorrhaged $2.2bn during the week ended December 14, according to EPFR, including $280m from LatAm funds. In terms of performance, EM equity, fell 3.92% during the week ending December 15, and is down 21.77% on the year, according to Lipper. Similarly, LatAm funds lost 2.99% on the week, and have dipped 22.71% ytd. Global small and mid-cap funds tumbled 3.2% on the week, and have slipped 15.46% ytd.
Posted inDaily Brief
Essal Pulls Plug on Equity Sale
Corporacion de Fomento de la Produccion (Corfo) pulled the plug on an $80m-$90m offering of shares in water utility Essal after the sale process failed to clear a minimum floor price. The government financial entity is looking to sell 40% of Essal to get its position down to 5%, and had been planning to place 387.7m secondary shares at CLP90-CLP100 per share. It was to be repeat, though at a smaller size, of what Corfo did earlier in the year with its positions in Aguas Andinas, Essbio and Esval, under a broad government plan to sell assets to cover reconstruction costs from the 2010 earthquake. It is not known if Corfo might seek an M&A transaction for the stake, a move it was heard considering before electing a follow-on sale. Banchile, Bank of America Merrill Lynch and IMTrust were managing.
Posted inDaily Brief
Inbursa Talks MXP Price
Mexico’s Banco Inbursa is heard targeting a TIIE+15bp-25bp price for an up to MXP3bn ($216m) issuance of 2-year floating rate bonds. December 21 is the tentative issuance date, market conditions permitting. The bank originally had plans to issue up to MXP6bn of 5-year floating rate bonds earlier this year. Proceeds will be used to fund bank operations. HSBC and Inbursa are leading the transaction, rated AAA on a local scale. Inbursa last issued in July, pricing a MXP4.9bn 2014 bond at TIIE +20bp via Actinver, BAML, Inbursa and Santander.
Posted inDaily Brief
Kroton Adds University for BRL1bn Plus
Brazil’s Kroton Educacional has agreed to acquire Uniao Norte do Parana de Ensino (Unopar) for BRL1.3bn ($701.8m), using a combination of debt and newly issued shares. In the first of a two-phase acquisition, Kroton will buy an initial 80% stake in the university operator with an upfront payment of BRL650m. An additional BRL260m payment will come before March 14, 2012, and a final installment of BRL130m will be paid in a year’s time. Kroton will finance a portion of this with a BRL550m credit line from Banco Bradesco, and the rest from a portion of a 240m share sale at a price of BRL2.50 per share. In the second phase of the acquisition, Kroton will purchase the remaining 20% stake in the company in exchange for 13.88m in newly issued Kroton shares that will represent 10.32% of the company. Located in the state of Parana, Unopar claims to be one of the country’s largest universities, with 150,000 students, including those involved in distance learning programs. Kroton retained Itau to advise in the transaction. Kroton and other education specialists such as Anhanguera and Estacio have resorted to equity issuance this year as a means to expand their presence in an industry that is considered one of the hottest in Brazil.
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Medellin Names New EPM CEO
The mayor of Medellin has named Esteban Calle as CEO of Empresas Publicas de Medellin (EPM), replacing Federico Restrepo. Calle, currently a portfolio manager with BMO in Toronto, will take over January 1 at the Colombian utility, when Restrepo steps down. Calle was previously secretary of labor for the state of Antioquia, and was a banker at Corfivalle and Chase Manhattan Bank.
Posted inDaily Brief
Schahin Closes Platform Loan
Brazil’s Grupo Schahin has closed a $692m syndicated loan being used to buy twin deepwater drilling platforms known as Black Diamond. The loan comprises a $350m 12-year, Kexim-financed tranche that came with a margin of Libor+310bp, and a $342m 10-year commercial loan, whose margins step up every 3-years, starting at Libor+270bp and ending at +290bp.The funds, borrowed through an SPV called Arisaru Drilling, will fund the purchase of the platforms, to be chartered to Petrobras. The project cost will be covered 80% by debt and the rest by equity. WestLB, Mizuho and Standard Chartered led the deal, with participation from KFW, EDC, Mitsubishi UFJ Lease and Finance, Siemens Financial, and Cordiant.
Posted inDaily Brief
Banco de Bogota Loan Approaches Finish Line
Banco de Bogota is expected to wrap up a $500m 3-year loan today after bringing in a total of 12 participating banks. The borrower is keeping the $500m size despite having already raised $600m this week through an upsized 5-year cross-border bond. The bulk of the proceeds from both transactions will take out a 1-year bridge used to acquire BA-Credomatic in Central America last year. Citigroup, HSBC and JPMorgan led the loan, the bond and the original bridge. Another 9 banks are expected to sign up to the loan. This group is heard to include international institutions as well as several regional banks.