Yearly Archives: 2012

Gran Colombia Gold plans to raise $120m from the sale of units consisting of a gold-linked note and common share purchase warrants, it says. The Canadian miner operating exclusively in Colombia is raising funds for development and construction of projects at its mine in Segovia. GMP Securities is managing the sale, expected to close in October.

Brazilian rental car company Localiza plans to raise BRL300m ($149m) in domestic bonds, it says. A 2019 bond is expected to pay DI+0.95%, and amortize beginning in year four. Caixa and Banco do Brasil are managing the sale, done under the rule 476 restricted format. Localiza is rated AA+/Aa1. Earlier this year, Localiza tapped the debenture market for BRL500m.

Banco Colpatria will look to issue COP150bn ($84m) in 10-year subordinated bonds in Colombia’s domestic market, say sources familiar with the Colombian lender’s plans. The notes are expected to be sold on October 3, and will be inflation-linked. Colpatria, is self-leading the sale, rated AA+ on an national scale, blow the AAA senior rating. It last issued in February, selling COP150bn in 10-year subordinated notes paying inflation plus 4.64%.

Vessel-Log, a subsidiary of Brazil’s Tirunfo, is planning a BRL145m ($72m) debenture sale, Triunfo says. The transaction has received approval, but the timing and other details were not available. The deal is to be done in the rule 476 restricted format.

The Usina Ferreira Gomes hydroelectric project has added its name to the list of bond issuers targeting an infrastructure debenture, its controller Alupar says. The special class of debentures done under legislation approved last year allows special tax incentives for investors buying Brazilian domestic bonds whose use of proceeds is infrastructure. There were no additional details available, and an Alupar official declines to comment.

Alfredo Harp, the controller of Mexican retailer Grupo Marti, is planning to offer to purchase up to MXP1.58bn ($123m) in shares he does not own in the company, according to regulatory documents. The offer covers up to 133.9m shares, at a price of MXP11.80 each. The timing of the offer remains to be set. Banamex is managing. Marti shares were at MXP11.00 Friday.

LatAm equity funds saw net inflows of $846m and EM equity funds saw net equity inflows of $4.29bn during the week ended September 19, according to EPFR. In terms of performance, LatAm funds lost 0.14% during the week ended September 20, and are up 7.41% year-to-date, according to Lipper. EM funds rose 0.34% during the week, to bring them to a ytd gain of 11.43%. Global small and mid-cap funds fell 0.21% on the week, and have earned 14.74% ytd.

Peruvian retailer Maestro has raised $200m in its international DCM debut, getting close to $2bn in orders. Despite a small size and lack of familiarity with the credit, the 2019 NC4 bond was able to continue the trend of strong bids and aggressive pricing seen in the markets this month. The Ba2/BB minus bond priced at par with a 6.750% coupon to yield at the tight end of 6.875%-area guidance, revised from 7.125%-area. The bond was heard up around 2.0 points Friday afternoon. IFH Peru’s (BB minus/Ba3) 2019 offered the closest comp, according to the buyside, and had been trading around 6.0%. “This is aggressive pricing for such a levered company, but they are getting the benefit of the doubt,” says an EM investor following the sale. Starting from 3.6x as of midyear, Fitch expected gross leverage of 5.5x post-transaction, falling to 4.0x-4.5x by the end of 2014. The home improvement retailer is raising funds to address some $100m in debt and fund approximately $80m in capital expenditures, in addition to general corporate purposes. Maestro is implementing a PES545m ($209m) capex plan during 2012-2014. Bank of America Merrill Lynch and JPMorgan managed the transaction, with Scotia and Larrain Vial as co-managers. The issue was upsized from an originally planned $180m. Maestro is controlled by Enfoca, a Peruvian private equity fund, and has 20 stores across the country.

Promotora y Operadora de Infraestructura (Pinfra) has launched its equity follow-on, according to regulatory documents, setting an October 4 pricing date. The Mexican infrastructure firm is planning to sell 70.4m shares, including a 15% greenshoe, which would indicate an MXP4.97bn ($386m) sale at Friday’s MXP70.57 closing price. About 70% of the shares are secondary shares to be sold by members of the Penaloza family and various investment funds, with primary proceeds going toward general corporate purposes, including greenfield and brownfield construction. Pinfra had filed earlier this year aiming for a sale in the June-July window, but decided to wait until 4Q. Credit Suisse and JPMorgan are managing the international portion, and are joined by Banorte-Ixe on the domestic side. Founded in 1969 as Grupo Tribasa, Pinfra develops and operates road and port concessions and produces materials used in road construction. It has timed the sale to follow Tuesday’s scheduled pricing of Santander Mexico’s IPO, targeting more than $4bn, a deal which Mexico and all of LatAm are watching closely as an indication of equity appetite through the end of the year. Santander Mexico, heard already well oversubscribed as of Friday, it expected to benefit from abnormally strong EM and LatAm equity fund flows recorded last week that followed the European Central Bank and US fed announcements.

Pemex is weighing options for funding a MXP36bn ($2.8bn) natural gas pipeline project, and hopes to clinch financing by November, Mauricio Alazraki, Pemex’s treasury director, tells LatinFinance. It is still considering the type of instrument to be used, he says, with a likely 20-year tenor. The Los Ramones pipeline will extend for some 1,000 km through the states of Tamaulipas, Nuevo Leon, San Luis Potosi, Guanajuato, Queretaro and Zacatecas. Santander is Pemex’s financial advisor in the process.