Chile’s Agrosuper has raised UF1.5m ($70m) in the domestic bond market, according to a person familiar with the transaction. The 2017 bullet priced at 98.75 with a 3.50% coupon to yield 3.78%, or government bonds plus 159bp. IMTrust managed the sale, rated A+/AA minus on a national scale. Agrosuper had previously issued in December, selling UF5m in 3.80% 21-year bonds at a 4.78% yield through Banchile and LarrainVial.
Yearly Archives: 2012
Posted inDaily Brief
AutoBan Defines Debenture
Brazil’s AutoBan, a toll road operator owned by Companhia de Concessoes Rodoviarias (CCR) plans to begin marketing a BRL950m ($468m) debenture sale on September 15, it says. A BRL850m 2017 tranche pays up to 109.2% of the DI, and a BRL150m 2017 inflation-linked tranche pays a fixed rate set to the yield of the government NTN-B bond at the time of pricing plus up to 0.25%. The deal is able to be upsized to as much as BRL1.28bn. The exact interest rates are to be set during the bookbuilding process, which the issuer expects to wrap up by October 10. Proceeds will go towards debt repayment and projects. The issue qualifies as an “infrastructure bond,” or a local bond offering tax advantages to investors due to its use of proceeds. If AutoBan is able to price, it could be the first, though fellow road operator Rota das Bandeiras is also preparing a similar bond. Banco do Brasil, Caixa and HSBC are managing the sale, rated AAA on a national scale.
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Bancoldex Wraps up Domestic Issue
Bancoldex has raised COP700bn ($388m) in Colombia’s bond market, according to a source following the sale, getting nearly 2x demand. The development bank issued a COP100bn 2014 tranche at DTF+1.47%, a COP100bn 2015 tranche at DTF+1.59%, a COP261bn 2019 tranche at IPC+3.87% and a COP239bn 2022 tranche at IPC+4.02%. The bank self-managed the sale, rated AAA on a national scale, with a group of other brokerages.
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Brazil Adds to Bond Issue
Brazil has added $100m to its 2023 bond sale through a greenshoe aimed at Asian markets, it says, bringing the total size to $1.35bn. It sold $1.25bn of the bonds Wednesday, pricing at 99.456 with a 2.625% coupon to yield 2.686%, or UST+110bp. BTG Pactual and Deutsche Bank managed the sale, rated Baa2/BBB/BBB.
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Chilean Bank Debut Lures Buyside
Chile’s Banco de Credito e Inversiones (BCI) raised $600m in its first-ever dollar bond sale, with investors putting in for $3bn in orders. The 2017 was one of three issuances Thursday, in what has been a busy week for cross-border sales. The A1/A rated lender got the large demand despite tightening to UST+245bp yield from whispers of mid-to-high T+200bp. “The bank offered some concession, which isn’t bad for a 5-year single A name which is considered one of the largest banks in Chile,” says a New York-based EM investor following the transaction. The bond priced at 99.426 with a 3.000% coupon to yield 3.125% or UST+245bp. The bonds were up nearly a point in the grey, according to an investor. Though difficult to comp, leads were heard looking at a Banco de Estado de Chile (Aa3/A+) as a general reference point. Banco Estado de Chile’s 3.875% of 2020 bond, sold in February, traded at around 3.0%, or UST+140bp, Thursday. “BCI is a cash substitute as we are barely getting 3.0%, but there is demand for high-grade issuers and we are comfortable with the credit despite tightening,” says a participating EM investor. The issuer likely paid above what it might in the domestic market, where it is a frequent issuer, but gains size and diversity, according to people following the trade. Citi and JPMorgan managed the sale, which followed a US and European roadshow. BCI had planned a cross-border sale in 2010 but postponed in favor of a local market deal. BCI’s most recent issuance was a MXP1bn ($79m) 2013 bond in Mexico’s domestic bond market. More than $6.75bn has been issued in the cross-border market this week, making it one of the busiest since the first quarter. “We have to catch up,” says a LatAm DCM banker, noting that the strong issuance should continue through at least the end of the month, barring abnormal news from Europe. Mexichem is heading the list of names that could appear next week.
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Digicel Ups Tender
Digicel has removed the limit on the tender offer for its 2015 bonds and will buy back any and all of the $1.0bn outstanding, up from an original $245 limit. The move was expected, given that the Caribbean telecom upsized its bond sale Wednesday to $1.5bn from $700m. The new 2022 NC4 bonds raise funds for the liability management operation, which targets the senior $1bn 2015s as well as $415m of 2015 toggle notes. Digicel is offering $996.25 per $1,000 principal of the 2015 toggle notes and $995.00 per $1,000 principal of the 2015 senior notes. In each case, holders accepting before September 18 receive an additional $30 per $1,000. Citi is managing the tender offer, which expires October 2.
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Inmet Moves for Panama Gold
Inmet Mining plans to make an offer to acquire all of the outstanding common shares of Petaquilla Minerals, a Panamanian gold mine operator, for CAD112m ($110m), it says. The Canadian miner active in LatAm is offering CAD0.48 cash, or 0.0109 Inmet shares, per Petaquilla share. The proposal would contemplate a spinout of Petaquilla’s assets in Spain to Petaquilla holders, allowing them to keep the potential upside of Petaquilla’s only asset outside Panama. Assuming the spinout, that offer represents a 37% premium to the Petaquilla closing price on Wednesday and a 30% premium to the 20-day average price. The offer is open for 35 days and requires acceptance from 50.1% of Petaquilla holders. Dundee is advising Inmet. Inmet is developing the $6.2bn Cobre Panama copper-gold project, which is adjacent to Petaquilla’s Molejon gold mine.
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Mexichem to Meet Bond Investors
Mexichem is preparing to meet investors ahead of a possible debt sale, according to people following the process. The Mexican chemical producer is scheduled to meet investors Monday and Tuesday in London, New York, Los Angeles and Boston, with a 144a/RegS deal potentially following. Citi, HSBC, JPMorgan and Morgan Stanley are managing. Mexichem is rated Ba1/BBB minus. Coming off of this year’s acquisition of Dutch pipemaker Wavin, it had previously indicated plans to raise up to $1bn from the bond market and up to $1bn from the equity markets. The same quartet of banks is handling the equity follow-on, which has been filed in Mexico and awaits launch.
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Pemex Launches Revolver Renewal
State-owned oil producer Pemex has launched a 5-year $1.25bn senior unsecured revolving credit facility, to renew an existing facility of the same size, according to people familiar with the process. The unfunded transaction offers commitment fees of 45bp and lead manager tickets of $75m at 70bp, and would pay Libor+115bp if used. More than 25 financial institutions attended a bank meeting Thursday in Mexico City, with a second to be held Monday in New York. MLA spots were by invitation only, with BBVA joining for $100m ahead of the meeting. Credit Agricole, HSBC, JPMorgan, Mizuho and Sumitomo Mitsui are bookrunners. Pemex is rated Baa1/BBB/BBB.
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Peru Holds Rates
Peru’s central bank kept its reference rate at 4.25% Thursday, in line with market expectations. Goldman Sachs pointed out ahead of the decision that the rate had remained unchanged since May 2011. “The MPC is likely to sound relatively comfortable with the inflation outlook, expressing confidence that inflation will converge to within the target band during the remainder of the year despite what it perceives to be a weather-driven ‘temporary’ surge in agricultural commodity prices,” the bank says.