S&P has raised the rating of Colombia’s Empresa de Energia de Bogota (EEB) to BBB minus from BB+, it says, bringing the utility into investment grade territory. The move follows improvement to EEB’s risk profile and greater diversification. “In our opinion, the consolidation of the business strategy of EEB and its geographic reach will result in continued growth in revenue and a strong and stable profitability. We believe that this will generate stronger cash generation and better financial indicators,” says S&P. The outlook is stable.
Yearly Archives: 2012
Posted inDaily Brief
Lupatech Names CFO
Lupatech has named Ricardo Ramos da Silva Mollo as CFO and investor relations officer, the Brazilian marker of parts for the oil industry says. He takes the place of Thiago Piovesan, who becomes planning and control director. Mollo has worked at Garantia, Safra and ABC Brasil, as well as Unibanco.
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Mexico Lands Udibono Syndication
Mexico’s government has sold MXP14.37bn ($1.09bn) in Udibonos through a syndicated bond sale, according to the central bank. The 2.0% coupon 2022s priced at 104.11 to yield 1.55%. The bonds are expected to reopen at periodic auctions beginning in 4Q. Bank of America Merrill Lynch, BBVA Bancomer, Banamex, HSBC and Santander managed the sale. In its previous syndication, Mexico sold MXP30bn in 2017 Mbonos in July.
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MG Closes Tax Receivables Securitization
Minas Gerais Participacoes (MGI), a holding company controlled by the state government of Minas Gerais, has closed the sale of BRL316m ($155m) in domestic bonds, according to the CVM. The tax-receivable securitization came in under a BRL400m target, though clinched an interest rate inside of a pre-set limit. The 2017 bond pays the DI+3.25%, inside of a 3.5% limit that had been set in May. The bonds are backed by a pool of back taxes owed to the state, which have been renegotiated with debtors in order to generate a stream of payments. Citi, Santander and ABC Brasil managed the sale, rated Aa2 on a national scale. MGI is 99% owned by the state, with minority holders including Cemig and the state’s development bank.
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Paccar Prices MXP Bond
Paccar Financial Mexico has issued a MXP1bn ($76m) bond, representing its first domestic Mexican issue since 2008. The 2015 floater priced at TIIE+40bp, in line with price talk of 35bp-40bp. Mutual funds, insurance companies and retail investors drove demand, which reached 1.5x, according to a person with knowledge of the sale. BBVA Bancomer and Banamex managed the deal, rated AAA on a national scale.
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PC Maker Acquires Brazilian Group
China’s Lenovo Group has agreed to buy Brazilian electronics maker Digibras, known by its CCE brand, it says, in a transaction valued at BRL300m ($147m). In exchange for 100% of Digibras, the Hong Kong based PC maker will issue 46.9m of its shares, at a price equal to the average share price 30 days prior to the completion date of the transaction, and make a cash payment bringing the total consideration to BRL300m. The cash consideration would be HKD287m ($37m, BRL75m) based on Wednesday’s HKD6.12 closing price. Further adjustments to the transaction value may be made based on net debt and working capital. Credit Suisse and CICC advised Lenovo. Digibras owns the Digibras Industria, Digiboard and Dual Mix units and posted revenue of BRL1.6bn in 2011.
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Pemex Set to Renew Revolver
Pemex is scheduled to hold a bank meeting in Mexico City today and another in New York Monday to renew a $1.25bn senior unsecured revolving credit facility, according to people familiar with the plans. The state-owned oil producer’s existing 5-year facility comes due this month, and is expected to be replaced with another 5-year revolver. Citi, Credit Agricole, HSBC, JPMorgan, Mizuho and Sumitomo Mitsui are bookrunners on the deal. Pemex is rated BBB/BBB/Baa1.
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Rossi Seeks Equity Injection
Brazil’s Rossi Residencial is planning to raise BRL500m ($245m) through a private share subscription, it says. The real estate developer plans to sell the shares at BRL4.50 each, based on the average price for the last 60 days minus an 11.3% discount. Shares closed at BRL5.07 Wednesday. Proceeds would strengthen the company’s capital position, amid a more pessimistic outlook for a Brazilian homebuilding sector that has expanded rapidly, but has seen slower sales in recent years. Rossi is discussing the transaction with potential investors, it adds.
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YPF Opens Local Sale
Argentina’s YPF has opened the offering period for up to ARP1.2bn ($258m) in 3-year local bonds, it says, as part of a ARP1.35bn sale that also includes short-term debt of up to 18 months. Pricing is set for September 12, the state-owned oil company says. The sale comes under a $1bn shelf, and is led by BACS, BBVA Banco Frances, Banco de Galica y Buenos Aires, Banco Macro, Santander Rio and Nacion Fideicomisos. Faced with large capex needs, YPF has indicated that it plans to sell up to ARP3.5bn in domestic bonds. YPF also plans to ask for approval to expand its debt program by $2bn, it says, and will put the matter to a shareholder vote September 13. The authorization would come in addition to the $1bn for which it is already authorized. The issuer is also preparing to engage international investors, with an eye on a possible issuance next year.
Posted inDaily Brief
Santander Mexico Launches, Aims to top $4bn
Santander Mexico has launched its IPO, aiming to raise MXP49.01bn-MXP56.61bn ($3.72bn-$4.30bn), in a sale valuing the bank at more than $17bn, it says. The Mexican unit seen as one of the crown jewels of the troubled Spanish bank has set September 25 for the pricing of 1.69bn shares, including a 15% greenshoe, at MXP29.00-MXP33.50 each. The deal is divided into an international tranche of up to 1.18bn shares in the form of ADRs, representing 80% of the total transaction, and a Mexican portion made up of 294m shares. At the maximum, Santander would float 24.9% of Santander Mexico. Bankers away from and on the deal say the region’s near-term ECM hopes have a lot riding on the deal’s success, in that a well-bid sale pricing at the midpoint or higher followed by strong aftermarket performance could restore issuers’ and investors’ confidence in LatAm deals. Proceeds from the sale, set to be Mexico’s largest-ever IPO, will be used for general corporate purposes. Santander, UBS, Deutsche Bank and Bank of America Merrill Lynch are global coordinators. Itau has been added to the joint bookrunner tier since the initial filing, joining Barclays, Citi, Credit Suisse, Goldman Sachs, JPMorgan and RBC. Santander, Banamex, BBVA Bancomer and HSBC are on the domestic portion. In Mexico, Mexichem is set to follow with an up to $1bn-equivalent October follow-on, via Banamex, HSBC, JPMorgan and Morgan Stanley. Cemex is also in the pipeline with an IPO of its ex-Mexico LatAm businesses in Colombia, for perhaps $750m-$1bn. In Brazil, used car dealer AutoBrasil plans to try its luck in the IPO market.