Brazil’s Even Construtora e Incorporadora plans to raise BRL150m ($74m) in the domestic bond market, it says. The developer’s 2017 debentures are expected to pay the DI+1.6% and amortize in equal parts in each of the final three years. Caixa Economica Federal is managing the sale, done under the rule 476 restricted format.
Yearly Archives: 2012
Posted inDaily Brief
EcoRodovias Defines Debentures
Ecorodovias has started marketing a BRL800m ($392m) domestic bond sale, it says, expecting to finalize pricing by mid-October. The road operator plans a 2018 tranche paying the DI plus up to 1.25% and amortizing in equal parts in each of the final three years. An inflation-linked 2019 pays up to 6.50% and amortizes in equal parts in each of the final two years. An inflation-linked 2022 pays up to 6.85% and amortizes in equal parts in each of the final three years. The sale could be upsized by as much as BRL280m, with final terms set during the bookbuilding period that should begin by the end of the month. Proceeds will refinance existing debt and fund working capital. Itau, BTG Pactual and Bradesco are managing the sale, rated AA+ on a national scale.
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GBM Clinches Infrastructure CCD
Grupo Bursatil Mexicano (GBM) has closed on a MXP750m ($57m) certificado de capital de desarrollo (CCD) transaction, representing the first close of a fund targeting MXP3.75bn, it says. The remaining 80% is to be funded through capital calls. The brokerage operator and fund manager’s 10-year deal will target investment in communications, water, transportation, oil, power and renewable energy projects. Investors are to receive their initial investment plus up to a 10% preferred return, with additional proceeds being divided 80% to investors and 20% to GBM. GBM has a track record of private infrastructure investments in Mexican companies including Grupo Mexico, TMM and Pinfra, and counts former SCT undersecretary Manuel Rodriguez as the general manager of the fund. GBM’s brokerage unit managed the sale.
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Investors Crowd into Bancolombia Tier 2
Bancolombia and Brazil’s Vale became the first LatAm issuers to hit the DCM in what should be an active September, with the Colombian bank raising $1.15bn on the back of $7.2bn in orders, according to bankers on the deal. Capitalizing on a scarcity value of Colombian credits, the Baa3/BBB minus lender priced a new 2022 Tier 2 bond at 99.421 with a 5.125% coupon to yield 5.20%, or UST+362.6bp, the tight end of 5.375%-area guidance that followed initial 5.5% talk. The bond was trading up about 0.75-0.90 points in the grey Tuesday afternoon, according to an investor. “The deal left little on the table but it was a win-win situation for the issuer and investors,” says a participating NY-based EM investor who saw the deal price flat to the levels on the bank’s 2020 Tier 2 bonds. Bankers on the deal spotted the 2020s prior to announcement at levels of UST+371bp on an interpolated basis, which would indicate a negative concession of about 8bp. “Good trade, no concession and smart timing,” says a banker away from the deal. Some 390 accounts participated, according to a banker on the deal. The transaction is the first from a $1.2bn debt program approved last week. Bank of America Merrill Lynch, Citibank and Morgan Stanley managed the sale, which can be increased by up to $50m during Asian hours. More LatAm cross-border issuance should be on the way this week. Issuers currently on the road include the government of Aruba and Chile’s Banco de Credito e Inversiones (BCI), which are heard looking at a $253m 11-year bond and a 2017 issue, respectively. Peru’s Maestro, Chile’s Arauco, Brazil’s Caixa Economica Federal and Panama’s Global Bank are also among the issuers in the pipeline.
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Masisa Issues UF Bonds
Chile’s Masisa has raised UF2m ($94m) in a domestic bond transaction that was 2x oversubscribed, according to sources familiar with the transaction. The board products manufacturer priced a UF1m 2017 tranche at 100.22 with a 5.00% coupon, to yield 4.95%, or government bonds plus 277bp, and a UF1m 2033 tranche at 98.14 with a 5.30% coupon, to yield 5.48%, or government bonds plus 288bp. Proceeds are marked for refinancing existing debt. BCI and Scotia led the deal, rated A minus on a national scale. Masisa is also understood to be looking next year to the international markets for additional refinancing.
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Pampa Energia CFO Resigns
Roberto Luis Maestretti has resigned as CFO of Pampa Energia for personal reasons, the Argentine electricity company says. CEO Ricardo Alejandro Torres steps in as interim CFO ahead of the appointment of a replacement by the company’s board.
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Plural Set for NY Operation
Brasil Plural, the Brazilian bank previously known as Plural Capital, has received approval to begin operations at its New York office, according to sources familiar with the matter. The US arm is to be headed by Sebastien Chatel, who was previously head of LatAm equities at Bank of America Merrill Lynch before stepping down in 2010. The US nod follows the recent approval of Plural’s banking license in Brazil, and the name change, as it looks to join other Brazilian brokerages and asset managers in expanding offerings and in this case capitalizing on demand for Brazilian debt and equity products from US institutional clients. The shop founded by ex-Pactual bankers including Rodolfo Reichert and Andre Schwartz bought the Flow brokerage in Brazil last year, and is awaiting final approval of the purchase of Geracao Futuro agreed in May. A move for Banco Modal was attempted last year and withdrawn. Compatriot Banco Pine is also in the process of setting up an New York operation.
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RJ Metro Raises Bonds
Concessao Metroviaria do Rio de Janeiro has completed the sale of BRL154m ($75m) in domestic bonds, it says. The metro operator’s 2028 debenture pays TR+9.5%. It is raising the funds to finance investment projects. An official at the company does not respond to a request for additional comment.
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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.
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Taesa Plans Local Debt
Taesa is preparing to issue up to BRL3.7bn ($1.81bn) in Brazil’s domestic bond market, it says. The transmission company plans BRL1.2bn in short-term debt and BRL2.5bn in debentures. The debenture sale may include a 2017 paying DI plus up to 1.0%, an inflation-linked 2020 paying a fixed rate set to the government NTN-B bond plus up to 1.55% and an inflation-linked 2024 paying a fixed rate set to the NTN-B plus up to 1.65%. The exact sizes and interest rates will be determined during bookbuilding. Proceeds are marked for refinancing existing debt. It does not name the manager of the sale, and does not respond to a request for comment.