The Central American Bank for Economic Integration (Cabei) is looking to sell bonds denominated in Mexican pesos, its treasurer Jose Magana tells LatinFinance. The bank sees current swaps as very attractive, and while it doesn’t need funding in MXP, a transaction would represent an opportunistic trade. Size has yet to be determined, but a 5-year, 7-year or 10-year transaction in floating or fixed-rate bonds is being considered. The well-traveled borrower is considering issuance in a range of currencies and markets this year, as it plans to raise $800m in the markets this year. The bank is also mulling a Taiwanese dollar or offshore renminbi issuance in Taiwan. Last month it raised CNH500m ($80m) in its first-ever offshore renminbi bond deal, pricing at par with a 3.20% coupon.
Category: Central America
Cabei Visits Asia
The Central American Bank for Economic Integration (Cabei) is currently visiting accounts in Asia on a non-deal roadshow, as it explores options in the offshore Chinese renminbi (RMB), or Dim Sum bond market, according to a source following the sale. The Central American development bank is in Singapore and Hong Kong with Standard Chartered. Cabei Treasurer Jose Felix Magana told LatinFinance last year that the development bank would consider a RMB300m-RMB500m ($48m-$80m) transaction with a 3-year or 5-year tenor in what would be its debut in the market. It sought to issue in the offshore RMB market a few years ago, but held back as it wanted to first see improvements in swap rates. Cabei has looked at America Movil’s and Korea Development Bank’s RMB-denominated transactions as two interesting reference points for exploring the market. Cabei’s most recent bond was a CHF150m ($164m) 2020 last month, its first deal in Switzerland since 2010. The bond priced at 100.198 with a 1.50% coupon to yield 1.47%, or mid-swaps plus 80bp. UBS managed the deal, rated A/A2.
Puma Syndicated Loan Crosses Finish
Puma Energy, a subsidiary of commodity trader Trafigura, has closed a $300m, 7-year syndicated loan, it says. The company declines to comment on the Libor-based interest rate or give additional details. The transaction was originally expected at $330m, but was reduced because the company didn’t need the extra $30m, according to a person familiar with the deal, who notes it was syndicated to a group of local and regional banks. The proceeds will be used to pay for the acquisition of gas stations and storage facilities in Central America and the Caribbean from Exxon completed earlier this year. Citi led the deal. It had originally been expected to close in September, with slowdowns heard because of the documentation necessary in multiple jurisdictions.
Development Bank Aims for Dim Sum
Issuance of offshore Chinese rinimnbi (RMB) bonds, or Dim Sum bonds, is coming back into focus for LatAm bond issuers, with Central American development bank Cabei adding itself to the list. Cabei is considering a RMB300m-RMB500m ($48m-$80m) transaction with a 3-year or 5-year tenor in what would be its debut in the market, Treasurer Jose Felix Magana tells LatinFinance. It sought to issue in the offshore RMB market last year, but held back as it wanted to first see improvements in swap rates. The issuer has yet to select banks and expects to do so early next year, he says. It has looked at America Movil’s and Korea Development Bank’s RMB-denominated transactions as two interesting reference points for exploring the market. Cabei is also considering a euro-denominated issuance and a Mexican domestic market transaction in the near future. The MXP transaction would likely be a 5-year sale of up to MXP1.5bn in 2Q 2013. Cabei is coming off of an S&P upgrade to A from A minus in August. Cabei’s most recent international bond was a $250m 2017 dollar bond, priced to yield 4.075% in February. Fellow development bank CAF is also looking at a Dim Sum bond. Santander Chile held investor meetings in Hong Kong and Singapore last week, and is said to be still in discussion with investors for an issuance as soon as this week. Deutsche Bank, Goldman Sachs and Standard Chartered are managing. America Movil was the regional debutant in the market in February, and was followed by Banco do Brasil.
Puma Nears Close
Puma Energy, a subsidiary of commodity trader Trafigura, is heard looking at a closing by the end of the month for its $330m 5-year syndicated loan. The funds will be used to pay for the acquisition of gas stations and storage facilities in Central America and the Caribbean from Exxon completed earlier this year. Citi is leading the deal.
Puma Looks to Close Loan
Puma Energy, a subsidiary of commodity trader Trafigura, is expected to close a $330m, 5-year syndicated loan within 2-3 weeks. The funds will be used to pay for the acquisition of gas stations and storage facilities in Central America and the Caribbean from Exxon completed earlier this year. Citi is leading the deal.
Guatemala Telecom JV Gets IFC Funds
Guatemala-based communication tower operator Continental Towers will receive a $120m IFC loan facility, the IFC says. The facility is divided into 2 senior secured tranches, a $50m, 6-year tranche taken by regional Infrastructure lender CIFI, HSBC and Banco General, and a $70m, 10-year tranche funded by IFC ($40m) and Netherlands-based development bank FMO ($30m). Interest rates are determined by a spread over Libor, with additional compensation for the 10-year tranche. This is IFC’s first transaction with Continental Towers, a joint venture between Guatemala’s Terra Towers and Credit Suisse, and funds its further expansion in the region. The investment will be used to double the number of towers that Continental Towers operates in Central America, as well as to finance its growth into Nicaragua. Continental Towers is present in Costa Rica, El Salvador, Honduras, Nicaragua and Panama.
Mapfre Takes All of CentAm Holdco
Spain’s mapfre has agreed to buy the 35% that it doesn’t own in the holdco for its Central American business from Panama’s Grupo Mundial, it says. Mapfre Mundial, as the holdco is known, contains the insurer’s operations in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. It does not disclose the value of the transaction, and does not respond to requests for comment. Mapfre bought the initial 65% from Mundial in 2009.
Colombian Gets CentAm Paint Assets
Colombia’s Compania Global de Pinturas (Pintuco) has agreed to buy the Central American paints business of US Global adhesives company HB Fuller for $120m, HB Fuller says. The American company is shedding the business it has owned since 1967 because paint is no longer core to its strategic plan. The CentAm assets generated revenue of $114m and Ebitda of $13.3m in 2011. The transaction is expected to be completed within 60 days. Pintuco, part of Grupo Mundial, has a presence in Colombia, Venezuela, Ecuador, Costa Rica, Panama and the Caribbean.
CABEI Signs $65m Loan With German KfW
The Central American Bank for Economic Integration (CABEI) has signed a 10-year, $65m bilateral loan with German development bank Kreditanstald fur Wiederaufbau (KfW) for renewable energy and regional infrastructure as it relates to green projects. The loan has a 3 year grace period and a competitive interest rate over Libor, says a person familiar with the deal. CABEI and KfW declined to elaborate on the interest rate. KfW has a history of financing development with CABEI since 1969, which over the last 10 years has funded some $400m in small and medium enterprise, renewable energy, infrastructure and health projects, adds a person familiar with the deal.