Grupo Saieh, which controls Corpbanca, has sold 14.4bn shares in Corpbanca, raising about $225m equivalent, coordinator Celfin says. The block representing a 6.34% stake priced at CLP7.35, the floor set in the sale, to raise CLP 105.8bn ($226m). The price matched Thursday’s closing levels. Shares closed Friday at CLP7.45. Celfin managed the sale. Separately, Corpbanca is moving ahead with the 25.5m share capital raise it approved in January, according to local press reports.
Category: Chile
Posted inDaily Brief
Chile Pension Divestment Schedule Extended
Chile’s pension regulator has extended the period in which pension Funds may divest excess local equity investments, according to an announcement on the agency’s website. Excess investment is defined as a more than 65% stake in a company. The Superintendencia de Pensiones (SAFP) extended the period to twelve months, up from six months. An association of pension funds had requested that the period be extended for up to 3 years.
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Correction: Chilean Scarcity Drives Gildemeister Debut
A May 18 daily brief titled “Chilean Scarcity Drives Gildemeister Debut” misstated the credit rating of Automotores Gildemeister. It is rated BB/Ba1.
Posted inDaily Brief
Chile’s GDP Grows 9.8%
Chile’s central bank reported that GDP grew 9.8% by the end of Q1 2011 over the year before, meeting market consensus. That is up from up from 5.8% yoy growth during Q4 2010. Growth was driven by the fishing sector (+36.6%), agriculture and forestry (+15.8 %), transportation (+14.0%), retail (+13.0%), and manufacturing (+11.1%).
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Camanchaca, Paz Added to MSCI Chile
MSCI added Pesquera Camanchaca and Paz to its Small Cap Chile index, according to its website. It also added Desarrolladora Homex, Grupo Herdez and Promotora Y Operadora de Infrastructura to its Small Cap Mexico index and Gold Fields La Cima to its Small Cap Peru index. Meanwhile, Cicsa, Inmuebles Carso, Maxcom and Vitro were all removed from the Mexico index while Empresa Siderurgica was removed from the Peru index. ECL had been rumored to be added to the list, but was not included.
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SalfaCorp Plots Capital Raise
Chilean builder SalfaCorp plans to raise CLP61.88bn ($131m) through a private share subscription open to existing holders, according to a company finance official. It has set a price of CLP1,650 for each of the 37.5m shares available in the offer. This is half of the 75m shares it had been authorized to sell. Proceeds will help fund the acquisition of 80% of Panamanian builder Intercoastal Marine. SalfaCorp shares closed at CLP Wednesday. Salfacorp shares closed Wednesday at CLP1,834.40.
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Watt’s Issues Local Chilean Bonds
Chilean food company Watt’s has issued UF2m ($92m) in 5-year and 20-year bonds, for UF1m each. The 5-year notes priced at 99.63 with a 3.40% coupon to yield 3.48%. Demand came from insurance companies and pension funds. The 20-year bond priced at 103.5 with a 4.2% coupon to yield 3.88%. Mutual funds and insurance companies were the main investors in that tranche. The deal received over 4x demand, according to a banker on the deal. “This is a good issuer, it has some new lines of business and has not come to the market in several years, so there was strong demand,” he says. LarrainVial was the sole lead. The notes are rated A on a national scale and the proceeds will be used to pay down short term debt. Watt’s last came to the local market in September 2008, pricing $79m equivalent in 2015 UF bonds, at a 4.25% yield. The company’s board authorized a bond shelf of up to UF6m ($274m) in March.
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Chilean Scarcity Drives Gildemeister Debut
Chilean auto distributor Automotores Gildemeister has sold $300m in 2021 NC5 bonds, getting more than $1bn in demand and seeing a pop in the aftermarket. The debut issuer priced at par with an 8.250% coupon, to yield inside of initial 8.375%-8.500% guidance. Investors say they were drawn in by a solid credit and the scarcity value of Chilean high-yield, though these were weighed against AG’s reliance on Hyundai, which according to Fitch accounts for 70% of its sales. The bond traded up more than two points in the gray Tuesday afternoon, according to investors. Finding direct comps for the BB/B1 bond is difficult, investors explain, with a few noting the poor aftermarket performance of BB-rated Chilean transport company Inversiones Alsacia, trading down in the 96-97 area after pricing at par earlier this year. Proceeds from the issuance would mainly be used to refinance existing debt and improve liquidity. In addition to importation and distribution, AG is in the retail market through 174 owned or leased dealers throughout Chile and Peru, according to Fitch. JPMorgan managed the sale.
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Sumitomo Announces Chile JV
Sumitomo Metal Mining announced it will take a 45% stake in a JV with Quadra FNX to develop the Sierra Gorda copper-molybdenum project in Chile for $724m. Quadra says it will provide its proportional share of the JV funding requirements, at approximately $650m through debt and cash on hand. JPMorgan has been engaged to arrange corporate debt financing for the company. Sumitomo will arrange a minimum $1.0bn project financing or a $800m loan, likely arranged through JBIC, according to a Quadra spokesman. A $360m bridge facility from Sumitomo has also been arranged to cover costs subsequent to August 31, 2011. CIBC and Blake Cassels acted as advisors to Quadra on the deal.
Posted inDaily Brief
Automotores Set for Bond
Automotores Gildemeister has given 8.375%-8.500% yield guidance for its new 2021 NC5 bond, according to investors. The distributor of Hyundai and other automotive brands in Chile, Peru and Uruguay finished investor meetings Monday, and is expected to price a $250m-$300m bond as soon as today. The guidance is in line with earlier whispers of low to mid 8%s. Finding direct comps for the BB/B1 bond is difficult, investors say, with a few noting the poor aftermarket performance of BB Chilean transport company Inversiones Alsacia, trading in the 96-97 area. Proceeds from the issuance would mainly be used to refinance existing debt and improve liquidity. In addition to importation and distribution, AG is in the retail market through 174 owned or leased dealers throughout Chile and Peru, according to Fitch. JPMorgan is managing the sale.