Japan’s Nomura Securities seeks an expanded role in LatAm and is deciding how best to allocate new staff and resources to a region where it was active until the late-2001 Argentine debt crisis. “We are now considering what we can do in the emerging markets and in Latin America,” Takeo Sumino, COO at Nomura Holding America, tells LatinFinance. “We have been very quiet in Latin America for a while – just because Japanese investors had a bad memory of the Latin American crisis – so they’ve been shying away from Latin American credit,” he says. Awareness is increasing as more Japanese firms do business in LatAm. Sumino says Brazil is the first area of focus for his bank. Nomura Asset Management expects to close this month a $1.0bn-$1.5bn Brazilian infrastructure fund marketed to Japanese investors. “It will be one of the first of its kind in terms of dedicating a fund towards Brazilian corporate equity,” Sumino says. He adds that fixed income underwriting in the region is a strong option for the bank to consider. Nomura jointly led a JPY150bn ($1.7bn) 2019 December bond sale for Mexico. Colombia also issued in yen last year with a JBIC guarantee, and bankers say that quasi-sovereigns or even corporates could diversify their funding base by tapping the Japanese investor base. Sumino says Brazil is a leading candidate for yen issuance, and Chile and Peru should also be able to access the samurai market. Nomura also wants a bigger presence in LatAm cross-border M&A. Nomura’s New York office has grown from a staff of 650 to about 1,300 in the last 5 months, Sumino says. The bank has not yet decided about adding in LatAm, where a Sao Paulo rep office houses 2 bankers.
Category: Daily Brief
Nextel Peru Dials A/B Loan
Nextel’s Peruvian arm has raised a $130m A/B loan to grow its mobile operations in the country. The deal, which closed over the holiday break, includes a $50m 7-year A loan from FMO, with participation from DEG, at Libor plus 575bp. There is also a B loan paying 475bp for 3 years, 525bp for 5 years and 575bp over Libor for 7 years, via a group of commercial lenders led by Standard Bank. The B loan syndication included participation from several regional lenders, including BCP and Banco BIF, as well as Panama-based Tower Bank, Multibank, Banco Aliado and Global Bank, according to a banker close to the deal. US-based CIFI also participated, as did HSBC in the B portion. The deal began syndication in Q4 last year and wrapped up in the final 2 weeks of 2009.
BNDES Launches World Cup Loan Programs
Brazil development bank BNDES presented its BRL1bn ProCopa Turismo financing program to hoteliers. The program will offer financing for renovation projects and construction of new tourism facilities. The loans will have terms of up to 12 years for renovation projects and up to 18 years for the construction of new facilities. Margins will include a fixed-rate base spread that ranges from 6.9%-8.8% plus a credit spread. BNDES is also launching the ProArenas program, will make available BRL4.8bn to finance up to 75% of the construction of stadiums and other urban infrastructure. Each project will have access to loans of up to BRL400m that bear interest rates of TJLP plus the 0.9% BNDES spread plus a borrower-specific credit spread. Tenors can be up to 15 years with 3-year grace periods.
Rio Bags IBRD Loan
The World Bank has approved a $485m loan to the state of Rio de Janeiro to help improve education, health, fiscal management and the investment climate, helping offset the impact of the global slowdown. The loan is for 30 years. The bank does not disclose interest rate.
ACCION Mines Brazil’s North
Global microfinance organization ACCION International is expanding in Brazil after president Lula approved its application to establish a unit in the state of Amazonas. The IDB’s Multilateral Investment Fund will take an 18.1% stake in ACCION Microfinancas. Private investor Luiz Felipe D’Avila and other private investors will own 8.5%, and ACCION will hold 73.4% of the organization. ACCION will start operations in Manaus, the largest city in Amazonas, with plans to extend to cities throughout Brazil’s northern region. The area is home to an estimated 1.9m micro entrepreneurs, just 8%-10% of who have received any kind of loan from a bank or microfinance organization, says ACCION. It issued its first microloan in Brazil in 1973. Partner microfinance institutions operate in 23 countries in LatAm, Asia, Africa and the US. In the last decade, ACCION partners have disbursed more than 28.5m loans totaling $23.4bn.
Mayer Brown Adds Energy Expert
Global law firm Mayer Brown has appointed Jose Valera as partner in the corporate and securities practice based in Houston. Valera focuses on domestic and international energy transactions, and has more than 25 years of legal experience representing oil, gas and electric energy companies throughout the US, LatAm, Africa and Asia. He has worked on exploration and production contracts, investment agreements, upstream development projects, M&A, joint ventures, LNG regasification projects and thermal and renewable generation.
Brookfield Issues Local Bonds
Brazil real-estate company Brookfield Incorporacoes has issued BRL366m in non-convertible debentures rated A+. Earlier in the week the company had upsized the issue by BRL66m.Proceeds will be used to pay down debt. Santander managed the sale.
MRV Kicks Off Roadshow
Brazilian real estate developer MRV Engenharia has kicked off its roadshow for a 2014 BRL400m debenture issue. The company says it will pay up to 1.6% over the DI rate. Bradesco BBI is managing the sale. Proceeds will be used to acquire land for new projects and to strengthen working capital.
CCM Unit Extends Again
Tiendas Comercial Mexicana has again extended the period for its local debt exchange offer, it says, to March 2. Parent Controladora Comercial Mexicana seeks to extend its maturity profile as it recovers from crisis-related derivative problems. The retailer is offering holders up to MXP1.5bn in new 2016 notes in exchange for 5 series of outstanding bonds with nearer maturities. The new bonds are rated BB on a national scale and should be issued following close of the offer. Comerci has not indicated the acceptance rate to this point. Ixe is managing the transaction.
Voto Heard Entering Cimpor Fray
Brazil’s Grupo Votorantim, which until now has been a bystander in the bidding for Portugal’s Cimpor, which includes a tender offer by CSN and a merger proposal from Camargo Correa, is heard to be seeking to acquire Lafarge’s 17% stake in Cimpor. The move was reported in the local Portuguese press and bankers away from the process confirm Voto is indeed targeting the stake. Camargo is also rumored to be preparing a new proposal to remain in the running for Cimpor after it withdrew its original merger offer late last week, citing technical and procedural reasons. Senior executives at all 3 bidders were heard in Portugal negotiating a deal with investors over the weekend. Voto’s move appears to be designed to thwart CSN’s outright takeover of Cimpor, rather than to challenge it in a bidding war for control. Cimpor shareholders include Lafarge (17%), Teixeira Duarte (23%), Manoel Fino (11%), Bipadosa (7%) and Cinvest (4%). Itau analysts say CSN is the most likely winner in the bidding. They favor CSN’s bid because it is the only live offer that reaches out to all shareholders; its Brazil-based cement business does not conflict with Cimpor’s and CSN is the most financially sound bidder of the 3 Brazilians. CSN has recently filed a BRL10bn short-term note program whose proceeds could eventually be used for the acquisition. However, with the likelihood of further bids, the price of Cimpor is seen rising beyond the EUR5.75 a share which CSN is offering and above the EUR6.27 it closed at Tuesday.