Category: Bonds

Adding to what is becoming a steady trickle of Brazilian banks to Hong Kong’s Dim Sum bond market, Bradesco has raised CNH350m ($56m). The lender’s 2016 bond priced at par with a 3.7% coupon in a private sale, according to sources familiar with the matter. Proceeds are for general funding purposes. BNP Paribas managed the sale. Bradesco is rated Baa1/BBB/BBB+. The Brazilian lender raised CNH300m in December, pricing a 2014 bond at a 3.90% yield. Banco do Brasil and BTG Pactual also made use of the offshore renminbi-denominated market, and Santander Brasil has indicated intentions to join them.

Brazil’s Cyrela Commercial Property plans to raise BRL150m ($74m) through the sale of domestic bonds, it says. The developer’s 2018 debenture would pay DI plus up to 1.0%, and amortize in two parts during the final two years. Proceeds are for working capital. Banco do Brasil is managing the sale, done under the rule 476 restricted format.

Minerva has launched a cash tender offer targeting three series of pricey bonds, it says, and will meet investors starting today ahead of a likely 10-year new issue, according to sources familiar with the process. The Brazilian meatpacker is to visit London, New York, Boston and Los Angeles through Wednesday. The proceeds will be used to repurchase the 9.500% 2017, 10.875% 2019 and 12.250% 2022 bonds involved the tender. Minerva is offering $1,105 per $1,000 principal of the 2017s, $1,200 per $1,000 of the 2019 and $1,262 per $1,000 of the 2022. The prices include a $30 per $1,000 bonus for holders accepting before a January 25 early deadline. The full offer expires February 8. There is $34m outstanding in the 2017 bond, $372m of the 2019 and $450m of the 2022, and Minerva has set a $500m cap on the buyback. BTG Pactual, HSBC and Credit Suisse are managing the tender and new issue. Peer Marfrig is also on the road ahead of a likely $300m 2017, and is scheduled to finish a roadshow Tuesday.

Brazilian road operator Triangulo do Sol Auto-Estradas has initiated investor meetings as it restarts a domestic bond sale process paused in November. Bookbuilding for the 2-tranche BRL620m ($305m) transaction due 2020 should start February 6 and conclude by the end of February, according to a prospectus. A first tranche would pay DI plus up to 3.0% as originally planned, while an inflation-linked second tranche should offer up to 8.0%, an increase from the 7.5% ceiling the Atlantia Bertin unit had set when it originally registered its intentions in August. The first tranche amortizes twice annually beginning 2014, and the second annually beginning 2014. The exact amount of each portion and its interest rate will be determined during the bookbuilding process. The transaction may be upsized by as much as BRL217m. Proceeds are for repaying BRL620m in 1.5-year debt due in October that is costing it DI+2.5%. BTG Pactual, Bradesco, Itau and Santander are managing the sale, rated AA/AA on a national scale.

Companhia Estadual de Aguas e Esgotos (Cedae) plans to raise BRL150m ($74m) in Brazil’s domestic bond market, in addition to the IPO it is already in the process of preparing. The Rio de Janeiro state water utility’s 2017 debenture would pay DI+1.69%, according to regulatory documents. Proceeds are for working capital. Itau is leading the deal, to be done under the rule 476 restricted format. Separately, Cedae registered late last year for an IPO, through has yet to pull the trigger on a launch. Bank of America Merrill Lynch, Bradesco, BTG Pactual and Itau are managing that process, which would raise funds for expansion.