Peru’s Ferreyros has awarded a mandate for an international bond transaction to Bank of America Merrill Lynch and JPMorgan, CFO Patricia Gastelumendi tells LatinFinance. The exact timing and details have not yet been determined. The heavy machinery distributor said in May that it was initially considering $100m-$200m in 10-year bonds, in what would be its debut in the international market. The Lima-based distributor for Caterpillar, Atlas, Copco and other brands has been targeting an issue by its holding company backed by guarantees from subsidiaries. Ferreyros had been waiting until after a corporate reorganization was completed in July, splitting its operations into automotive and machine units, both under a single holdco. The new Ferreycorp contains Ferreyros SA and ten additional subsidiaries in a move that would promote autonomy for each subsidiary and target product and service developments independently. Proceeds from the bond issue would be used to extend its debt maturity profile. In February, Ferreyros raised PES170m ($63m) in equity. The company reported consolidated sales of $791m in the first half of 2012, up 24%, or $636m from the same period in 2011.
Category: Bonds
Gases de Occidente Raises Domestic Bonds
Gases de Occidente has issued COP200bn ($111m) in Colombia’s domestic bond market, according to sources following the sale. The gas distributor sold COP110bn in 2022 bonds at IPC+3.75%, and COP90bn in 2032 bonds at IPC+4.13%. The issue saw COP256bn in demand. Corficolombiana and Casa de Bolsa managed the transaction, rated AAA on a national scale.
Guatemalan Bank Targets Bond
Guatemala’s G&T Continental is heard to be among the borrowers looking at the January issuance window, according to sources familiar with the bank’s plans. G&T is likely interested in a deal similar to domestic competitor Banco Industrial’s $500m 2022 sold in October. Bank of America Merrill Lynch is heard to have the mandate. “G&T is looking at the international bond market as it seeks to strengthen and support expansion of organic growth and address shorter-term maturities at attractive funding costs,” says an analyst familiar with the borrower’s plans. A sale would be the BB/BB rated borrower’s international debut, according to Dealogic data. The bank was established in 2001 after the merger of Banco Granai & Townson and Banco Continental. G&T is part of Corporacion G&T Continental, a holding company for 16 entities with operations in Guatemala, El Salvador, Costa Rica and Panama.
Iguatemi Plots Debentures
Brazilian shopping mall operator Iguatemi is planning to raise BRL400m ($192m) in the domestic bond market, according to regulatory documents. A 2020 tranche pays the DI plus up to 1.0%, and a 2021 inflation-linked tranche pays a fixed rate, set to the NTN-B bond at the time of pricing plus up to 100bp. The size of each portion is to be determined during the sale process. The transaction is able to be upsized to as much as BRL540m. The sale would raise funds for investments, including acquisitions. A roadshow should begin January 7, with pricing wrapped up by late February. Bradesco, BTG Pactual and Santander are managing.
YPF to Add Local Debt
YPF plans to price Monday up to ARP4bn ($821m) in domestic bonds, it says, which can be upsized to ARP4.5bn. The Argentine state-controlled oil producer is offering 2018 bonds paying a floating rate to be determined at the time of pricing, and 6.25% coupon 2016 bonds. Banco Galicia, Banco Hipotecario, BACS, Santander Rio, BBVA Banco Frances, Macro and Nacion Bursatil are managing the sale, rated AA on a national scale. Additionally, YPF is offering up to ARP50m in 19% 1-year bonds to retail investors through Friday.
Emgesa Set to Issue
Emgesa is scheduled to issue up to COP300bn ($166m) in Colombia’s domestic bond market today, with the ability to upsize to COP500bn. The generation company’s bonds are expected with a maturity between 10 and 15 years, and either inflation-linked or fixed-rate. The proceeds will be used for refinancing intercompany debt and financing the El Quimbo hydroelectric power project. Corredores Asociados, Correval, BBVA and Serfinco are managing the sale, rated AAA on a national scale.
Cement Maker Ponders HY Bond
Mexico’s Grupo Cementos Chihuahua is considering an international bond, according to sources familiar with the plans. The idea is for a 7-year transaction pari-passu with a loan facility the cement maker is syndicating, with the two sharing collateral. The 5-year, $210m senior secured loan pays Libor+500bp, tied to a leverage grid. BBVA, Citi and Scotia are leading the loan. Cementos Chihuahua last visited the international bond market in 2006, raising $250m in 2016 and 2018 bonds, according to Dealogic data.
Gases de Occidente Advances Bond
Gases de Occidente has been authorized to sell COP200bn ($110m) in Colombia’s domestic bond market, it says. The issuer can choose from five possible tranches, with terms between two and 20 years. The proceeds are being used to replace existing liabilities and pay for investments. Corficolombiana is managing the sale, rated AAA on a national scale. Elsewhere in Colombia’s market, Emgesa is planning to issue up to COP300bn ($166m) Wednesday, with the ability to upsize to COP500bn.
Hospital Looks to Continue Mexican ABS Expansion
Mexico’s domestic ABS market appears set to see a continued expansion in bonds backed by public service contract receivables, with a health services provider eyeing a transaction and others likely to follow. A prison contract securitization from builder ICA last year broke new ground in the space, and bankers and investors have been expecting others with government deals to monetize their future payments. Desarollo y Operacion de Infraestructura Hospitalaria de Ixtapaluca (DOIHI) plans what would be Mexico’s first transaction backed by hospital service contracts, according to sources familiar with the matter. The 22-year notes are guaranteed by future payments from contracts the specialty Ixtapaluca hospital has with Mexico’s health ministry to operate hospital facilities. The transaction is expected as soon as January, following a preliminary investor presentation last month, and should have a size of up to MXP1.8bn ($140m). “The scheme helps to develop and construct infrastructure in Mexico in association with the private sector in Mexico,” says a person familiar with the transaction. The project is one of various contracts the government has awarded for hospital services. Some of the others would, like ICA’s, involve construction, and might also be securitization candidates. ICA’s Sarre and Papagos units sold MXP7.1bn in 21-year bonds backed by contracts to construct and operate two prisons in September 2011, the first domestic bond to fund a project with construction risk. The key for all transactions is the contract the issuer has with the government entity. At the time, DCM bankers fully expected more public service contract securitizations to follow ICA, noting the sector is unimportant, as long as there is government support. The DOIHI transaction is expected to target typical long-term investors such as Afores and insurance companies. Banamex is leading the deal, rated AAA on a national scale. The hospital is located in the state of Mexico, west of Mexico C
Interacciones Sets Price Target
Mexico’s Grupo Financiero Interacciones is heard seeking to pay TIIE+135bp-area on a new MXP1.5bn ($117m) 3-year bond in the domestic market. The sale is expected Friday, and will raise funds to maintain liquidity and for general corporate purposes. Though it issued subordinated debt last month, the bank’s last senior local sale, for MXP2bn, came in March at TIIE+115bp. The issuer had the intention of returning to the market sooner after the March sale, and postponed due to Mexican elections, sub-national debt concerns, and the bank’s subordinated debt rating put under review by the ratings agencies, says a banker on the deal. It may now face slightly wider spreads. Interacciones is leading the transaction, rated A/A+ on a national scale. Interacciones, which specializes in sub-national and public infrastructure financing, last month raised MXP700m in 2022 Subordinated Bonds at TIIE+250bp.