The Monterrey-Saltillo toll road has put off a MXP4.5bn ($351m) bond that was tentatively scheduled to price this week in the domestic market. Pricing efforts will be revisited in 1Q 2013. The concession is looking to offer UDI-denominated notes with a maturity of approximately 25 years, with proceeds repaying bank loans and subordinated debt with the government Fonadin fund. The toll road is looking to price in the UDIBonos+390bp-area. The toll road, owned by Spain’s Isolux-Cosan, has been operational for almost a year. Santander, ING and Bank of America Merrill Lynch are bookrunners on the transaction, rated AA/AA+ on a national scale.
Category: Bonds
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ALL Raises Local Debt
Brazil’s America Latina Logistica (ALL) has raised BRL750m ($359m) in domestic bonds, according to Anbima. The rail operator’s 2017 debenture pays DI+1.3%. ALL plans to used the proceeds to improve its debt profile. Caixa Economica Federal managed the transaction, done under the rule 476 restricted format.
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Chilean Utility Plans Issue
Saesa is planning to issue UF2.5m ($121m) in Chile’s local bond market on December 20. The electricity transmission company can choose from a 7-year tranche with a 3.40% coupon and a 21-year tranche with a 3.75% coupon. The proceeds will be used to refinance debt. IMTrust and BCI lead the deal, rated AA/AA on a national scale. Saesa sold UF2m in domestic bonds in its last deal in October 2011.
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BB Gets China Nod
Banco do Brasil has received authorization to operate as a bank in China, a bank spokesman says. The bank previously had a representative office in the country, and now looks to upgrade its capabilities in order to better attend to Brazilian companies with operations in China as well as Chinese entities operating in Brazil.
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Davivienda Eyes More International Debt
Colombia’s Banco Davivienda has received board approval to issue $300m in the international bond markets, it says. In June, Colombia’s third-largest bank saw 6x demand for its debut dollar bond offering, pricing a 5.875% $500m 2022 bond to yield 5.950%. Credit Suisse and JPMorgan managed. It followed in the domestic market sale in August, raising COP500bn ($275m) in 2022 and 2027 bond. Davivienda is rated Ba1/BB+.
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Emgesa Still on Deck
Emgesa is expected to issue up to COP300bn ($166m) in Colombia’s domestic bond market today, after originally aiming to price Wednesday. The generation company is able to choose from maturities of 10-15 years, with the possibility to upsize to as much as COP500bn. 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.
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Interacciones Set for MXP Bond
Mexico’s Grupo Financiero Interacciones plans to issue a new MXP1.5bn ($117m) 2015 bond in Mexico’s domestic market today. Price talk is TIIE+135bp-area and proceeds will be used to maintain liquidity and for general corporate purposes. Interacciones is leading the transaction, rated A/A+ on a national scale. The bank, which specializes in sub-national and public infrastructure financing, last month raised MXP700m in 2022 subordinated bonds at TIIE+250bp.
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Mexican Toll Road Preps Domestic Debt
Grupo Ideal’s Tijuana-Mexicali toll road concession has filed a program to raise up to MXP10bn ($786m) in Mexico’s domestic bond market, according to a filing. It plans to sell peso-denominated notes with a 30-year maturity. Proceeds will be used for investments for new projects, working capital and liquidity needs. Inbursa has been named as a bookrunner.
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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.
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Ferreyros Picks Banks
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.