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.
Category: Bonds
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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.
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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.
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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.
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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
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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.
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Ipiranga Clinches Debentures
Ipiranga Produtos de Petroleo has completed the sale of BRL600m ($288m) in Brazil’s local bond market, according to Anbima. The 2017 debenture pays 107.9% of the DI, in line with the issuer’s expectations. The fuel distributor is raising funds to repay debt. Bradesco managed the sale, done under the rule 476 restricted format.
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JPMorgan Names LatAm Banking Heads
JPMorgan has named Alejandro Guevara and Lisandro Miguens as co-heads of banking for Latin America, it says. The role had previously fallen under the responsibilities of LatAm CEO Nicolas Aguzin, who last week became the bank’s deputy CEO of Asia. Aguzin was replaced as LatAm CEO by Martin Marron, with Guevara and Miguens now heading LatAm banking, which covers investment banking, DCM, ECM and M&A in the region. Guevara had been head of credit for South America, and has been head of the LatAm global corporate bank since 2006. Miguens comes from the posts of senior country officer for the Andean, Central American and Caribbean region and head of investment banking for Mexico, Central America and Colombia.
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Mexico Lays out Borrowing Agenda
Mexico’s finance ministry is proposing to borrow as much as $7bn in the international debt markets and raise MXP415bn ($32.3bn) from the domestic market next year, according to a proposal it has sent to congress for approval. The government highlights the use of syndicated bond transactions on the domestic side, through which it has sold MXP84.4bn this year in 5, 10 and 30-year bonds. Internationally, it plans to evaluate several funding sources in addition to USD, it says, including the yen, euro, and British pound. Mexico has raised $4bn in the dollar bond markets in 2012, and also visited Japan for $1bn-equivalent. It last hit the Euro market in 2010, and has not issued in GBP since 2004, according to Dealogic data.
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NADB Retaps Bonds
The North American Development Bank (NADB), a lender 50% owned by Mexico’s government, has emerged to retap its 2022 bonds for $180m. Starting on the back of some $100m in reverse inquiry, the supranational drew approximately $300m in orders and boosted the outstanding size of the bond to $430m. The 2.40% coupon note reopened at 101.363 to yield 2.245%, or UST+62bp, inside of UST+65bp initial price talk. The 2022 had been quoted at UST+60bp in the secondary, according to sources following the sale, indicating 2bp concession. In a separate transaction Monday, NADB also priced a $50m 18-year bond at par to yield 3.00%. BNP Paribas and Bank of America Merrill Lynch managed the reopening, while BNP handled the smaller transaction. The bonds are rated AAA/AA+. The San Antonio, Texas-based NADB was created by the United States and Mexico, under NAFTA, with the US government owning 50%.