Impulsora de Desarollo y el Empleo en America Latina’s (IDEAL) plan to raise up to MXP10bn ($786m) in Mexico’s domestic bond market at four of its toll roads is gaining momentum, with Moody’s assigning an Aa2 to the Banco Invex trust issuing on behalf the concessions. IDEAL plans to sell peso-denominated notes with a 30-year maturity. “The total amount approved under the Invex program is MXP 10bn and the entire amount is expected to be used in the first issuance,” the agency says. The four concessions involved are the Autopista Chamapa La Venta road serving the area to the west of Mexico City, the Tijuana-Tecate unit making up a portion of the road from Tijuana to Mexicali, the Libramiento de Toluca serving the Toluca region and the Autopista Tepic-Villa Union running from Tepic, Nayarit to Mazatlan, Sinaloa. All the roads are wholly-owned subsidiaries of IDEAL. Proceeds from the issuance will be distributed back to the originators on a proportionate basis and then to IDEAL to be used for additional investments in concessions in Mexico and Latin America, Moody’s adds. Inbursa has been named as a bookrunner.
Category: Bonds
More Gloria Units to DCM: CFO
After a successful $325m bond sale in which Corporacion Azucarera del Peru (Coazucar) drew $4.5bn demand from Andean-hungry investors in July, other Grupo Gloria entities are considering the bond market. “We had a successful issuance with Coazucar, very well received and which performed very well in the secondary. Not only Coazucar, but perhaps other holding companies in dairy and cement could be going to the market in 2013 or 2014,” CFO Francis Pilkington tells LatinFinance, noting interest in a similar size and tenor as the Coazucar trade. Gloria has nine units in the food and dairy segment and five in the cement sector operating in Peru, Bolivia, Ecuador, Colombia, Argentina, Puerto Rico and Uruguay, in addition to other sectors. Pilkington says Gloria is evaluating more fundraising as it actively looks at expansion in cement and dairy – where it sees excellent growth potential – through acquisitions in the countries where it already operates. Its most recent purchases include a 55% stake in Uruguayan dairy company Ecolat Uruguay and a 48% stake in Bolivian cement concrete and aggregate products manufacturer Sociedad Boliviana de Cemento (Saboce). The group owns a 75% stake in Ecuador-based dairy company Lechera Andina, a 50% stake in Argentine-based Compania Regional de Lacteos Argentina (Corlasa), and a 100% stake in Colombian milk processing company Algarra. It owns Peru-based Cement and concrete business Yura and three Yura subsidiaries cement and lime producer Cemento Sur, ammonium nitrate producer Industrias Cachimayo and concrete producer Concretos Supermix. While the group generates sufficient internal cash flow to finance growth through acquisitions, the group allows each unit to self-manage acquisitions independently and according to its own ratios of profitability and cash flows. Gloria continues to keep close tabs on the bond market and continues to see attractive pricing, Pilkington says. “We have seen other very successful issuances from other corpo
Promigas Watches Local Market
Promigas will look to issue up to COP580bn ($328m) in Colombia’s domestic bond market later this month or in early February, according to a person familiar with the Colombian gas company’s plans. It will aim for 10-20 year maturities, likely issuing a 10-year, 15-year and 20-year tranche. Corficolombiana is managing the deal, rated AAA on a national scale, with Casa de Bolsa, Corredores Asociados and Serfinco also acting as bookrunners. Funds will be used to refinance liabilities. Promigas last sold bonds in the domestic market in August 2009, raising COP400bn at various maturities via Bancolombia.
Slim Bank Lays Groundwork for Local Debt
Mexico’s Inbursa has filed a shelf to issue up to MXP30bn ($2.3bn) in the domestic bond market, according to regulatory documents. Inbursa is the only bookrunner associated with the program so far. The Carlos Slim-owned lender’s most recent domestic bond was an MXP8.05bn ($621m) offer in November. It sold MXP6.43bn in 2014 bonds at TIIE+20bp, and MXP1.62bn in 2016 bonds at TIIE+30bp. Inbursa, Banamex, Bancomer, HSBC and Banorte-Ixe managed that transaction. Inbursa is rated AAA on a national scale.
Chilean Lender Adds Bonds to Fundraising Plans
Chile’s CorpBanca has scheduled meetings with fixed-income accounts, as it seeks $750m in bond debt to help fund the $1.2bn purchase of Colombia’s Helm Bank agreed in October. Already preparing to price an equity follow-on January 15, the bank is to meet debt investors today in Lima, followed by visits to Los Angeles, London and New York before wrapping up in Boston on Wednesday. Citi and JPMorgan are managing the process, which should result in an SEC-registered deal. The $750m Baa1/BBB+ sale should be for up to 10 years, according to ratings agencies. Both Moody’s and S&P have a negative outlook on the bank’s ratings, due to the financial strain coming from acquiring both Helm and Santander Colombia within a year. Moody’s cites a potential for negative pressure on its financial fundamentals that hinge on the bank’s ability to raise a large amount of capital, though the agency acknowledges CorpBanca’s success in raising capital in the first half of 2012 to finance the Santander buy. CorpBanca is also scheduled to begin meeting equity investors Monday, ahead of the international portion of a follow-on that should eventually top $600m-equivalent. BTG Pactual is managing the equity sale, with Celfin and CorpBanca as co-managers. CorpBanca, Chile’s fifth-largest bank in terms of total loans and deposits, is expected to complete the Helm acquisition in 1Q.
Colombian Telecom on the Road
Empresa de Telecomunicaciones de Bogota (ETB) is preparing fixed-income investor meetings, ahead of what should be a $300m transaction. The roadshow comes after the city government-controlled Colombian telecommunications operator received shareholder approval last year to issue up to $600m in the international markets. The potential $300m transaction should be denominated in dollars or pesos, according to Moody’s, which assigns a Ba1 rating. ETB is scheduled to begin today in Lima, and will visit accounts in London and Los Angeles Monday, New York Tuesday and Boston on Wednesday. Deutsche Bank and Goldman Sachs are managing the sale, which would be an international debut. Proceeds are destined to fund growth and capital expenditures, according to Moody’s. The option of issuing in COP or USD allows for financing flexibility and also makes sense as the telecom generates revenues in pesos, DCM bankers say. “For the period from 2013 to 2015, the company anticipates investing approximately $370m per year in capital expenditures necessary to implement its investment plan. It estimates about 64% of its capital expenditures during this period will be denominated in dollars, while the remaining 36% will be denominated in Colombian pesos,” Moody’s says. Colombia Telecomunicaciones (Coltel) had considered a Colombian peso-denominated tranche alongside a dollar bond during marketing in September 2012, but opted for a USD sale, as it was able to achieve more attractive pricing on the dollar portion.
Lender Mulls COP Bonds
Serfinansa plans to issue up to COP200bn ($114m) in bonds in Colombia’s domestic market, according to regulatory documents. The commercial lending specialist is able to issue bonds of between one and 12 years. It does not offer additional details, and officials were not available for comment. Serfinansa is rated AA on a national scale.
Spanish Bank Opens in Chile
CaixaBank has opened a representative office in Chile, the Spanish bank’s first in Latin America. The office will help support Spanish companies doing business there and also Chilean companies doing business in Spain, says a person familiar with Caixa’s plans. In terms of other Latin American involvement, Caixa has a partnership and 20% stake in Inbursa in Mexico. Its next step will likely be a move into Colombia, the person adds.
Terpel Prepares Domestic Issuance
Colombian fuel company Terpel could look to issue COP700bn ($397m) in Colombia’s local bond market, according to regulatory documents. It is in the process of registering bonds with a maturity between 18 months and 20 years. Further details are not yet available, and the company was not immediately available to comment. Separately, Terpel’s sale of Chilean assets to Quinenco has been approved by Chile’s Supreme Court. The country’s antitrust court had previously stepped in to block the $320m sale, agreed in September 2011 of Terpel Chile assets to Quinenco.
Toyota Files for MXP Debt
Mexico’s Toyota Financial Services has filed a shelf to issue up to MXP10bn ($791m) in the domestic bond market, according to regulatory documents. It has not yet indicated details about the first transaction. Banamex and Scotia have been hired in association with the program. Its most recent domestic bond was in May 2012, when the issuer rated AAA on a national scale priced a MXP1bn 2015 bond at TIIE+33bp, through BBVA Bancomer and Banamex.