The Monterrey-Saltillo toll road is scheduled to sell up to MXP4.5bn ($345m) in Mexico’s domestic bond market as soon as next week. The concession owned by Spain’s Isolux-Cosan is looking to price the 25-year UDI-denominated notes at UDIbonos+390bp, according to a source familiar with the sale. Proceeds will be used to repay bank loans and subordinated debt with the government Fonadin fund. The toll road 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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MG Entity Completes Local Bond
Brazil’s Companhia de Desenvolvimento Economico de Minas Gerais (Codemig) has raised BRL700m ($335m) in domestic bonds, according to Anbima. The agency’s 2020 debenture pays DI+2.25% and amortizes monthly beginning in 2014. Itau managed the sale, done under the rule 476 restricted format.
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MGE Seeks 5-Handle
Mexico Generadora de Energia (MGE) is out with initial price thoughts of mid-to-high 5%-area for a $564.2m 2032 bond, expected as soon as today. The Grupo Mexico-controlled electric power generation project wrapped up fixed-income meetings with US and LatAm accounts Wednesday. The Baa2/BBB bond features a 13-year average life. The 500 megawatt gas-fired electrical power facility has a 20-year power purchase agreement to supply Grupo Mexico’s Mexicana de Cobre and Buenavista del Cobre mines. The project is being developed in two phases, which are 88% and 51% complete, respectively. The bonds come with collateral of first priority security on all assets, collection rights under contracts, and equity interests of the issuer. Bank of America Merrill Lynch, HSBC and Morgan Stanley are joint bookrunners, with Morgan Stanley as sole structuring agent.
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YPF to Add to Domestic Bonds
Argentina’s state-controlled energy company YPF plans to reopen its 2017 domestic bonds for up to ARP1.36bn ($282m) Friday, it says. The bonds, originally sold for ARP750m earlier this month, pay Badlar+425bp. The issuance, via Nacion Bursatil Soceidad, comes under a $3bn program.
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Argentina Pushes for Appeal, Sees Downgrade
Argentina’s government has filed to appeal the most recent US court judgment, it says, while Fitch has lowered its rating to CC on the likelihood of a default. In an attempt to avoid a default next month, Argentina appealed a US court order issued last week to pay $1.3bn to holdout creditors. The order is based on a previous ruling that Argentina must treat holdouts equally to bondholders who accepted 2005 and 2010 bond swaps. In a new twist, the government says that if the US judge arranged a formula offering holdouts the same terms presented in the 2010, Argentina’s Congress could debate it. It is unclear if such a move could be worked out ahead of December 15, when a $3bn payment on GDP-linked warrants to the restructured bondholders is due. “A missed payment on the GDP-linked warrants could trigger a cross default on all exchanged debt securities issued under international law. Subsequently, a missed coupon payment of any other external securities would also trigger a cross default on all exchanged bonds issued under international law,” Fitch says in a report lowering Argentina’s rating to CC from B. The outlook is negative. An Argentina default could set a precedent endangering future restructurings, analysts say.
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BCP Issues Domestic Bonds
Banco de Credito del Peru (BCP) has issued PES200m ($77m) in the domestic bond market. The 2022 bullet bonds have an interest rate of 5.313%, and are the tenth issuance under a PES1.8bn program. Orders opened Monday for the deal, managed by BCP unit Credibolsa and rated AAA/AAA on a national scale. In October, BCP sold PES200m ($77m) in domestic bonds, with the 2022 pricing at par with a 5.5% coupon.
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Camargo Completes Local Debt
Camargo Correa has finalized the sale of BRL600m ($293m) in domestic bonds, according to Anbima. The 2019 debentures pay DI+0.9%, and amortize during the final three years. Caixa Economica Federal managed the sale, done under the rule 476 restricted format.
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JBS Controller Gets Debenture
JEF Participacoes, the controller of meatpacker JBS, has wrapped up the sale of BRL500m ($179m) in domestic bonds, according to Anbima. The 2017 debenture pays DI+1.82% and amortizes monthly beginning in 2015. Caixa Economica Federal managed the sale, done under the rule 476 restricted format.
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Kuo Aims Yield Target
Mexico’s Grupo Kuo is heard out with price thoughts of mid-to-high 6% for a new 2022 NC5 bond, expected at $250m. The conglomerate is scheduled to finish a roadshow today, as it seeks funds for a cash tender targeting its $250m outstanding in 9.75% 2017 bonds. In the tender, Kuo is offering holders $1,053.75 cash per $1,000 principal before a November 30 early deadline, and $1,023.75 per $1,000 through the December 14 final deadline. The offer is contingent on the bond sale. Credit Suisse is managing the tender, and is joined by Citi, Bank of America Merrill Lynch on the new deal, rated BB.
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Mexican Issuers Set For Domestic Bonds
The government of Mexico’s Distrito Federal, and lenders Inbursa and Scotia are each scheduled to tap Mexico’s domestic bond market today. DF is heard seeking to pay Mbonos+85bp on up to MXP2.5bn ($192m) in 15-year bonds, according to a source familiar with the plans. Proceeds will be used to fund public works projects. Banorte-Ixe and Santander are managing the federal government-guaranteed transaction, rated AAA on a national scale. Separately, Inbursa is set to sell up to MXP8bn in 2 and 4-year floating-rate notes. Inbursa, Banamex, Bancomer, HSBC and Banorte-Ixe are managing the transaction, rated AAA on a national scale. For its part, Scotia is offering up to MXP2bn in 3-year floating-rate bonds. Scotiabank is sole lead on the deal, rated AAA. Elsewhere in the market, America Movil was targeting this week for a MXP10bn-MXP15bn 2022 Europeso transaction, but had not yet been heard defining the date.