ENAP has started a roadshow for a local market issue of $300m-equivalent, according to sources familiar with the Chilean state-owned oil company’s plans. It is expected to issue next month, perhaps the week of January 7 or 14. The issuer can choose among a 3-year bullet in pesos at 6.4%, a 5-year bullet in UF at 3.4%, and a 21-year bullet in UF at 3.7%. Banchile-Citi, JPMorgan and Scotia are managing the sale, rated AAA/AA+ on a national scale.
Category: Bonds
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Sodimac Plans Issue
Sodimac will soon look to issue UF2.5m ($121m) in the domestic bond market, say people familiar with the plans of the home improvement unit of Chilean retailer Falabella. It can choose from a 3.4% coupon 5-year UF bullet tranche, a 6.5% coupon 5-year peso bullet tranche, a 3.6% 10-year UF bullet tranche and a 3.7% 21-year UF tranche with a 10-year grace period. The timing is not clear. Banchile leads the deal, rated AA on a national scale. In August, Sodimac sold COP300bn in Colombia’s domestic market, in an issue that saw some 2.8x demand.
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YPF Pushes Back Bond Sale
YPF plans to price Tuesday up to ARP4bn ($821m) in domestic bonds, it says, a transaction that can be upsized to ARP4.5bn. The sale had been originally expected to price today. 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 has sold ARP150m in 19% 1-year bonds to retail investors in a sale closed Friday, upsizing from ARP50m.
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Compartamos Preps MXP Reopening
Mexico’s Banco Compartamos is heard interested in a TIIE+59bp price range for a reopening of its 2015 floating-rate domestic bonds, scheduled for December 19. The microlender wants to reopen the bonds for MXP1bn ($78m), an amount that would bring the new outstanding size to MXP2bn. This amount would complete a desired MXP2bn outstanding size for three separate transactions done in 2010, 2011 and 2012 under an MXP6bn program. Proceeds will be used to refinance short-term indebtedness. Banamex is leading the transaction, rated AAA/AA on a national scale. The original MXP1bn bond priced at TIIE+130bp in 2010.
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Emgesa Issues Domestic Bonds
Emgesa has issued COP500bn ($278m) in Colombia’s domestic bond market, upsizing to the maximum amount available. The generation company sold COP300bn in 2022 bonds at IPC+3.52% and COP200bn in 2027 bonds at IPC+3.64%. The issue saw 2.6x demand, a higher level than Gases de Occidente’s issue earlier this week. The company’s solid numbers and the fact that it’s a non-financial issuer could have contributed to the interest in the paper, according to a source following the deal. The proceeds will be used for refinancing intercompany debt and helping to fund the El Quimbo hydroelectric power project. Corredores Asociados, Correval, BBVA and Serfinco managed the sale, rated AAA on a national scale.
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Mexican Lender Lands Wide
Mexico’s Grupo Financiero Interacciones has issued MXP1.2bm ($94m) in 2015 floating-rate bonds, less than the MXP1.5bn sought and 15bp wide to TIIE+135bp price talk. The A/A+ bank specializing in sub-national and public infrastructure lending priced at TIIE+150bp. Proceeds will be used to maintain liquidity and for general corporate purposes. Interacciones self-led the transaction, rated A/A+ on a national scale. Last month it raised MXP700m in 2022 subordinated bonds at TIIE+250bp.
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Pine Leads Brazilians into Huaso Market
Banco Pine has become the first Brazilian Huaso bond issuer, raising UF1.5m ($72m) in Chile’s domestic bond market. The sale comes as several issuers had contemplated the asset class since its inception more than three years ago, with limited results. “It will open the doors for new companies to come to Chile to diversify the market, and that’s good for everybody,” says a person familiar with the sale. Bankers generally note that Huaso deals must make sense from a cost of funds perspective. So, although there are other interested borrowers in the pipeline, there should be only a couple of deals at most in 2013. The mid-sized lender’s 2017 bullet bond priced at a discount with a 6.0% coupon to yield 6.75%, or government bonds plus 400bp. The issuer had been expecting a 7.00%-7.25% range, according to people familiar with the transaction, noting that the level it got is very competitive to what Banco Pine could do in the dollar market. Institutional investors made up more than half the book, with wealth management accounts making up a sizeable portion of the remainder, they say. Surprising those who expected a larger Brazilian issuer to be the Huaso debutant, Pine first met Chilean investors in September. It has a UF6m program of up to 10 years in Chile. BTG Pactual, Celfin and JPMorgan led the deal, rated A minus on a national scale. In August, Mexico’s Corporacion Geo completed the first Huaso since 2010, though the smaller-than-expected size of UF0.34m was not encouraging. The homebuilder priced the 6.5% 2020 at a 7.8% yield via Santander. Previously, only Mexico’s America Movil and Peru’s BCP had sold Huaso bonds.
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Toll Road Postpones UDI Bond
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.
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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.