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.
Category: Bonds
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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%.
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Vene Bonds Tighten on Chavez News
Venezuela’s bonds tightened Monday as Hugo Chavez hinted at the possibility he may be incapacitated due to deteriorating health and named Vice President Nicolas Maduro as his chosen successor. The benchmark 2027s tightened 100bp to 8.3%, according to Bulltick Capital. “A change at the presidential level could sustain the current downward trend in yields,” the shop says in a note, bringing Venezuela closer to single B credits including Ukraine (yielding 6.9%), Egypt (5.5%), and Mongolia (5.7%). Venezuela’s constitution states that if the president is incapable of being inaugurated, the president of the national assembly, Diosdado Cabello, would assume power until elections are called within 30 days. If the president is incapacitated after inauguration, the vp would take over, and also call elections. While the leadership outlook has changed somewhat, analysts find Chavez’s party would still have considerable strength without him. “In the short term, Venezuelan bond prices are likely to be well supported, as the market prices in more aggressively the “regime change” hypothesis. However, in the medium term, we expect more volatility and potentially downside to asset prices, as that hypothesis is far from a foregone conclusion,” Nomura says in a note. “We are of the opinion that any of the possible Chavez successors will be more moderate than Chavez, and we expect a transition in line with the constitution. Therefore, we reiterate our overweight call on Venezuela/PDVSA assets,” Barclays says in a note.
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Cement Maker Ponders HY Bond
Mexico’s Grupo Cementos Chihuahua is considering an international bond, according to sources familiar with the plans. The idea is for a 7-year transaction pari-passu with a loan facility the cement maker is syndicating, with the two sharing collateral. The 5-year, $210m senior secured loan pays Libor+500bp, tied to a leverage grid. BBVA, Citi and Scotia are leading the loan. Cementos Chihuahua last visited the international bond market in 2006, raising $250m in 2016 and 2018 bonds, according to Dealogic data.
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Gases de Occidente Advances Bond
Gases de Occidente has been authorized to sell COP200bn ($110m) in Colombia’s domestic bond market, it says. The issuer can choose from five possible tranches, with terms between two and 20 years. The proceeds are being used to replace existing liabilities and pay for investments. Corficolombiana is managing the sale, rated AAA on a national scale. Elsewhere in Colombia’s market, Emgesa is planning to issue up to COP300bn ($166m) Wednesday, with the ability to upsize to COP500bn.
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BR Properties Raises Domestic Bond
BR Properties has raised BRL500m ($240m) in Brazil’s domestic bond market, it says. The real estate manager’s 2014 debenture pays DI+0.64%, landing inside of DI+0.71% expectations. Proceeds will go to repay debt. Banco do Brasil, Bradesco, BTG Pactual and HSBC managed the sale, done under the rule 476 restricted format. The deal follows a BRL600m July transaction in the broader rule 400 market, including a 2017 tranche paying the DI+1.08% and an inflation-linked 2019 at 5.85%.
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Interaciones Readies MXP Sub Debt
Mexico’s Banco Interacciones is looking to issue up to MXP700m ($54m) in subordinated bonds in the domestic market on December 13, according to investors following the process. The 10-year notes will represent the third issuance under a subordinated notes program, are eligible for Tier 2 capital treatment for up to MXP2bn, and pay a spread over the TIIE benchmark. Proceeds will be used to maintain liquidity and general corporate purposes. The bank specializes in sub-national government and public infrastructure financing. Interacciones is leading the deal, rated Baa1/A on a national scale.
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Logistics Operator Eyes Debentures
Tegma Gestao Logistica is planning to raise BRL200m ($96m) in the domestic bond market, it says. The specialist in transportation and storage plans a 5-year tranche paying the DI plus up to 0.9% and a 6-year tranche paying the DI up to 1.13%. The amount of each portion is to be determined during the bookbuilding process. Tegma is raising funds for general corporate purposes and working capital. BTG Pactual and Itau are handling the sale, done under the rule 476 restricted format.
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Pine Nears Huaso Try
Brazil’s Banco Pine is preparing a bond issuance in Chile, according to regulatory documents. The bank plans a UF1.5m ($72m) 5-year bullet bond with a 6% coupon. In September, Pine was heard meeting investors to discuss a so-called Huaso bond, with JPMorgan and Celfin managing the process. The mid-size Brazilian lender has registered a UF6m program of up to 10 years in Chile, which Fitch assigns an A minus national-scale rating. The company is looking to diversify its funding, while Chilean investors with excess cash must look for investments outside of their market. In August, Mexico’s Corporacion Geo issued UF0.34m in the Chilean market, bringing the first Huaso sale since 2010, though at a smaller than expected size. 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 executed Huaso bonds.