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.
Category: Bonds
Posted inDaily Brief
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.
Posted inDaily Brief
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
Posted inDaily Brief
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.
Posted inDaily Brief
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.
Posted inDaily Brief
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.
Posted inDaily Brief
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%.
Posted inDaily Brief
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.
Posted inDaily Brief
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.
Posted inDaily Brief
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.