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%.
Category: Bonds
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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.
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Porcao Slices off Domestic Bond
Restaurant operator Brasil Foodservice Group (BFG) has completed the raising of BRL600m ($286m) in Brazil’s domestic bond market, according to Anbima. The 2020 inflation-linked debenture pays 8.0%. BFG is raising funds for expansion and for working capital. NSG Positiva managed the operation. BFG operates the Porcao, Garcia & Rodrigues and Porcao Gourmet restaurants.
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Scotia Peru Lands Tier 2
In its international DCM debut, Scotiabank Peru has raised $400m in new 2027 NC10 Tier 2 bonds, while getting $2.3bn in demand from at least 170 accounts. The Bank of Nova Scotia subsidiary priced at par with a 4.50% coupon, to yield tight to 4.625%-area guidance, which followed 5%-area price thoughts. Investors reported pricing inside of Banco de Credito del Peru’s (Baa3/BBB) $350m 2027 Tier 2 bonds trading to yield 4.70%-4.80% and seen as a direct comp despite differences in rating. “Bottom line great transaction and it shows the high quality credit of Scotiabank and fundamentally strong market. If you’re a good credit you will have sufficient oversubscription to tighten pricing and in this case below your peers,” says a DCM banker away from the trade. The 15-year subordinated step-up bonds have the fixed coupon for 10 years and then revert to a floating rate. Proceeds will be used to strengthen the bank’s capital. Bank of America Merrill Lynch, Goldman Sachs and Scotia managed the sale. The deal represents Scotia Peru’s first dollar offering since a $175m diversified payment rights securitization done privately in 2010, according to Dealogic data.
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CMPC to Visit ECM, DCM
Empresas CMPC plans to sell bonds and raise equity capital in 2013, it says. The need comes after the Chilean pulp and paper company received final board approval to start the $2.1bn expansion of its Guaiba plant in Brazil. It expects to raise $500m in equity capital in the first half of 2013, followed by another $250m at a later point, and will seek shareholders’ approval January 24. It will also look to sell $500m in bonds in the international or local markets. Also, it expects a $1.2bn 10-year loan from BNDES and will look to shed some non-core assets, such as a 7.7% it holds in financial services firm Bicecorp.
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EFE Brings Size Back to Chilean Market
EFE has issued UF7.8m ($373m) in domestic bonds, giving the Chilean local market its largest sale in at least three years. The state railway company priced the 2037 bullet at 100.13 with a 3.70% coupon to yield 3.79%, or the BTU30 bond plus 91bp. The issuance saw 2.2x demand. Banchile-Citi managed the transaction, rated AAA on a national scale and guaranteed by the state. EFE last issued in the domestic bond market in 2006. Thursday’s sale was the largest domestic transaction in USD-equivalent terms since a $472m-equivalent deal from Transelec in 2006, though in purely UF terms it is only the largest since a UF10m sale from CMPC in 2009, according to Dealogic data.
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Emgesa Powers toward Local Issue
Emgesa is planning to issue up to COP300bn ($166m) in Colombia’s domestic market on December 12, with the ability to upsize to COP500bn, it says. The generation company’s bonds are expected with a maturity between 10 and 15 years, and either inflation-linked or fixed-rate. The funds will be used for refinancing intercompany debt and financing for the El Quimbo hydroelectric power project. The issuance is rated AAA on a national scale.
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Hites Taps Private Placement
Chilen retailer Hites has issued a UF1m ($48m), 2017 6.2% bond in a private placement, according to sources following the sale. The proceeds will be used for investment and to prepay debt. Celfin managed the sale, rated BBB+/BBB on a national scale.