The Monterrey-Saltillo toll road plans to raise up to MXP4.5bn ($345m) in Mexico’s domestic bond market on November 27. 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, 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+.
Category: Bonds
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Rio Rail Operator Gets Local Debt
Supervia Concessionaria Transporte Ferroviario has raised BRL150m ($73m) in domestic bonds, according to Anbima. The operator of a rail network in Rio de Janeiro State is paying the DI+1.5% on the 2014 debenture. Banco do Brasil managed the sale, done under the rule 476 restricted format.
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Sifco Postpones LM Plans
Brazil’s Sifco has postponed a $200m 2018 international bond sale and cash tender offer for its 2016 bonds, according to investors who have seen a statement from the company. “Sifco announced today that it has temporarily suspended its bond plans and cash tender because of market conditions, opting instead for taking more favorable alternatives in the Brazilian market,” the company is said to inform the buyside. The issuer was heard considering widening yield guidance from the 12.75%-area level it had communicated, before choosing to postpone. The manufacturer of forged components had met accounts on four continents to market the operation. In the tender, Sifco had been targeting any and all of its $75m outstanding 11.50% 2016 bonds, offering $960m per $1,000 principal. The transaction was subject to the sale of the new 2018s. Goldman Sachs, Citi, and Banco Pine were managing investor meetings and tender offer.
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Uruguay Brings Long Bond for LM
Uruguay emerged Tuesday to sell $500m in new 2045 bonds, as part of a liability management exercise aiming to replace shorter-term debt. On the back of a brief US roadshow ending November 2, the Baa3/BBB minus/BB+ sovereign took advantage of cheap rates, and recent rating upgrades, in its first new issuance this year. The 2045 priced at par with a 4.125% coupon, to yield in line with 4.125%-area price talk. The bonds were trading at reoffer in the grey Tuesday afternoon, according to a trader. Demand was heard topping $1bn, and a 10% greenshoe was possible during Asian hours. The level compares to the 3.85% yield seen Tuesday on Uruguay’s 2036 bonds. “Tender prices look fair and give investors incentive to tender. We are given an opportunity to own a new benchmark at market price, though the outstanding 2036 bonds are trading a long way from par,” says a participating London-based EM investor. Though the pricing comes at a level offering less value than other regional long bonds, the investor adds, notably Chile’s 2042. “We like the credit and Uruguay is mostly doing the right thing, but we didn’t see value for that kind of long duration at that level,” adds an EM investor who passed on the deal. Proceeds from Tuesday’s sale will fund part of a tender offer to existing bondholders expiring Friday. Uruguay is targeting $5.02bn outstanding in 12 series of dollar bonds due 2013-2036 with coupons between 7.000%-9.250%. It is also offering cash to holders of $2.72bn outstanding in 12 series of USD and EUR-denominated bonds due 2013-2027 and with coupons of 6.875%-9.250%.The total issuance of 2045 bonds through Tuesday’s sale and the exchange is not to top $2bn total, and the total cash payment in the cash portion of the exchange is not to exceed $500m. BNP Paribas and Citi are managing the process. Uruguay hadn’t issued in the international market since December 2011, when it sold UYP19.91bn ($1bn) in inflation-linked 2028 bonds, also part of an exchange. The sovereign h
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Winery Set for CLP Issue
Vina Concha y Toro is scheduled to tap Chile’s local bond market today, raising up to UF1.5m ($71m) to refinance short-term debt. The Chilean winemaker is expected to pick among a 12-year UF series with a 7-year grace period and 3.60% coupon, and a 6-year UF-tranche with a three-year grace period and 3.50% coupon. Banchile-Citi is managing the deal, rated AA/AA minus on a national scale.
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Scotiabank Plots MXP Bond
Scotiabank is preparing to sell up to MXP2bn ($151m) in floating-rate bonds on Mexico’s domestic market, according a source familiar with the transaction. The bank is targeting a November 28 pricing for the 3-year bonds paying a spread to the TIIE benchmark. Proceeds are to be used for general corporate purposes. The issuance is part of an MXP15bn program. Scotiabank is sole lead on the transaction, rated AAA.
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CART Hits the Road
Toll road operator Concessionaria Auto Raposo Tavares (CART) has started investor meetings for a planned BRL750m ($371m) domestic bond, according to regulatory documents. A portion of the issuance is targeting the newly created infrastructure debenture market. The borrower plans an inflation-linked 12-year bond that can be divided in up to two tranches and pay up to 8.0%. The exact definition will be determined during bookbuilding, scheduled to conclude by December 12. The debentures amortize beginning 2015. Proceeds would fund investment projects and replace BRL400m in debt due at the end of the year. Banco do Brasil, Banco Votorantim, Bradesco and HSBC are managing the sale, rated A+ on a national scale.
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Hydro Generator Raises Debenture
Brazil’s Corumba Concessoes has raised BRL200m ($98m) in the domestic bond market, according to Anbima. The hydroelectric generator’s 2020 debenture pays 128.85% of the DI, and amortizes beginning in 2016. Bradesco managed the sale, done under the rule 476 restricted format.
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Pemex Readies Domestic Jumbo
Mexican state-owned oil company Pemex is turning its fundraising plans to the domestic market, and aims to issue up to MXP25bn ($1.89bn), according to sources familiar with the transaction. In the works are a 5-year floating-rate bond, a 10-year peso-denominated tranche and a 15-year UDI-denominated portion. Pemex plans an investor lunch on November 14 and is targeting a November 30 pricing. Proceeds from the issue, rated AAA on a national scale, are to be used for investment purposes and to finance projects. Banamex, BBVA Bancomer, HSBC, Morgan Stanley and Santander are managing the transaction, with Actinver and CI Casa de Bolsa are co-managers. Pemex last issued in the domestic market in 2011, raising MXP10bn.
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Pulp Producer Preps Local Bond
Eldorado Celulose e Papel is planning to raise BRL940m ($459m) in Brazil’s domestic bond market, it says. The plan is for an inflation-linked 2027 debenture paying 7.41%. Proceeds will be used for capex at its Tres Lagoas facility in Mato Grosso do Sul. It does not name the bank on the sale, to be done under the rule 476 restricted format, and officials were unavailable for comment.