Airport operator Aeropuertos Dominicanos Siglo XXI (Aerodom) is meeting the buyside this week, according to investors, ahead of what could be a $550m bond sale. The operator of 6 of the 9 airports in the Dominican Republic was due to meet West Coast accounts Thursday, with JPMorgan managing. In assigning a Ba3 rating, Moody’s notes Aerodom’s strong market position, control over approximately 42% of all passenger traffic in the Dominican Republic, expectations of continued economic and tourism growth, and a proven ability to increase regulatory tariffs. The notes are being issued to refund all of Aerodom’s existing debt, as well as to provide a one-time distribution to Advent International, an equity sponsor at the Latin American Airport Holdings parent.
Category: Bonds
EFE Local Issue on Track
EFE should be tapping the Chilean domestic debt market in December, say people familiar with the state railway company’s plans. It is heard looking to issue $350m-equivalent in UF-denominated bonds in the local market. Banchile-Citi is managing the deal, which is expected with a maturity of more than 20 years and a coupon of 3.7%. The proceeds are expected to be used for refinancing liabilities and financing the company’s plans. Rated AAA on a national scale, the issuance is guaranteed by the state. EFE last issued in the domestic bond market in 2005, according to Dealogic data.
Fovissste Brings Well-Bid RMBS
While cross-border debt issuance has remained on hold this week, Mexico’s bond market remains open for business, with government housing lender Fovissste raising MXP4.99bn ($382m). The UDI-denominated RMBS offering saw 2.4x demand. The 30.3-year bond with 5.4-year average pays 3.56%, or Udibonos+267bp, inside of Udibono+270bp expectations. Proceeds are to fund lending operations. BBVA Bancomer, Banorte-Ixe and Santander managed the sale, rated AAA on a national scale. The government-backed lender previously visited the market in August, raising MXP4.8bn in 2042 notes paying 3.85%. US stock and bond Markets were expected to open again Wednesday following closure due to severe weather.
Bus Operator Ready for Securitization
Price talk for IAMSA’s 15-year bond sale is Mbonos+390bp-area, according to people familiar with the sale. The bus operator will look to price the MXP3.5bn ($268m) securitization in the Mexican domestic bond market on Wednesday. The transaction is backed by the bus operator’s 1,438 buses and future ticket sale revenues, and will raise funds to repay bank debt. Santander is managing the sale, rated AAA/AA minus on a national scale.
Fovissste Set for RMBS
Mexican government housing lender Fovissste is looking at Udibono+270bp-area pricing for an up to MXP5bn ($382m) RMBS sale scheduled to price today, according a person familiar with the transaction. The deal has a 30-year maturity, and is backed by the agency’s mortgages. BBVA Bancomer, Banorte-Ixe and Santander are managing the sale, rated AAA on a national scale. The government-backed lender last visited the market in August, raising MXP4.8bn in 2042 notes paying 3.85%.
Paraguay Targets January Bond for Roads, Power
Paraguay is looking at January 2013 for an anticipated benchmark-size 10-year bond, raising funds to support the power and road sectors, an official at the country’s finance ministry tells LatinFinance. “The plan has to be approved by congress in December, and if all goes as planned, part of the proceeds – at least $200m – would be used to finance Paraguayan state power company Ande, in addition to power and road projects,” he says. An issuance of up to $550m is in the budget. The official says Paraguay has selected banks and lawyers in anticipation of the sale. He declines to disclose names, though Citi took the sovereign to visit fixed-income accounts in New York and Boston in September. Paraguay is rated B1/BB minus. The sovereign has been aiming to return to the international bond markets, though it has said it is not in urgent need of funds. Banco Continental Paraguay paved the way earlier this month, pricing a $200m 8.875% 2017 bond. Paraguay will no doubt also be inspired by the recent success of Ba3/BB minus/BB minus Bolivia, which raised $500m at a 4.875% yield, or UST+306bp, after seeing $4.25bn in demand.
Porcao Eyes Local Bond
Restaurant operator Brasil Foodservice Group (BFG) is preparing to raise BRL600m ($297m) in Brazil’s domestic bond market, it says. The 2020 inflation-linked debenture would pay 8.0%. BFG is raising funds for expansion and for working capital. It does not name the lead manager on the sale. BFG operates the Porcao, Garcia & Rodrigues and Porcao Gourmet restaurants.
QGOG Talks Price
Queiroz Galvao Oleo e Gas (QGOG) is heard aiming for a yield in the neighborhood of UST+500bp for a 7-year bond, according to investors. The Brazilian oil services provider was scheduled to complete a roadshow Monday. HSBC, BAML and Citi are managing. The debt is to be raised at the QGOG Constelation unit, and rated BB+/BB minus. QGOG has tapped the project bond market, raising a $700m 7-year drillship securitization priced to yield 5.45% last year, through Citi, HSBC and Santander. It was one of several regional issuers on the road this week. With the US equity and bond markets expected to close again today due to severe weather, the timing of the issuance expected this week remained unclear late Monday.
Road Operator Prepares Infrastructure Debenture
Toll road operator Concessionaria Auto Raposo Tavares is planning to raise up to BRL750m ($371m) in Brazil’s local bond market, according to regulatory documents, with a portion 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 should pay 7.5%-8.0%. It plans to complete pricing by mid-November. 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.
Utility Plots Domestic Bond
Companhia Paranaense de Energia (Copel) is planning to raise BRL1bn ($493m) in Brazil’s domestic bond market. The utility plans a 2017 bond paying the DI plus up to 0.99%, and amortizing in two equal installments in 2016 and 2017. Copel plans to use proceeds for investments and working capital. Banco do Brasil is heard to be managing the transaction, to be done under the rule 476 restricted format.