Brazilian shopping mall operator Aliansce has raised BRL100m ($50m) in the domestic bond market, according to Anbima. The 2017 debenture pays TJLP+5.0% and amortizes annually beginning in 2014. Santander managed the sale, done under the rule 476 restricted format. Aliansce also plans to sell shares in a follow-on equity offering before the end of the year.
Category: Bonds
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Argie Holdouts Get Favorable Ruling
A US federal appeals court has upheld a ruling that Argentina’s holdout creditors must be paid at the same time as creditors who accepted bonds in its 2005 and 2010 debt restructuring deals. The uling is clearly adverse to the interests of the Argentine government, Goldman Sachs says, though it remains unclear that payment flows to service the restructured debt can be attached in order to enforce the ruling. The dispute stems from Argentina’s $100bn sovereign default in 2001.
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Brazilian Lender Raises Bond Debut
Caixa Economica Federal has priced a $1.5bn bond issue, offering investors long-awaited access to the expanding government-owned bank, as well as rare 5-year Brazilian investment-grade paper. “There is little Brazil debt in the 5-year space that brings value to us, and with Caixa we’re getting access to a reasonable size position that gives us the opportunity to own something that is owned by the federal government,” says a participating London-based EM portfolio manager. Starting out with low 200bp talk for a 5-year bond, the BBB/Baa1 lender added a 10-year tranche at a similar yield indication. Total books for Caixa’s cross-border debut were heard reaching $9bn-$10bn, with the 2017 getting more than $6bn demand. The $1bn 2017 priced at 99.439 with a 2.375% coupon to yield 2.495%, or UST+175bp, the tight end of 200bp-area guidance. The $500m 2022 priced at 99.548 with a 3.500% to yield 3.554% or UST+180bp. The bond was heard up 0.25 points in the grey, according to an investor. “Caixa’s deal still gives value despite tightening from UST+200bp, which at that level was cheap relative to comps,” says a senior New York-based EM portfolio manager following the trade. Bankers on the deal say the 5-year priced 25bp inside Banco do Brasil’s (BdB) 2017 bonds, quoted at a G-spread of around 200bp. The 10-year tranche was seen coming at perhaps 20bp inside BdB. Investors also note a pickup to Brazilian development bank BNDES’ 2020 bonds, quoted at a G-spread of around 129bp. With Caixa’s 100% government ownership, the bonds are expected to go into the EMBI index and should provide natural demand for indexed managers, investors and bankers say. The issuance is part of a medium-term note program of up to $5bn and its proceeds will be used to expand its lending activities. Bank of America Merrill Lynch, Deutsche Bank and HSBC managed the sale. Caixa had been considered as a candidate for international issuance for some time, given its growing importance as a lender in Brazil, a
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Gas Cos Target November COP Bonds
Colombia’s Promigas is targeting November for a domestic bond sale of up to COP580bn ($319m), and could be joined by issuances of COP200bn each by Surtigas and Gases de Occidente. The interest is in placing all three in November, according to people familiar with the issuers’ plans but at least one could wind up issuing in December, due to the volume of potential issuers in the marketplace. Promigas has also been eying the dollar markets this year, but has been leaning toward a domestic deal because of favorable rates and longer tenors. Corficolombiana is managing the deal, rated AAA on a national scale. Gas Natural’s Colombian unit sold COP300bn in 5 and 7-year bonds last week, and Promigas would likely aim for a longer tenor, the people following the deal say, given market conditions.
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Samarco Mines $5.6bn in Demand
Brazil’s Samarco Mineracao has raised $1bn in new 2022 bonds, getting more than $5.6bn in orders for its debut in the international market. The BBB/BBB Brazilian miner priced the bond at 99.320 with a 4.125% coupon to yield 4.209%, or UST+245bp, the tight end of UST+262.5bp-area guidance which followed mid-to-high UST+200bp whispers. The deal was said to offer a 50bp pickup to Vale’s 2022 bonds, which were quoted at 195bp on a curve-adjusted basis. Approximately 310 accounts participated, with fund managers comprising 68%, insurance and pension funds 14%, banks and private banks 12% and hedge funds 6%. US buyers represented 75% of orders with 23% coming from Europe and 2% from Asia. Proceeds are marked for addressing a new capex program and for general corporate purposes. Citi, HSBC and JPMorgan managed. Samarco is 50% owned by BHP Billiton and 50% by Vale and is one of the world’s largest seaborne exporters of iron ore pellets. It is a familiar name to the loan markets, most recently having raised a $450m 11-year term loan in a club deal closed earlier this month.
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Santander Mexico Aims to Follow IPO with Bond
Banco Santander Mexico is preparing fixed-income investor meetings ahead of a possible dollar bond transaction. The BBB/BBB+ rated Mexican lender plans to visit accounts in Boston and Los Angeles on Tuesday and New York on Wednesday. Deutsche Bank, Goldman Sachs and Santander are managing. Last month, Santander Mexico raised $4.1bn in Mexico’s largest-ever IPO.
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Banco Industrial Upsizes Bond
Guatemala’s Banco Industrial has raised $500m in the international bond market, upsizing from an expected $300m. Investors put in for $4.5bn in orders for what lead managers are calling the largest-ever non-sovereign bond from a privately-owned Central American issuer. Guatemala’s largest bank priced the Baa3/BB 2022 bond at par to yield 5.500%, tight to 5.500%-5.625% guidance that followed low 6.000% whispers. “We saw value in today’s Banco Industrial deal. It’s the top bank in Guatemala, has strong support from equity holders, improving credit metrics and upward momentum for the ratings,” says a participating EM portfolio manager. The bonds were trading up 0.50 in the grey, according to the investor. While difficult to comp to Industrial’s illiquid $150m 10-year subordinated Tier 2 bonds, leads say the deal offered investors at least 130bp pickup to the Guatemala sovereign. “This deal demonstrates investors’ search for diversification and yield in a fundamentally strong market. It is an issuer’s market,” adds a DCM banker away from the deal. Approximately 268 accounts participated in the deal, which follows a 3-day US, European and LatAm roadshow. Proceeds from the sale will be used to address Banco Industrial’s short-term debt and fund growth of its credit portfolio. Bank of America Merrill Lynch and Citi managed the transaction, issued by the Industrial Senior Trust entity with a guarantee from Banco Industrial.
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Caixa to Split Bond Issuance
Brazil’s Caixa Economica Federal has added a 10-year tranche to its benchmark-size bond transaction, alongside the previously announced 5-year, according to sources following the sale. Guidance of UST+200bp-area has been set for each tranche, with pricing expected today. A $1.0bn-1.5bn size is expected, according to ratings agencies. The BBB/Baa1 government-owned lender finished fixed-income investor meetings in the US, Europe and Asia this week. Bank of America Merrill Lynch, Deutsche Bank and HSBC are managing the bond sale, representing a debut in the international markets.
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Chile Taps Tight Dollar Funds
The Republic of Chile has raised $1.5bn during its first visit to the dollar markets this year, landing what the issuer calls the lowest-ever coupon and yield for an emerging market bond at the 10 and 30-year points. “It’s a very strong credit. No new issue premium and difficult to see much value in such tight spreads. Even so, the book was hugely oversubscribed,” says a North American EM portfolio manager following the process. Indeed, demand for the 10-year tranche reached $4.1bn while the 30-year saw $4.8bn, with each getting approximately 300 accounts to participate. The $750m 2022 priced at 98.858 with a 2.250% coupon to yield 2.379%, the tight end of UST+60bp-area guidance which followed UST+75bp-area whispers. A $750m 2042 priced at 98.398 with a 3.625% coupon to yield 3.714%, the tight end of UST+80bp-area guidance following earlier UST+95bp whispers. The bonds were quoted trading up 0.30 in the grey, after being up as much as 0.50 earlier in the day, according to investors. “In terms of trading in the grey, it tells me they tightened to the right point. Like everything else these days, they priced extremely tight,” says a second EM investor. Chile revisited the debt capital markets with the objective of developing its yield curve and issuing a long-end reference benchmark for future corporate Chilean borrowers, as well as to pre-finance at low rates. Bank of America Merrill Lynch, HSBC and JPMorgan managed the A+/Aa3 rated transaction. Further investment-grade sovereign issuers are expected to emerge, investors say, with Brazil tipped to possibly return before year-end or early 2013 to retap its 2023 and bring it closer to a $3bn targeted benchmark size. Uruguay is another candidate mentioned by the buyside that could take advantage of low rates.
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Colombian Prices Hotel-Backed Bond
Hoteles Estelar has issued COP80bn ($44m) in 2027 asset-backed bonds in Colombia’s domestic market. The bonds pay IPC+4.25%, and are guaranteed by the La Fontana hotel in Bogota and Hotel Intercontinental in Cali. The hotel operator plans to use half of the proceeds to repay debt, with the other half earmarked for a landmark hotel project in Cartagena. Corficolombiana and Casa de Bolsa led the transaction, rated AAA on a local scale. Estelar debuts in the bond market with the deal, and will look to issue shares in a few years, say people familiar with its plans.