Brazil’s America Latina Logistica Malha Norte (ALL) has sold BRL160m ($79m) in domestic bonds, it says. The 2020 bullet pays 10.10%. Caixa managed the sale, done under the rule 476 restricted format.
Category: Bonds
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AutoBan Completes Debenture
Brazil’s AutoBan has completed a BRL1.1bn ($539m) domestic bond sale that includes a tranche qualifying as an infrastructure debenture, according to the CVM, becoming the first widely-marketed deal to take advantage of the legislation allowing tax exemptions to investors. The toll road operator owned by Companhia de Concessoes Rodoviarias (CCR) had tightened pricing from initial expectations and upsized the 2017 debenture from BRL950m during bookbuliding last week. A BRL965m tranche pays 109% of the DI, inside of a 109.2% ceiling, and amortizes 4x annually beginning 2015. A BRL135m bullet inflation-linked tranche qualifying under the infrastructure law pays 2.71%, set to the yield of the government NTN-B bond plus 0.0%, in from an NTN-B plus 0.25% limit. Proceeds will go towards debt repayment and projects. As with most of the early sales using the infrastructure debenture format, AutoBan’s sale was directed entirely to Brazilian buyers, with DCM bankers expecting international participation only after the asset class has developed somewhat. Banco do Brasil, Caixa and HSBC managed the sale, rated AAA on a national scale.
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Caixa Preps Investor Meetings
Brazil’s Caixa Economica Federal is scheduled to meet bond investors this week, ahead of what would be an international bond debut. The state-owned lender will visit the US, Europe and Asia Tuesday through Thursday. Bank of America Merrill Lynch, Deutsche Bank and HSBC are managing the process. Caixa is rated BBB.
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Cencosud Plots Acquisition Debt Takeout
After announcing the $2.6bn acquisition of Carrefour’s Colombian operations Thursday, Cencousud plans to access both the bond and equity markets to help fund the purchase. The Chilean supermarket operator signed a $2.5bn 12-18 month bridge loan from JPMorgan, which it will seek to replace. To do so, Cencosud plans a $1.5bn equity capital increase and the issue of $1bn 10-year bonds in the international market. The equity sale should occur within four months and the bond sale within three, according to remarks from company officials cited in local news and wire reports. The equity sale would come after a $1.23bn follow-on completed in June. The retailer’s last visit to the international bond markets came in early 2011. It sold $750m in 2021 bonds at a 5.661% yield, with 3.5x demand, through Deutsche Bank, JPMorgan and Santander. Fitch has placed Cencosud’s BBB minus rating on negative watch following Thursday’s purchase. Barclays calls the acquisition “credit negative,” seeing it as expensive by traditional metrics, and expresses concern about increased leverage. “The pressure for companies to act on buying opportunities even if their balance sheets are already stretched is a reality of the hyper-competitive food retail sector, but we do not believe bonds fully reflect these risks,” the bank says.
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Banco Industrial to Visit Buyside
Guatemala’s Banco Industrial plans to meet bond investors Monday through Wednesday of next week. The tour is to include stops in the US, Europe and LatAm. Bank of America Merrill Lynch and Citi are managing. The BB/BB/Ba2 bank last issued in July 2011, raising a $150m 10-year subordinated Tier 2.
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BR Malls Retaps Perp
BR Malls has raised $175m through a reopening of its 8.5% NC5 perpetual bond, in order refinance its 9.75% perp callable next year. The shopping mall developer and manager reopened the bond at 108.50, following 108.25-area initial talk, to yield 7.834% to maturity, and 5.62% to the call. Demand was heard to be around $1bn. BTG Pactual and Deutsche Bank managed the sale, rated Ba1/BB. The bond was originally sold in 2011 and now has $405m outstanding. It is the region’s first perpetual sale since a $250m sale from Magnesita in March. BR Malls brings the deal amid a relatively slow week in the DCM. Investors await a likely $500m 10-year from Bolivia, and Santander Chile is working out an offshore RMB deal in Hong Kong.
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EcoRodovias Completes Debenture
EcoRodovias has completed an BRL800m ($394m) domestic bond sale, according to regulatory documents. The road operator was able to tighten interest rates below target when bookbuilding was completed last week. A BRL240m 2018 tranche pays the DI+0.79%, coming tight to a DI+1.25% ceiling. A BRL160m inflation-linked 2019 tranche, pays 5.0%, tight to a 6.50% limit. The largest allocation went to the BRL400m inflation-linked 2022 portion, paying 5.35%, inside of a 6.85% limit. The first two tranches amortize during the final two years, and the third in the final three. The issuer elected not to exercise an overallotment option. Proceeds from the sale will refinance existing debt and fund working capital. Itau, BTG Pactual and Bradesco managed the sale, rated AA+ on a national scale. Brazil’s domestic market is undergoing a busy stretch of debenture issuance, which is hoped to indicate the start of a longer-term trend driven by lower Selic rates changing investors’ priorities toward corporate debt. On deck are pricings from state utility Eletrobras (BRL2bn), infrastructure operator Triunfo (BRL350m), road operator Triangulo do Sol Auto-Estradas (BRL620m) and Algar Telecom (BRL220m).
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Eletropaulo Wraps Up Local Bond
Brazil’s Eletropaulo has completed a BRL750m ($369m) domestic bond sale, according to regulatory documents. The 2018 debenture pays DI+1.24%, a level coming in line with a ceiling set last month, when the AES subsidiary raised the limit from DI+1.09%. The issuer elected not to exercise an overallotment. Proceeds are to be used to repay debt coming due in November, and for working capital. Bradesco and Itau managed the sale, rated Aa1 on a national scale.
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Chilean Railway Preps Local Bond
Chilean state railway company EFE could look to issue up to $350m-equivalent in UF-denominated bonds in the local market before the end of the year, according to sources familiar with the plans. The issuer is in the process of registering the transaction, 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, the issuance is guaranteed by the state. EFE last issued in the domestic bond market in 2005, according to Dealogic data.
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Findeter Postpones Securitization
Colombia’s Findeter has postponed a COP250bn ($139m) domestic bond that had been scheduled to price today, according to a source familiar with the process. The new timing is unclear. The securitization of Findeter’s loans was set to have the option of an up to COP120bn 2-year tranche, an up to COP144bn 4-year tranche, and an up to COP136bn 6-year tranche. Findeter is managing the sale, rated AAA on a national scale.