Chile’s Corpbanca is planning a subordinated bond sale in the international markets, it says, as part of the funding for its $1.28bn acquisition of Helm Bank. The Corp Group Interhold entity raised $130m in the cross-border markets in 2010, through a 2015 bond led by Corpbanca and Larrain Vial. Corpbanca’s New York branch has raised $62m in 2014 bonds through two transactions this year, led by BNP Paraibas. Corpbanca is rated Baa1/BBB+.
Category: Bonds
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Norwegian Sets up Shop in Rio
Norwegian bank DNB has opened an office in Rio de Janeiro, it says, to be led by Arne Christian Haukeland. The bank has had a presence there since 1968, but decided to establish an office to better meet customer needs, which include offshore and energy advising. DNB has already participated in several deals in the region, notably as joint lead on a $500m 3-year bond for OSX sold in the Norwegian market in March. It also was a lender to a 3-year $180m credit facility for Transelec in August.
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Negative Outlook for Vene on Wide Chavez Victory
A wider-than-expected margin of victory for President Hugo Chavez in Venezuela’s presidential elections should mean increased pressure on Venezuelan assets, analysts say. With today the first session of open US markets following the election – which Chavez was estimated to have won by 10% – at least some degree of selloff was expected. “We expect a knee-jerk reaction of downward pressure on Venezuelan bond prices, and if President Chavez decides to deepen his ‘XXI Century Socialism’, we would expect Venezuela’s creditworthiness to erode further in the medium term,” Nomura says, noting the market had been positioning for a close election. “The victory by Chavez should weigh on Venezuelan bonds when U.S. markets reopen on Tuesday,” Citi says, expecting a 100bp-150bp widening. Others expect a smaller reaction. “It is difficult to expect much of a selloff considering that the closing credit spreads unwound most of the Capriles optimism as investors took profits ahead of the event,” Jefferies says, noting spreads had already unwound back to relative levels from when the elections were mostly viewed as a non-event.
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OAS Seeks Up to $500m Bond
Brazilian infrastructure group OAS is looking to raise $300m-$500m through a 2019 cross-border bond, according to Fitch which assigns the transaction a B rating. OAS is scheduled to wrap up European and US fixed-income investor meetings on Thursday, and follow with what would be its international DCM debut. Proceeds raised from the bonds, unconditionally guaranteed by OAS, Construtora OAS and OAS Investimentos, will be used to refinance indebtedness. Banco do Brasil, Bradesco, BTG Pactual, Deutsche Bank, HSBC and Itau are managing.
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Sicrea Nears ABS Retap
Sistema de Credito Automotriz (Sicrea) plans a MXP300m ($23m) reopening of its 2017 bonds backed by trade receivables Thursday. In the original deal, Sicrea priced MXP1bn of the 2017 bonds at TIIE+160bp. ING is managing the transaction, rated AAA on a domestic scale. Sicrea is an association of Nissan dealers which provides auto loans.
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Walmart Chile Targets Local Debt
Walmart Chile is preparing to issue up to UF12.5m ($597m) in the domestic bond market before the end of the year, according to people familiar with its plans. A roadshow is possible as soon as this month. The proceeds would be used to refinance the retailer’s liabilities. Santander is managing the transaction.
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YPF Preps Local USD Bond
Argentina’s YPF plans to issue up to $50m in 2-year dollar-denominated domestic bonds, it says, in a follow-up to a $319m-equivalent peso sale last month. The subscription period for the sale, which could be upsized to as much as $175m, begins today with pricing to finish by October 17. BACS, Banco de Galicia y Buenos Aires, BBVA Frances, Banco Hipotecario, Santander Rio, Banco Macro and Nacion Fideicomisos are managing. Last month, YPF raised $255m-equivalent in 2015 domestic bonds paying Badlar plus 4.0%, as part of a larger sale that also included short term debt.
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Yum Subsidiary Set for MXP Bond
Mexico’s Premium Restaurant Brands is scheduled to price today MXP500m ($38m) in domestic 2015 bonds, according to a person familiar with the sale. Price talk for the floating-rate bond, which comes with a 60% partial guarantee from Scotia, is TIIE+250bp-300bp. Scotia is managing the transaction, rated A+ on a national scale. The fast food retailer is a unit of Yum International with 500 restaurant locations within 31 Mexican states.
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EcoRodovias Tightens Domestic Bond
EcoRodovias has concluded bookbuilding for an BRL800m ($394m) domestic bond sale, according to investors following the process, clinching below-target interest rates on each of the three tranches. The road operator’s 2018 tranche, expected at BRL240m, will pay the DI+0.79%, coming tight to a DI+1.25% ceiling. An inflation-linked 2019, expected at BRL160m, pays 5.0%, tight to a 6.50% limit. An inflation-linked 2022, expected at BRL400m, pays 5.35%, inside of a 6.85% limit. The issuer is heard not exercising an overallotment option. The first two tranches amortize during the final two years, and the third in the final three. Proceeds from the sale will refinance existing debt and fund working capital. Itau, BTG Pactual and Bradesco are managing the sale, rated AA+ on a national scale. Bookbuilding results for a BRL950m debenture sale from fellow road operator Autoban – among the first to qualify as infrastructure debentures – are expected as soon as this week.
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BCP Raises Local Bond
Banco de Credito del Peru (BCP) has sold PES200m ($77m) in domestic bonds, according to a banker on the sale. The 2022 priced at par with a 5.5% coupon. Proceeds are marked for general bank purposes. BCP’s Credibolsa unit managed the sale, rated AAA on a national scale.