After seeing a successful sale derailed by a presidential impeachment in June, Banco Continental Paraguay is planning another try for an international bond. The Ba3/BBB minus lender has scheduled investor meetings starting Monday in Chile, and visiting Los Angeles and New York before finishing in Switzerland October 11. A 5-year dollar bond transaction could follow, according to sources familiar with the plans, targeting a yield in the low 9% range. Bank of America Merrill Lynch is managing. Continental priced a $200m 8.875% 2017 bond at par in June, getting $450m in demand, through opted not to settle due to the impeachment of President Fernando Lugo rattling the market. BAML and Citi managed that sale, which the Paraguayan bank had indicated at the time it would retry.
Category: Bonds
Even Closes Local Bond
Brazil’s Even Construtora e Incorporadora has wrapped up a BRL150m ($74m) in the domestic bond market, according to Anbima. The developer’s 2017 debenture pays the DI+1.6%, in line with expectations, and amortizes in equal parts in each of the final three years. Caixa Economica Federal managed the sale, done under the rule 476 restricted format.
BdB Adds Asia Greenshoe
Banco do Brasil has added $175m to its 10-year senior bond, exercising the 10% greenshoe option during Asian market hours and bringing the total issue size to $1.93bn. Banco do Brasil priced the new 2022 senior unsecured bond Tuesday at 98.978 with an 3.875% coupon to yield 4.000%, or UST +237bp, tight to 4.125%-area guidance revised from earlier 4.375%-area initial talk. Banco do Brasil, BNP Paribas, Bradesco, BTG Pactual, Citi and JPMorgan led the transaction, with Banco Safra and Mizuho as co-managers.
Brazil Sees First Infrastructure Debenture
While small even by domestic market standards at BRL25m ($12m), ACS’s Montes Claros transmission project has priced Brazil’s first infrastructure debenture to be placed with investors, according to sources familiar with the transaction. The 17-year inflation-linked debenture pays 8.75%, and features a security package pari-pasu with the issuer’s BRL123m in BNDES debt. Proceeds will fund about 10% of the transmission project. BNP Paribas structured and managed the transaction, placed with 18 of the bank’s Brazilian wealth management clients under the rule 476 restricted format. CCR’s AutoBan toll road unit is expected to finalize pricing as soon as next week for the first infrastructure debenture done under the more widely marketed rule 400 format. The BRL950m sale is to be the first sizeable infrastructure debenture, or domestic bond sold under legislation passed last year offering incentives to foreign and individual buyers as long as the use of proceeds is infrastructure-related. AutoBan plans a BRL850m 2017 tranche paying up to 109.2% of the DI, and a BRL150m 2017 inflation-linked tranche paying a fixed rate set to the yield of the government NTN-B bond at the time of pricing plus up to 0.25%. The deal is able to be upsized to as much as BRL1.28bn. Banco do Brasil, Caixa and HSBC are managing the sale, rated AAA on a national scale. For now infrastructure debentures large and small are likely to marketed to individuals, bankers say, with foreigners participating once the new asset class is better established.
Brazilian Debutant Preps Investor Meetings
Brazilian infrastructure group OAS plans to meet bond investors in Europe, and the US starting Friday, ahead of what would be a debut sale in the international market. The B/BB minus rated Brazil-based infrastructure group will visit accounts in beginning in Switzerland Friday, followed by visits to London, Boston and New York Wednesday before wrapping up in Los Angeles on October 11. A 144A/RegS dollar transaction may follow subject to market conditions. Banco do Brasil, Bradesco, BTG Pactual, Deutsche Bank, HSBC and Itau are managing.
Colpatria Raises Local Funds
Banco Colpatria has raised COP150bn ($83m) in Colombia’s domestic bond market, according to sources familiar with the transaction. The 10-year inflation-linked subordinated bonds pay 4.14%. Demand reached COP497bn Colpatria self-managed the sale, rated AA+ on a national scale, below its AAA senior rating. It previously issued in February, selling COP150bn in similar 10-year notes paying 4.64%.
Ford Credit Raises MXP Funds
Ford Credit de Mexico has sold MXP2bn ($156m) in 2014 bonds in the domestic market, according to sources familiar with the transaction. The auto finance services company priced at TIIE+69bp, inside of TIIE+75bp price talk. The deal was heard 2x oversubscribed with 100 bids. Actinver, HSBC, Banorte-IXE and Scotiabank managed the transaction, rated AA/Aa3 on a national scale.
Inbursa Clinches Domestic Bond
Mexico’s Banco Inbursa has raised MXP5bn ($389m) in the domestic bond market, according to sources familiar with the transaction. The 2015 notes priced at TIIE +25bp, in line with TIIE+23bp-25bp price talk. Proceeds will be used to increase liquidity and grow the bank’s credit portfolio. The bank has issued MXP13bn this year in the domestic market. Inbursa, Banamex, Banorte-Ixe and Actinver managed the transaction, rated AAA on a national scale. Inbursa last issued in May, selling a floating-rate note paying the TIIE+25bp.
OGX Drills Domestic Debt
Brazil’s OGX has finalized the sale of BRL2.1bn ($1.03bn) in Brazil’s domestic debenture market, according to Anbima. The EBX-controlled oil and gas company’s 2022 pays 10.5%. HSBC managed the sale, done under the rule 476 restricted format.
Sanluis Puts Brakes on Bond
Mexican vehicle parts manufacturer Sanluis has postponed plans to raise funds in the international bond market, according to people following the 2022 NC5 bond transaction. After widening the yield target to 10%-area from initial high 9% talk, the issuer was heard generating close to $200m in orders. “The company decided to postpone due to the market not meeting its pricing expectations,” says a person familiar with the transaction. The issuer is heard satisfied with explaining its story and its improvement in credit metrics following a 2011 debt restructuring, and could consider another DCM attempt. Sanluis was looking to raise $200m-$250m in order to refinance debt. Bank of America Merrill Lynch and JPMorgan were managing the Ba3/B/B+ transaction.