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.
Category: Bonds
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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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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.
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IFC Takes Corpbanca Stake
The IFC continues its investments in expanding LatAm financial groups, agreeing to spend $225m on an about 5% stake in Chile’s Corpbanca, according to a spokeswoman. The IFC expects to complete the buy by the end of the year or early 2013. The investment should help Corpbanca grow in Latin America, particularly in its service to small and medium enterprises, it says. Mexico, Peru and Brazil are among the countries of interest to Corpbanca in terms of expanding its reach. The IFC has made other equity investments in LatAm financial groups with cross-border expansion plans. It took a $200m position in Colombia’s Suramericana last year to aid with the groups purchase of ING pension assets, and also has a position in Davivienda. CorpBanca bought the Santander unit in Colombia for $1.16bn earlier this year.
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Markets Ready to Move on Venezuela Result
Venezuela had yet to announce Presidential election results late Sunday night, with analysts expecting the market reaction to depend both on the margin of victory and the behavior of the loser. “If [President Hugo] Chavez wins and the differential is very tight, the selloff might be contained. If Chavez wins by a wide margin, there could be a more pronounced selloff,” Boris Segura, economist at Nomura, tells LatinFinance ahead of the election. A victory by opposition candidate Henrique Capriles would likely mean a tightening of Venezuela and PdVSA credit spreads. Venezuela CDS could tighten 150bp-200bp on a Capriles victory, Segura says. The downside of a Chavez victory on CDS would likely be smaller, perhaps 50bp-100bp widening, he adds. Venezuela CDS Spreads were around 700bp Friday. It was difficult for analysts to establish a base-case scenario, with the polls in the country giving diverging indications leading up to the election. “The market has to some extent already priced a Chavez victory,” Goldman Sachs says in a report. “We would have to assume that the past week of credit spread tightening unwinds on the disappointment of a Chavez victory of around 50bp-100bp to 800bp-850bp on 5-year CDS,” Jefferies says in a report. The alternative scenario could mean credit spreads tightening 200bp towards 500bp on 5-year CDS, it adds. Results were expected late Sunday night, with local news reporting extended voting hours due to heavy turnout.
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SIPyT Targets October Sale
Servicios Integrados de Pasaje y Turismo (SIPyT) is aiming to sell up to MXP3.5bn ($251m) in Mexico’s domestic bond market on October 25. The 15-year securitization is backed by receivables from bus fleet operations, and will be denominated in UDIs or pesos. The transaction would be a debut for SIPyT, a unit of Mexico’s Inversionistas en Autotransportes Mexicanos Servicios (IAMSA). Santander is managing the deal, rated AAA on a national scale. Crecimiento Programado is structuring agent.
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Veracruz Preps Securitization
The Mexican state of Veracruz is preparing to raise up to MXP6.9bn ($540m) through a securitization of future federal payment flows, according to offering documents. Veracruz is targeting three separate tranches of MXP2.3bn each – a 15-year fixed-rate peso-denominated tranche with an 11-year average life, a 25-year UDI-denominated portion with a 19-year average life and a 15-year peso portion paying a spread to the TIIE with an 11-year average life. The bonds feature a guarantee from Banobras for up to 45% of the total size per tranche. Proceeds will be used for part of the state’s MXP30bn refinancing plan, as it seeks to refinance liabilities and improve its debt profile. The bonds are expected to price October 24. Banamex, Banorte-Ixe and BBVA Bancomer are managing the deal, rated AA/AA+ on a national scale.
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Cemex Continues Maturity Extension
Fresh off of last month’s $7bn refinancing agreement, Cemex has returned to the bond market to raise $1.5bn to continue its maturity extension efforts. Taking advantage of improvements in its own secondary performance and of continued investor appetite for yield, the cement maker generated $7bn in demand for the new 2022 NC5. “Their yields have recovered and their debt swap transaction helped, and they must have thought now is a good time to come to the market,” says a credit analyst following the sale. Cemex yields have rebounded to single digits after seeing double digit levels in December, he notes. The B+/B minus bond priced at par with a 9.375% coupon, to yield at the tight end of 9.375%-9.500% guidance following 9.500%-area whispers. Bankers following the sale – now the issuer’s most liquid outstanding bond – calculate that the deal priced 20bps through the Cemex 2020 bonds. Participation came from 375 accounts, with mainly US buyers involved, including both EM dedicated and high yield dedicated investors. Proceeds will be used to repay existing debt under the refinancing agreement. JPMorgan, Barclays, RBS, Credit Agricole, HSBC and ING led the transaction. Last month Cemex completed an agreement to extend maturities of $7bn in 2014 debt out to 2017 and 2018, getting 93% acceptance. It plans to raise at least $750m-equivalent through a Colombian IPO of its ex-Mexico assets, though the timing of the process – heard managed by BBVA, Citi and Santander – remains unclear. The cement maker also plans additional asset sales to help with a $1bn paydown it must make in 2013 under the agreement.
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CFR Mulls Local, International Bonds
Chile’s CFR is heard considering an international bond sale in addition to already established domestic issuance plans. The pharmaceutical company has registered to sell up to UF4m ($191m) domestically, with tranches of up to 10 and 30 years. The local issue is expected before the end of the year. Maturities will likely be closer to 5 and 20 years, and the total size less than UF4m, especially if the company chooses to pursue a cross-border sale, according to sources familiar with the issuer’s plans. A deal in either market would represent CFR’s first bond issuance. Proceeds could be used for M&A activity. IMTrust and Santander are managing the local deal. CFR is rated A/A+ on a national scale.