The Monterrey-Saltillo toll road plans to raise some MXP4bn ($311m) in Mexico’s domestic bond market, according to sources familiar with the transaction, likely in November. The idea is to sell UDI-denominated notes with maturities of 22 or 23 years, with proceeds repaying bank loans and subordinated debt with the government Fonadin fund. The toll road, owned by Spain’s Isolux-Cosan, has been operational for almost a year. Santander, ING and Bank of America Merrill Lynch are bookrunners on the transaction.
Category: Bonds
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Agriculture Fund Preps MXP Bond
Fondo Especial para Financiamentos Agropecuarios (FEFA) plans to issue up to MXP3bn ($233m) in the Mexican domestic bond market October 2. The trust managed by development bank Fideicomisos Instituidos En Relacion Con La Agricultura (FIRA) plans to issue 3-year bonds paying a spread to the TIIE. Proceeds would fund operations. Established in 1954 by Mexico’s federal government, FIRA offers credit and guarantees among other services to livestock, fishing forestry and agribusiness sectors in Mexico. Banamex, BBVA Bancomer and HSBC are managing the AAA rated transaction. In a May domestic market debut, FEFA sold MXP3bn in 3-year bonds at TIIE+25bp.
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CSN Wraps up Local Debt
Brazil’s Companhia Siderurgica Nacional (CSN) has finalized the issue of BRL1.57bn ($775m) in domestic bonds, according to Anbima. The 2015 notes amortize in two installments in the final two years, with a BRL1.07bn tranche paying 105.8% of the DI and a BRL500m tranche paying 106.0% of the DI. The steelmaker is raising funds to repay debt. Banco do Brasil managed the sale, done under the rule 476 restricted format.The company could spend at least $2.5bn on ThyssenKrupp’s Brazilian slab plant, according to Barclays capital, if a rumored transaction goes through.
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Ecopetrol Advances Local Debt Plans
Colombia’s Ecopetrol is seeking regulatory authorization to issue domestic bonds in order to increase its financing options, says a source familiar with the state oil company’s plans. Companies that register can issue within three years, the source says, adding that the request for authorization doesn’t necessarily mean a deal is on the way. The state-controlled Colombian oil producer – one of the few local non-financial issuers to make use of the local markets – last issued domestically in 2010, selling $556m-equivalent in 5, 7, 10 and 30-year bonds.
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Embratel Finalizes Debentures
Brazil’s Embratel has finalized the sale of BRL2.15bn ($1.06bn) in domestic bonds, according to Anbima. The 2017 bullet pays the DI+1.0%. Bradesco managed the sale, done under the rule 476 restricted format.
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ENA Ready for Bond
Panamanian toll-road operator Empresa Nacional de Autopista (ENA) is heard aiming for a low 5%-area yield for a new 2028 bond transaction. The Baa3 deal is to be issued through the ENA Norte Trust as soon as today at an expected $600m size. The bonds with an expected maturity of 2023 and 6.86-year average life feature no mandatory amortization and a 100% cash sweep. Moody’s projects full amortization of the notes prior to maturity. Additional bondholder protections include a debt reserve fund that is equal to six months of interest payments cash funded at closing, a 12-months forward looking major maintenance reserve, and a capex reserve. The Republic of Panama is supporting the transaction by putting approximately $100m of equity into the unit, which operates the Corredor Norte road in Panama City. The bonds are secured by toll revenue from the currently operational portion of the asset. ENA was formed to acquire and manage companies that have road concessions from the government. In August last year, ENA raised $395m through a 2025 bond yielding 5.75% and a 2019 priced to yield 5.25%. HSBC and Global Bank, managers of the previous sale, are coordinating the process this time around.
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Infonacot Talks Price
Mexico’s Instituto Fonacot is heard looking to pay TIIE+50bp-area for a MXP1bn ($78m) second reopening of its 2014 domestic bonds. The sale is scheduled for Thursday. A 15% greenshoe is possible. The Mexican state-run lender priced the original MXP1.67bn 3-year bonds at TIIE+65bp in December 2011, and in March emerged for another MXP1.15bn at the same spread. Scotia and BBVA Bancomer are managing the transaction, rated AAA on a local scale.
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ALL Plots Debentures
Brazil’s America Latina Logistica Malha Norte (ALL) is preparing to sell BRL160m ($79m) in domestic bonds, it says. The 2020 bullet would pay 10.10%. Caixa is managing the sale, done under the rule 476 restricted format.
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Bancolombia Extends Early Tender
Bancolombia has extended the early deadline on a tender offer for its 2017 bonds until the October 5 full expiration date, it says. Earlier this month, the bank launched the exchange offer targeting the $400m outstanding in the 6.875% 2017 subordinated bonds, aiming to replace them with new 5.125% 2022 subordinated bonds, fungible with the notes it sold for cash in a recent $1.2bn offering. The lender is offering holders the new bonds at a rate of $1,135 per $1,000 principal amount, and says holders representing 47% have accepted the offer already. Bank of America Merrill Lynch, Citigroup and Morgan Stanley are managing the process. The Baa3/BBB minus lender sold the 2022 Tier 2 bonds earlier this month at a 5.20% yield through the same banks.
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Bancomer Taps Tier 2
BBVA Bancomer emerged Monday to add $500m to its 2022 Tier 2 bond. With demand reaching $1.5bn from approximately 105 accounts, the Mexican bank reopened the 6.75% coupon bonds at 109.89 to yield 5.45% or UST+373bp, tight to 5.50% guidance. The A3/BBB sale offered investors 12bp-13bps concession, bankers on the deal say. Proceeds will be used to strengthen the bank’s capital structure and for general corporate purposes. BBVA, Bank of America Merrill Lynch and Goldman Sachs managed the transaction. Bancomer sold the original $1bn in 2022 subordinated Tier 2 bonds in a July transaction.