Mexico’s Grupo Alfa is preparing to refinance $1bn in international debt, according to a company spokesman. The conglomerate is seeking to tackle up to $600m from petrochemical company Alpek, up to $250m from telecommunications firm Alestra and up to $300m from car parts manufacturer Nemak. With maturities coming only in 2014, the issuer has some time, but it would like to take advantage of low interest rates. Alfa has more than $3bn in total debt. Alestra is rated B+/B1/BB minus and Nemak is rated BBB on a national scale only.
Category: Bonds
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DASA Readies Local Debt
Diagnosticos da America (DASA) is preparing to raise BRL250m ($123m) in Brazil’s domestic debt market, it says. The2016 bond is expected to pay the DI plus up to 0.80%. The medical services company is raising funds to repay shorter-term debt and for working capital. It does not indicate the hiring of any bookrunners, and a DASA official does not respond to a request for additional comment.
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Development Bank Aims for Dim Sum
Issuance of offshore Chinese rinimnbi (RMB) bonds, or Dim Sum bonds, is coming back into focus for LatAm bond issuers, with Central American development bank Cabei adding itself to the list. Cabei is considering a RMB300m-RMB500m ($48m-$80m) transaction with a 3-year or 5-year tenor in what would be its debut in the market, Treasurer Jose Felix Magana tells LatinFinance. It sought to issue in the offshore RMB market last year, but held back as it wanted to first see improvements in swap rates. The issuer has yet to select banks and expects to do so early next year, he says. It has looked at America Movil’s and Korea Development Bank’s RMB-denominated transactions as two interesting reference points for exploring the market. Cabei is also considering a euro-denominated issuance and a Mexican domestic market transaction in the near future. The MXP transaction would likely be a 5-year sale of up to MXP1.5bn in 2Q 2013. Cabei is coming off of an S&P upgrade to A from A minus in August. Cabei’s most recent international bond was a $250m 2017 dollar bond, priced to yield 4.075% in February. Fellow development bank CAF is also looking at a Dim Sum bond. Santander Chile held investor meetings in Hong Kong and Singapore last week, and is said to be still in discussion with investors for an issuance as soon as this week. Deutsche Bank, Goldman Sachs and Standard Chartered are managing. America Movil was the regional debutant in the market in February, and was followed by Banco do Brasil.
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ETB Advances Bond
Colombia’s finance ministry has given Empresa de Telecomunicaciones de Bogota (ETB) shareholders approval to issue up to $600m in the international bond market, ETB says. The telecom is expected to select banks within the next week, according to DCM bankers following the process. The potential transaction, which received shareholder approval earlier this year, could be dollar or peso-denominated. If ETB were to pursue an issue, it would represent a debut in the international bond market, according to Dealogic data.
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Findeter Preps Securitization
Colombia’s Findeter is planning to raise COP250bn ($139m) Thursday through a domestic securitization that can be increased to as much as COP400bn. The bonds backed by Findeter’s loan portfolio includes 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.
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Mayab Sets Securitization Date
Concorcio de Mayab plans to raise up to MXP4.5bn ($351m) in Mexico’s domestic bond market on October 24, according to sources familiar with the sale. The road operator had initially been targeting a pricing date for the securitization as soon as today. The ICA-owned operator plans a 2034 peso-denominated tranche with an 11.3-year average life, with size of the tranche not to exceed 40% of the total issuance, and a 2034 UDI-denominated portion with an 11.7-year average life and no size limit. The bonds are backed by Kantunil, Merida-Cancun toll road revenues, and the borrower is looking to finance a road project in the Playa del Carmen region extending 54 kilometers and scheduled for construction in the second half of 2012 and to repay existing debt acquired by Mayab before it was purchased by ICA in 2008. BBVA Bancomer, HSBC, inbursa and Morgan Stanley are managing the transaction, rated AA/A2 on a national scale, with Morgan Stanley and Cofinza as structuring agents.
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Taesa Upsizes Local Jumbo
Brazil’s Transmissora Alianca de Energia Eletrica (Taesa) has raised BRL2.16bn ($1.06bn) in the domestic bond market, exercising the full overallotment option to raise the total from BRL1.6bn. A BRL665m 2017 tranche pays the DI+0.78%, inside a DI+1.0% limit, it says. A BRL793m inflation-linked 2020 portion pays 4.85% and a BRL702m inflation-linked 2024 tranche pays 5.10%. The Cemig unit had initially wanted to raise BRL2.5bn, but lowered the target to BRL1.6bn when it began marketing. Proceeds will help refinance short-term debt totaling BRL2.08bn taken out in 2011 and 2012. The company says the two longer transactions would not qualify for the Novo Mercado for debentures, as they failed to meet the conditions. Itau managed the sale, rated AAA/Aa1 on a national scale.
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CAF Eyes Dim Sum, AUD
Corporacion Andina de Fomento (CAF) is evaluating the offshore renminbi (RMB) and Australian markets as new sources of funding outside of its well-established USD, EUR and JPY and CHF curves, officials from the bank say. The regional development bank is considering a size reasonable for those markets, which should be 200m-equivalent or less with a tenor below 5-years. “There is appetite and we could offer interesting opportunities to high grade investors looking for EM exposure,” CFO Hugo Sarmiento tells LatinFinance, noting that a potential transaction would have to be competitive versus its dollar curve. Sarmiento says it could advance plans within the next couple of months and possibly meet investors, market conditions permitting. CAF has seen the World Bank’s and IFC’s Dim Sum deals, as offshore RMB is known, as interesting reference points. CAF has finished its $2.5bn financing plan, but does not rule out opportunistic trades as a prefunding method for 2013. The supranational is also expanding to new investor types that typically gravitate towards supranational paper like central banks and government owned institutions. CAF so far this year issued in six markets including three Swiss Franc deals and a couple of private placement deals in Germany.
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Camil Unit Lands Debenture
Camil Alimentos’ Docelar Alimentos e Bebidos unit has raised BRL170m ($84m) in Brazil’s domestic bond market, according to Anbima. The 2017 debenture pays the DI+1.35% and amortizes twice annually beginning 2015. Santander managed the transaction, done under the rule 476 restricted format. In May, Cosan and Camil agreed to merge their food divisions, including Docelar, which operates the Uniao and Da Barra sugar brands. In the deal, Camil assumed BRL275m in debt and is to pay BRL70m cash within three years, with Cosan taking an 11.72% stake in Camil.
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Gas Natural Plots COP Issue
The Colombian unit of Gas Natural expects to issue COP300bn ($167m) in the domestic bond market, according to sources familiar with the plans, targeting an October 24 pricing. The issuer can choose from 5 and 7-year tranches and issue fixed rate or IPC-linked bonds. It is raising funds to refinance debt and for working capital. Bancolombia and BBVA are managing the deal, rated AAA on a national scale. The subsidiary of the Spanish energy company has been approved to issue up to COP500bn.