With an eye on continued growth in infrastructure opportunities in Colombia, Construcciones El Condor could consider issuing a bond of up to $100m in the next two to three years, Alejandro Correa Restrepo, its director of investment, tells LatinFinance. Colombia has a need for continued growth in construction as it relates to infrastructure, with a rising interest in improving road conditions and other forms of transportation, he says. The company will carefully evaluate the opportunities ahead, as it looks to sign on to projects the government is now structuring to allow private companies to propose infrastructure projects. It could also choose to proceed using its own funds, he adds. The builder completed its IPO earlier this year via Bancolombia raising COP162.58bn ($92m).
Category: Bonds
Colpatria Eyes Domestic Bonds
Banco Colpatria could look to issue COP100bn ($56m) in subordinated bonds in Colombia’s domestic market, with the ability to upsize to as much as COP150bn, say sources familiar with the Colombian lender’s plans. The notes are expected to be sold October 5, and will most likely have a 10-year maturity and be IPC-linked. Colpatria, rated AAA on a national scale, is heard to be self-leading the sale. The upcoming issuance is not yet rated, through its most recent subordinated sale got an AA+ mark. In that sale in February, Colpatria issued COP150bn in 10-year subordinated notes paying inflation plus 4.64%.
CFR Eyes Domestic Issue
CFR is expected to issue in Chile’s domestic bond market before the end of the year, assuming stable conditions, according to sources familiar with the Chilean pharmaceutical company’s plans. The issuer has registered an issuance of up to UF4m ($190m), with tranches of up to 10 and 30 years. It would be the Chilean pharmaceutical company’s first bond issuance. Proceeds could be used for planned M&A activity. IMTrust and Santander are managing. CFR is rated A+ on a national scale.
Colombia’s Popular Set to Issue
Banco Popular will look to issue COP250bn ($139m) in Colombia’s domestic bond market, with the ability to upsize to as much as COP400bn, according to a source familiar with the transaction. In the sale expected September 19, the Colombian bank can choose from fixed-rate 18-month, 2-year, and 3-year tranches as well as a 5-year inflation-linked tranche. Popular will self-lead the deal, rated AAA.
CR Refiner Looks for Debt
Costa Rican state oil refiner Recope is preparing up to $200m-equivalent issuance in the domestic and other Central American bond markets, it says. After receiving regulatory approval, the issuer plans a $50m tranche this year, and the remainder next year and 2014. The proceeds will be used in the development of several projects, including expansion of the Moin terminal. The issue is rated AAA on a national scale.
European Banks Seen Holding on to LatAm Assets…for Now
With several sales of LatAm assets by European banks already completed this year, and partial equity flotations planned, core LatAm banking assets are still unlikely to go on the block. This was the thinking of investors and other market watchers even before last week’s announcements of European bond buyback plans lifted markets. “European banks have so far avoided selling the crown jewels. My sense is that we are seeing the light at the end of the tunnel in Europe, even in Spain, and unless there is a total disaster in Europe, you’re unlikely to see big asset sales by European banks in Latin America,” Marcos Brujis, CIO at IFC Asset Management Company, a division of the private sector arm of the World Bank, tells LatinFinance. One senior Sao Paulo-based banker says Spanish banks are in a bind as Latin businesses represent their best hope for generating future profits. “For now, it’s ‘let’s muddle through. This tactic is manageable and the banks can keep things moving with IPOs and partial floats.They are doing all they can to avoid selling controlling stakes. But we will have to see whether what happens in Europe triggers a rethink,” he says. IIF chairman Charles Dallara tells LatinFinance that the twin impact of the eurozone crisis and tighter regulation in Europe has “clearly accelerated the process of deleveraging” across emerging markets, including in Latin America. “What worries me most is that the efforts to solve the problems [in Europe] in a fundamental sense are still not coming together. The rather mild relief we’ve been given in global markets over the last few weeks is likely to disappear fairly soon” he says. Still, Dallara cautions against any hasty moves by lenders. “I would certainly caution European banks against unloading their Latin assets in any across-the-board fashion. Over the next decade or two those institutions that have positioned themselves well to compete in the local markets are going to find those positions pay substantial dividends
Ford Preps Next MXP Bond
Ford Credit de Mexico will look to issue up to MXP2bn ($154m) in 2-year bonds on September 19, according to sources familiar with the auto finance services company’s plans. The issuance is part of an MXP8bn program. Actinver, HSBC, Banorte-IXE and Scotiabank are managing. In September 2011, Ford Credit de Mexico sold MXP1bn in domestic floating-rate bonds. The 1.5-year deal priced at TIIE+95bp.
Infonacot Plans Local Retap
Mexico’s Instituto Fonacot is preparing to raise MXP1bn ($77m) through a second reopening of its 2014 bonds in the domestic market. 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. A 15% greenshoe is possible. Scotia and BBVA Bancomer are managing the transaction, rated AAA on a local scale.
Mexichem Launches Tender
Mexichem has launched a cash tender offer targeting its $350m outstanding in 8.750% 2019 bonds, it says, ahead of what is expected to be a $1bn sale of new 2022 and 2042 bonds this week. The chemicals producer is scheduled to meet today and Tuesday with investors in London, New York, Los Angeles and Boston. The issuer plans a $700m 2022 bond and $300m 2042 bond, according to rating agency reports assigning Ba1/BBB minus/BBB minus ratings to the proposed deal. In the tender, Mexichem is offering holders $1,245 per $1,000 cash, which includes a $30 consent payment to holders that tender and adopt proposed covenant amendments before the September 13 deadline. Moody’s moved the outlook on Mexichem to positive from stable due to the refinancing, noting the credit’s strong credit metrics, improved business profile and relatively strong industry conditions in its major Latin American markets. Proceeds from this week’s bond sale will be used to fund the tender and to refinance other debt, including $600m borrowed under a $1bn revolving credit facility. Citi, HSBC, JPMorgan and Morgan Stanley are handling the tender offer, the new bond sale, and an upcoming equity follow-on expected to raise as much as $1bn.
Santander Brasil Adds Greenshoe
Santander Brasil has added $50m to Thursday’s reopening of its 2017 bonds, bringing the total to $550m. The Asian market addition drew more $300m in demand, according to sources familiar with the transaction. The bank reopened the Baa1/BBB 4.625%-coupon bonds Thursday at 101.291 to yield 4.30%, or UST+362.5bp. Bank of America Merrill Lynch, Credit Agricole, Santander and Standard Chartered managed.