Colombia’s Banco Finandina is poised today to round out a COP200bn ($110m) issuance program with a COP27.6bn private placement maturing May 2015, at DTF+1.99%. Corredores Asociados, Correval, Interbolsa, Bancolombia, Casa de Bolsa and Serfinco will lead the transaction, say sources familiar with the deal. The transaction will complete a program that began last August with COP72bn, followed by COP100.5bn in May. In August 2011, Finandina’s issue saw some COP97bn in demand. It sold a COP41bn 2013 tranche paying the IBR+2.09%, a COP12bn 2014 piece paying IBR+2.50%, and a COP19bn 2016 inflation-linked portion paying 4.20%. In May, it issued a COP64.7bn 2015 series paying DTF+1.85%, a COP12.3bn 2016 series paying DTF+1.99%, and a COP23.5bn 2015 series paying IBR+1.84%. The bonds are rated AA on a local scale.
Category: Bonds
Masisa Issue Nears
Chile’s Masisa will look to issue up to UF2m ($94m) on Friday, say sources with knowledge of the board products manufacturer’s plans. If spreads are too high, the company could hold off until the next week and aim for an issue date of Sept. 3 or 4 instead. Masisa can choose from a 5.00% 2017 bullet bond and a 5.30% 2033 note with a 10-year grace period. Proceeds would refinance existing debt. BCI and Scotia are leads on the deal, rated A minus on a local scale. The company a roadshow last week for the deal. Masisa is also understood to be looking next year to the international markets for additional refinancing.
Santander Chile Lands Zero Coupon Bond
Santander Chile priced a zero coupon bond last week on the back of reverse inquiry. An $85.9m 2013 bond priced at 98.574 or spread Libor plus 100bp. DB, JPM and Santander managed the transaction, rated A/A+.
Southern Copper Hits the Road
Peru-based Southern Copper Corporation plans to meet bond investors in Europe, Latin America and the US starting Friday. The Baa2/BBB/BBB rated unit of Mexican miner and railroad operator Grupo Mexico will visit accounts beginning in Santiago on Friday, followed by visits to London and Lima the following Monday, and New York and Los Angeles Tuesday, before wrapping up in Boston on Wednesday. A global SEC-registered transaction may follow subject to market conditions. The senior unsecured bonds will comprise two tranches with maturities of 2022 and 2042, says Fitch, which assigns a BBB rating. Proceeds will be used for general corporate purposes including capital expenditures. Credit Suisse, HSBC and Morgan Stanley have been mandated. Southern Copper last issued in April 2010, pricing a dual tranche $1.5bn split between a $400m 10-year and $1.1bn 30-year tranche with Credit Suisse, Goldman Sachs and Morgan Stanley. The 2020 and 2040 bonds were trading at 3.5% and 5.5% in yield respectively, according to a trader.
Agrosuper Mulls Issue
Chilean food products company Agrosuper plans to raise up to UF3.5m ($164m) in the local bond market on September 6, according to sources familiar with its plans. The issuer can choose between three tranches,
a 3.5% 2019 UF-denominated series, a 6.5% 2019 peso-denominated series and a 4.0% 2033 UF-denominated series. A roadshow started last Thursday and is scheduled to end Monday. IMTrust is managing the sale, rated A+/ AA minus on a national scale. Agrosuper last issued in December, selling UF5m in 3.8% 21-year bonds at a 4.78% yield, through Banchile and LarrainVial.
Brazil Opens LF Market for Development Banks
Brazil’s central bank has allowed development lenders to sell letras financeiras (LF) in the domestic debt market, it says, in a move aimed at stimulating infrastructure investment. Development lenders, such as the BNDES and Banco do Nordeste do Brasil, will be allowed to offer long-term senior and subordinated debt in the same way as the country’s commercial lenders currently do. “The goal of this is to broaden the use of LFs as a fund-raising instrument for the long run and pave the way for the development of a secondary market for them. The changes will permit development banks to keep helping projects in the regions where they operate,” the central bank’s Conselho Monetario Nacional says.
CCR Unit Targets Infrastructure Debentures
Brazil’s AutoBan, a toll road operator owned by Companhia de Concessoes Rodoviarias (CCR) is planning a BRL950m ($470m) debenture sale, it says. The issue qualifies as an “infrastructure bond,” or a local bond offering tax advantages to investors, due to its use of proceeds. If AutoBan is able to price, it could be the first, though fellow road operator Rota das Bandeiras is also preparing a similar bond. AutoBan plans a BRL850m tranche and a BRL100m tranche, both due 2017, with the smaller said to be separated for foreign issuers. The deal is able to be upsized to as much as BRL1.28bn. Banco do Brasil and HSBC are managing. The deal is not yet rated.
Costa Rica OK to Issue
Costa Rica’s congress has given its second and final vote in favor of issuing $4bn in bonds over a 10-year period, with a maximum of $1bn per year. In what would be its first international bond since 2004, the Baa3/BB+/BB+ sovereign is expected to kick start an RFP process ahead of issuing a benchmark size 10-year. “We expect the new bond to be issued in approximately two months; the law establishes a series of time-consuming procedures that need to be completed before the new bonds can be issued,” Nomura says in a report. Costa Rica is turning to the dollar market to tap low interest rates and ease pressure on local currency financing.
Eletrobras Defines Domestic Jumbo
Brazil’s Eletrobras has given additional details of its planned issue of BRL2bn ($990m) in the domestic bond market, ahead of a late October pricing. It plans inflation-linked bonds divided into a 2018 tranche paying up to 6.0%, and a 2022 tranche paying up to 6.3%, according to a prospectus. The exact amount and interest rate for each will be determined during the pricing period, expected in late October. Investor presentations are scheduled to begin September 24. The proceeds are to be used for the electric company’s investment needs, and are part of a BRL4.5bn fundraising plan. BTG Pactual and Santander are managing the sale, which has not ben assigned a rating.
EM Debt Takes in Funds
EM debt funds booked net inflows of $426m during the week ended August 22, according to EPFR. In terms of performance, the class was up 0.63% for the week ended August 23, for a year-to-date gain of 11.69%, according to Lipper. Global income funds gained 0.73% during the week, and are up 5.56% ytd. International income funds rose 1.16% during the week, for a 4.87% gain ytd.