Scotia Chile has registered to sell up to UF5m ($233m) in domestic bonds, according to regulatory filings. The 5-year notes would have a 3.5% coupon. The bank does not indicate the timing of the transaction. Scotia is rated AAA on a national scale. In July, Scotia Chile placed a UF2.7m 3.75% 2022 bond at a 3.75% yield, or 120bp over the government benchmark.
Category: Bonds
Posted inDaily Brief
SIPyT Targets August Sale
Servicios Integrados de Pasaje y Turismo (SIPyT), a unit of Mexico’s Inversionistas en Autotransportes Mexicanos Servicios (IAMSA), is aiming to sell up to MXP3.5bn ($251m) in the domestic bond market as soon as this month. The 15-year securitization is to be issued in UDIs or pesos, and would be a debut for SIPyT. The bonds will be backed by its bus fleet and receivables from bus fleet operations. Santander is managing the deal, rated AAA on a national scale. Crecimiento Programado is structuring agent.
Posted inDaily Brief
Market Awaits Wind Bonds
The Oaxaca II and IV wind projects were expected to price today their respective $164.5m and $167.5m 2031 bonds, according to sources following the process. The pair indirectly owned by Spain’s Acciona emerged with yield guidance of 6.5%-area Tuesday. If completed, the two 144A/RegS senior secured transactions, each with an average life of 13 years, would represent the first wind energy project bonds in LatAm. Pricing is being viewed by many in terms of a spread to Mexico’s state-owned CFE, the project’s offtaker, whose 2021 and 2042 bonds yield around 3.20% and 4.90%, respectively. BBVA, BNP, Credit Agricole, Santander and Societe General are managing the deals, each rated BBB minus.
Posted inDaily Brief
Mexican Preps Domestic Toll Road Securitization
Mexico’s Red de Carreteras de Occidente (RCO) is planning to begin marketing next week a toll road securitization targeting MXP6bn-MXP8bn ($450m-$600m), according to sources following the process. It would be the first such sale in Mexico since October of last year, the first for RCO – winner of the 2007 road concession originally known as Farac – and would represent a sizeable transaction for a Mexican local securitization market seeking greater supply. RCO is targeting MXP6-8bn, though it could issue as much as MXP10bn, through two tranches. A 15-year fixed-rate peso-denominated tranche has an 11-year average life, and 20-year UDI-denominated UDI portion has a 14-year average life. The bonds are backed by future toll road revenues, and come with a partial guarantee by government development bank Banobras. “There is appetite for long-term bonds and investors are quite comfortable with the plans of the issuer, given familiarity with them from when they issued a CCD [certificado de capital de desarollo] in 2009,” says a Mexico-based investor. The bond market offers a good alternative to refinancing for RCO, which has significant syndicated loan debt, according to sources following the deal. Market conditions are more favorable to issue a securitization of this size and tenor more so this year than last, they note, with more liquidity and appetite now. The project is not only a mature one with years in operation, but also boasts growth potential. The asset offers the fastest road connection between two of the most populous cities in Mexico – Mexico City and Guadalajara. With the roadshow beginning next week, pricing is scheduled as soon as September. Ratings are expected to be AAA on a national scale. BBVA Bancomer, HSBC, Inbursa and Santander are managing the sale, with Goldman Sachs and HSBC as structuring agents. RCO raised MXP6.5bn in the CCD markets in 2009. The domestic market was able to place toll road securitization issuance last year, but not with great size
Posted inDaily Brief
Chilean Lender Readies Issue
Chilean auto lender Forum is planning to issue up to UF1.7m ($38m) in the local bond markets. The 2.5-year deal can be denominated in UF, CLP, or a combination of the two, and is expected to price as soon as next week. Proceeds will be used to refinance debt. Forum is rated AA minus/AA minus on a national scale. BBVA and BCI are managing the transaction. In March, Forum issued UF1.5m in the local bond market, pricing a 3.5% 2014 to yield 3.7%, or government bonds plus 160bp.
Posted inDaily Brief
Costa Rica Advances Bond Plans
Costa Rica is nearer to placing its first international bond since 2004 – most likely a $500m 10-year – after congress voted in favor of issuing $4bn over a 10-year period with a maximum of $1bn per year. “We expect the upcoming issuance to be benchmark size and, thus, to become part of the EM bond indices, unlike Costa Rica’s existing eurobonds,” Nomura says in a report. Once approved, the Baa3/BB+/BB+ sovereign is expected to kick start an RFP process. A second and final vote is expected to take place next week with issuance to take place as soon as November, Nomura adds. Costa Rica is turning to the dollar market to tap low interest rates and ease pressure on local currency financing.
Posted inDaily Brief
Fitch Raises Bladex
Fitch has upgraded the credit rating of Banco Latinoamericano de Comercio Exterior (Bladex) to BBB+ from BBB, it says. Improvements to the supranational’s funding structure, and closing maturity gaps and were the main motives for the move. “Bladex has proven that it can face severe crises and has successfully refocused its strategy achieving moderate growth while ensuring a more consistent financial performance,” the agency says. The outlook is stable.
Posted inDaily Brief
Inepar Clinches Local Bond
Brazilian construction and industrial conglomerate Inepar has sold BRL150m ($75m) in domestic bonds, according to Anbima. The inflation-linked 2016s pay 8.5%, in line with the target, and amortize monthly beginning in 2013. Inepar plans to use proceeds for working capital and adjusting its debt profile. Banco BVA managed the sale, done under the rule 476 restricted format.
Posted inDaily Brief
Mendoza Opts for Local over USD Debt
Argentina’s Mendoza province has postponed plans to issue up to $350m in the international bond market, instead opting for domestic bank loans, according to a government spokesperson. “We have postponed plans given high rates in the international market, but we have not ruled out plans to visit in the future,” the spokesperson says. The sub-sovereign has received an ARP400m ($87.5m) bank loan from Banco Macro and has another APR400m in the works from three additional banks. Mendoza’s finance minister Marcelo Costa told LatinFinance in April he was hopeful Mendoza would be able to print at around 10%, despite provincial debt trading to yield at that time between 10.5% and 13%. Mendoza’s outstanding $135m 2018 bonds were trading at 12.7% Wednesday.
Posted inDaily Brief
Nafin Prices within Expectations
Mexico’s Nacional Financiera has priced a MXP2bn ($149m) bond in the domestic market. The 2022 bond priced at 5.69%, or Mbonos +50bp, in line with expectations. The sale is in line with levels seen on Bancomext’s MXP1.5bn 5.75% 2022 (Mbono +49bp) and government Banobras’s MXP2bn 6.12%2022 (Mbono +50bp), and achieved lower interest rates. The issuer saw 1.8x in demand, led by Afores with additional participation from mutual funds and bank treasuries. Banamex and HSBC managed the transaction, rated AAA on a national scale. Nafin’s previous deal was a 2010 sale including a 3-year MXP4.5bn tranche paying TIIE minus 3bp and a 5-year MXP2.5bn tranche priced at TIIE+2bp.