Colombian state-owned development finance agency Findeter has sold COP500bn ($282m) in Certificados de Deposito a Termino (CDT) domestic market debt securities. A COP127.6bn 2013 tranche pays DTF+1.46%, a COP148bn 2014 tranche pays DTF+1.58%, a COP60.7bn 2015 tranche pays DTF+1.64%, and a COP163.7bn 2017 inflation-linked tranche pays 3.85%. The issuance saw demand of nearly COP682bn, and will help fund operations. Findeter, rated AAA on a national scale, managed the sale itself.
Category: Bonds
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Pemex Finishes Exim Issuance
Pemex has issued another $400m in bonds backed by the US Export-Import bank, the third and final issuance under a $1.2bn program guaranteed by the American ECA. The 2022 bonds with a 5.71-year average life priced at par with a 1.70% coupon, yielding inside of 1.75%-area guidance. Proceeds from the issue will help fund payments of goods and services purchased by Pemex and its subsidiary entities from US suppliers. Credit Agricole, Goldman Sachs and JPMorgan managed the sale, aimed at US high-grade accounts. The previous two transactions in the series were executed in the final week of June. In addition to providing a cheap and diversified source of funding, the deals under the program represents the first time an issuer has issued a US Ex-Im backed structured bond for purposes outside of aviation funding, according to bankers following the trades.
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Peru Sugar Exporter to Meet Investors
Corporacion Azucarera del Peru (Coazucar) is scheduled to start meeting investors Thursday ahead of a possible cross-border bond debut. The sugar and ethanol unit of Grupo Gloria is to begin in London and Santiago, and visit Switzerland, Lima, Miami, Boston and Bogota, before finishing in Los Angeles July 25. A BB/BB+2022 bond is expected to follow. Bank of America Merrill Lynch and Citi are managing the process. A deal would offer a test for high-yield corporate appetite in the region. Mexico’s ICA (B1/BB minus) is expected to complete a roadshow today, though it is unclear if the builder plans a transaction. A sale from either would be the first non-financial corporate high-yield sale since Inmet Mining in early May. Coazucar operates 5 mills and 8 distilleries located in Peru, Ecuador and Argentina, crushing 8.4m tons of sugarcane per year.
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Builder Completes BRL Bond (1)
Sa Cavalcante has finalized the sale of BRL350m ($172m) in Brazil’s domestic bond market, according to Anbima. The 2019 debenture from the builder and operator of shopping malls pays DI+1.18% and amortizes annually beginning in 2016. Bradesco managed the sale, done under the rule 476 restricted format.
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CNO Seeks Debt Amendments (1)
Brazil’s Odebrecht is seeking bondholder approval to adjust terms on its $500m outstanding in 7.0% 2020 bonds issued through the Odebrecht Finance unit, it says. It is offering holders $2.50 per $1,000 principal through July 23. The proposed amendments include eliminating covenants governing debt limits, dividend payments and transactions with affiliates, as well as loosening restrictions on liens and cross-acceleration in the event of default. Deutsche Bank and Goldman Sachs are managing the offer.
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Cruzeiro Mum on Losses (1)
Banco Cruzeiro do Sul says it is still evaluating its financial situation and that it “is not possible to identify any losses or revisions at the institution or its subsidiaries.” The statement follows reports that losses at the mid-size bank are larger than expected. The Brazilian bank is under review by the government’s Fundo Garantidor de Credito, which will evaluate Cruzeiro’s possible accounting irregularities and how they will impact its capital, after which the bank is expected to be prepared for sale.
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Details Emerge on New TGN Debt (1)
Argentina’s Transportadora de Gas del Norte (TGN) has disclosed the details of the new debt included in an exchange offer launched last week. The gas company plans to issue as much as $170m in new 2019 bullet step-up notes, paying 3.5% through the first 2 years, 7.0% through the second 2 years and 9.0% during the remainder, according to a company official. Up to $174m in claim protection notes pay no coupon and are due after one year, unless there is a credit event. TGN said last week it would exchange any and all of its $141m outstanding in 9.52% 2012 bonds and $204m outstanding in 9.45% 2012 bonds, for the new notes and cash. In the offer, accepting holders receive, for each $1,000 principal, $494.20 in new step-up notes, $164.68 in new claim protection notes, and $280 in cash. Holders accepting before an August 8 early date receive an additional $49.45 in cash per $1,000. The offer expires August 17, and is contingent upon a minimum 88% acceptance. Barclays is managing. TGN defaulted on its debt in 2008.
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EM Debt Beating Expectations: JPMorgan (1)
EM fixed income returns are so far outperforming JPMorgan’s base case scenario for 2012, the bank says. Its EMBIG index has been the top-performing asset class year-to-date across both developed and EM fixed income and equities, with a 9.6% return. It expects 9%-12% returns across EM assets for this year. The EMBIG and the CEMBI corporate bond index have “surprised on the upside,” by tightening 61bp and 50bp, respectively, since the beginning of the year. LatAm EMBIG members have tightened 48bp, compared to 100bp for Emerging Europe and 25bp for Asia. In the CEMBI, LatAm only managed to tighten 4bp ytd, with Asia and EMEA tightening by 62bp and 110bp, respectively. The bank remains marketweight on the EMBIG, with a 350bp spread target for year-end, and moves the CEMBI back to marketweight from underweight, targeting a year-end 400bp-450bp spread level. As for specific LatAm credits, JPMorgan recommends remaining overweight Belize into its restructuring process and overweight Venezuela given the possibility of regime change. It moves Peru to overweight and Colombia to underweight. It notes it is underweight Brazilian consumer-related credits, including Hypermarcas, Brasil Foods, Marfrig, JBS, Arcos Dorados and Gol, expecting softer demand and higher cost pressures.
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Findeter Set for Local Issue (1)
Colombian state-owned development finance agency Findeter is expected to sell today between COP250bn-COP500bn ($140m-$280m) in Certificados de Deposito a Termino (CDT) domestic market debt securities. It plans tranches of 1.5, 2 and 3 years linked to the DTF benchmark, and a 5-year inflation-linked portion. Findeter is leading the issue itself, and will use the money for project finance lending. The lender is rated AAA on a national scale. The deal follows a COP400bn February sale. In that transaction, it secured rates of DTF+1.64% for a COP104.6bn 1.5-year tranche, DTF+1.74% for a COP65.9bn 2-year tranche, and 3.78% for a COP229.5bn 5-year inflation linked tranche.
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Light Readies Debentures (1)
Brazil’s Light is preparing to sell BRL500m ($245m) in bonds in the domestic market, it says. The utility plans to pay the DI+1.8% on the 2026 debenture. BRL470m of the issue is to be done through the Light Servicos de Eletricidade unit, and BRL30m through Light SA. Proceeds would fund Light’s project pipeline. Caixa Economic Federal is managing the sale, according to a company official.