Sodimac Colombia has registered to sell up to COP300bn ($168m) in domestic bonds, and is awaiting regulatory approval. It would be the company’s first plain-vanilla bond issuance, says a person familiar with the home improvement company’s plans, who is unable to provide additional details.
Category: Bonds
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DCM Banker Joins Pine Buildout
Ex-Jefferies banker David Gould has joined Banco Pine, where he will head an expanded DCM operation from New York, according to a source familiar with the matter. The Brazilian mid-size shop is said to be assembling a US-based DCM, sales and trading operation. The exact timing of the plans is unclear, but the bank plans to make additional hires in these areas. Gould was at Jefferies for more than 2 years before leaving earlier this year. He had previously been on the buyside, at Cargill, Elliot and Damigo.
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Brazilians Lead Fee Race
BTG Pactual leads the LatAm fee race across products, according to Dealogic. The Brazilian bank booked $97m, or 10.8% of the pool, through Friday, when revenue from DCM, ECM, M&A and Loans is considered. Citi follows in second with $93m (10.4%), and JPMorgan third with $74m (8.2%). The total fee pool reached $898m through Friday, behind the $1.2bn seen at the same point in 2011.
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CCR Unit Preps Debentures
SPVias, a unit of Companhia de Concessoes Rodoviarias (CCR) operating toll roads in Sao Paulo State, is planning to raise BRL400m ($197m) in domestic bonds, it says. The 2016 debenture should pay 109.3% of the DI. SPVias is looking to refinance existing credit with Bradesco, Itau and Santander. It does not indicate the managers of the sale, and the company declines to provide additional information.
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Credito Real Approaches MXP Bond
Mexico’s Credito Real is targeting a July 18 pricing for a new 3-year domestic floating rate bond of up to MXP1bn ($74m). The deal had originally been expected in March. Proceeds will be used to refinance short-term debt. BBVA is managing the sale, rated A/A on a national scale.
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Modelo Deal Pushes Americans to M&A Lead
The $20.1 billion sale of 50% of Grupo Modelo agreed June 29 shook up the regional M&A league tables, placing JPMorgan and Bank of America Merrill Lynch at the top, according to Dealogic. Though BAML led at the midyear point, the numbers through Friday had JPMorgan at the top with $39.5bn volume through 23 deals, just ahead of BAML’s $38.0bn from 13. Lazard, also on the Modelo deal, stood third with $31.6bn from 13. Prior to the Modelo transaction, the largest deal in EM in 1H 2012 and sixth-largest ever in EM, Itau’s $22.1bn volume led the region. Modelo also pushed regional 1H volume to $133.5bn through Friday, ahead of the $74.5bn done in the corresponding period last year. Despite the AB InBev’s purchase of the remainder of the Mexican brewer representing more foreign entry to LatAm, European divestures should continue to drive the M&A market in the rest of the year, bankers say. “We have barely hit the surface of the available divestitures in the region,” notes a New York-based banker, noting that those foreigners who can will still opt to spend more in the region. M&A Fees in LatAm paint a different picture than the volume totals, with BTG Pactual leading the league tables with $62m through Friday, or 47% of the pool. Credit Suisse is second with $34m (30%), and Itau third with $26m (37%). EM-targeted M&A volume reached $377.2bn in 1H 2012, down 4% from 1H 2011, Dealogic says. However, EM?s share of global M&A rose to 30%, the highest share since 2H 2010.
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Compartamos Preps Domestic Issue
Mexico’s Banco Compartamos is preparing to issue up to MXP1.5bn ($112m) in the domestic bond market, according to a regulatory filing. The microlender will issue 5-year bonds in its fourth issuance under a MXP6bn program. Bancomer, Banamex and HSBC are managing the sale. The bank is rated AAA/AA on a national scale. Compartamos last visited the local bond market in August 2011, when it sold MXP2bn in 2016 domestic bonds at TIIE+85bp.
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ECM Volume Down; Brazilians Lead
Overall ECM volume is again disappointing this year, with issuers raising $9.7bn through 37 deals in the first half, down 55% from the corresponding period in 2011 ($21.4 through 48 deals), according to Dealogic. It is the region’s lowest half-year volume since 1H 2009. The BRL1.5bn ($712m) Suzano follow-on last week vaulted BTG Pactual into the lead in the ECM league tables, with $1.15bn in volume from 10 deals, with the bank’s own IPO also having boosted its total back in April. The Brazilian bank is followed by Citi ($1.08bn from 6 transactions) and JPMorgan ($919m from 5). Issuers got off to a late start in 2012, with relatively little volume coming before March. “Nobody was ready in the first quarter. It was a bit frustrating. If the signs of a recovery had come a little earlier in 2011 we would have had more companies ready to tap the market in January and February,” Fabio Nazari, head of ECM at BTG, tells LatinFinance. Follow-on trades, dominant in the first half compared to IPOs, should continue to be responsible for most of the activity in a second half that is difficult to predict. “Given the fact that the market has been quite challenging, advisors are likely to be more honest with issuers about the feasibility of each deal. This brings confidence to those deals that do hit the road. Each one needs to be bulletproof,” he says. In terms of fees, BTG led with $26m in revenue, or 12.7% of the pool, followed by JPMorgan ($24m, 11.5%) and Citi ($16m, 7.7%).
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ISA Unit Clinches Brazilian Bonds
Brazil’s Companhia de Transmissao de Energia Eletrica Paulista (CTEEP) has completed the sale of BRL700m ($345m) in domestic bonds, according to Anbima. The electric transmission operator’s 2014 debenture pays 105.5% of the DI. Bradesco managed the sale, done under the rule 476 restricted format. CTEEP is a unit of Colombia’s ISA.
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QG Developer Raises Local Debt
Queiroz Galvao Desenvolvimento Imobiliario has completed the sale of BRL170m ($84m) in domestic bonds, according to Anbima. The residential developer’s 2017s pay 120.5% of the DI, and amortize in 4 equal parts starting in year 4. Bradesco managed the sale, done under the rule 476 restricted format.