Bancamia has registered a domestic bond issue of up to COP400bn ($220m), it says. The Colombian microlender can choose from 5 series, which are expected to have maturities between 1 and 5 years, and pay interest at fixed rates or rates set to the country’s various benchmarks. Bancoldex is partially guaranteeing the bonds. The issue will be led by Corficolombiana.
Category: Bonds
Posted inDaily Brief
Mabe Reaches 65% in Tender
Controladora Mabe has received acceptance from holders of $130m, or 65.22%, of its 2015 bonds in a tender offer, as of May 29, it says. The Mexican white goods manufacturer has also extended the offer’s early payment deadline from May 29 to match the June 11 final deadline. Mabe is offering to exchange the 6.5% 2015 bonds for new reopened 7.875% 2019s. It is offering $1,000 in the new bonds for each $1,000 tendered of the 2015s. Bank of America Merrill Lynch is managing the process. The 2015 bonds were sold in 2005 for $200m. The 2019s to be reopened in the operation were originally sold in 2009, for $350m, through BAML and HSBC.
Posted inDaily Brief
State Entity Preps Debentures
Minas Gerais Participacoes (MGI), a holding company controlled by the state government of Minas Gerais, is preparing to sell BRL400m ($201) in domestic bonds, it says. The 2017 bonds would pay the DI plus up to 3.5%, and can be upsized by 15%. The proceeds will be used to repay the state government under a credit receivables contract. Citi, Santander and ABC Brasil are managing the sale, which has not yet been rated. The regulatory documents do not indicate the timing. MGI is 99% owned by the state, with minority holders including Cemig and the state development bank. The bank is focused on helping companies in the development phase, and its holdings include 16% of the Helibras helicopter manufacturer.
Posted inDaily Brief
Toyota Prices MXP Bond
Toyota Financial Services Mexico has sold MXP1bn ($71m) in domestic bonds, in a third issuance under a MXP10bn program. The 3-year notes priced at TIIE+33bp. The level sets a new benchmark for peers that have normally paid in the TIIE+50bp range, a banker on the deal says. The deal was heard 3.8x oversubscribed, with mutual funds, retail investors, and Afores heard participating. Proceeds will help refinance MXP1bn due in November 2012. BBVA Bancomer and Banamex managed the transaction, rated AAA on a national scale. In June 2009, Toyota Financial Services sold MXP1bn in 18-month notes at TIIE+180bp.
Posted inDaily Brief
Energisa Defines Bond
Brazil’s Energisa plans to raise BRL400m ($200m) in the domestic bond market, it says. The deal is to consist of 2 tranches, with the amounts of each to be set during the bookbuilding process. A 2017 portion pays the DI plus up to 1.3% and amortizes in two equal parts in the final two years. A 2019 tranche pays the DI plus up to 1.55% and amortizes in two equal parts in the final two years. BTG Pactual is managing the sale, rated Aa3 on national scale.
Posted inDaily Brief
Guatemala Braves Market Conditions
Guatemala defied the recent global market volatility to price a new $700m bond, upsizing the deal from $500m and clinching a yield below 6%. Demand for the 2022 topped $2bn, according to investors following the sale. “Markets are fragile, but this is a good window to issue,” says an EM portfolio manager who found Guatemala’s bond fair value for a new benchmark 10-year. The Ba1/BB/BB+ Central American sovereign priced at 99.065 with a 5.75% coupon, to yield 5.875%, at the tight end of 5.875%-6.00% guidance and tight to earlier 6% whispers. “At 6% the deal seemed fair and not cheap, but when they tightened below 6% it gave us a sense that it was priced too aggressively,” says an EM investor who opted out of the trade. Calculating the concession against Guatemala’s existing illiquid curve was difficult for some investors while others looked at Guatemala’s existing 2034s and Costa Rica’s 2020 bonds as general reference points. Investors and bankers saw Guatemala’s 2034 bonds trading to yield 6.20%-6.30% prior to announcement. The new bond was heard trading up 0.5 points at the end of the day. “The reason they managed to launch this bond at these levels is because of limited supply in the bond market, debt metrics for Guatemala are better than other Central American sovereigns, and lack of availability for benchmark-sized Central American paper, despite issuing at tighter levels under current market conditions,” adds another EM investor. Better visibility, an $630m debt service coming due in 2013 and diversification of funding away from traditional multilateral sources are a few reasons for issuing in the international bond market, according to analysts. More than 140 accounts were heard participating, with 65% from the US, 15% from the UK, 15% from Europe ex-UK, and 5% from Central and South America. About 70% of the buyers were said to be fund managers, with the remainder divided roughly equally between hedge funds, pension funds, insurance companies, and offshore reta
Posted inDaily Brief
Pemex Travels to Europe
Pemex is visiting Europe on a non-deal roadshow this week, almost a month after a debut in Australian dollars. The Mexican state-owned oil producer began Monday in London, and visited Vienna and Amsterdam Tuesday before a scheduled finish in Paris and Frankfurt today. HSBC is managing the meetings. In April, Pemex became the first Latin American credit to issue in Australian dollars, raising a AUD150m ($156m) 5-year bond. Its last issue in Euros was in 2009, though it issued CHF300m ($326m) in Switzerland in March.
Posted inDaily Brief
Banco Pine Plans CHF Bonds
Brazils’ Banco Pine plans to sell CHF100m ($104m) in bonds in the Swiss market, according to Fitch, who assigns a BB rating. The 2.5-year bond would be the issuer’s first in Switzerland, according to Dealogic data. A bank spokesperson declines to comment on the sale. LatAm issuance in Europe has slowed thanks to the increasing worry about the Eurozone’s future. The last CHF issuer from LatAm was Santander Brasil, with a CHF150m sale in March.
Posted inDaily Brief
Colombia Holds Rates
Colombia’s Central Bank has elected to keep the benchmark interest rate at 5.25%, in line with the market’s expectations. It notes domestic inflation levels slightly less than expected, as wells as an increasing probability of a European recession among the factors in its decision.
Posted inDaily Brief
Colombian Gas Distributor Plans Local Bond
Colombia’s Gases de Occidente is preparing a COP200bn ($109m) domestic bond sale, according to a Fitch report assigning a AAA national scale rating. The gas distributor plans a tenor of 10-15 years, and will use proceeds to replace existing liabilities and pay for investments. Corficolombiana is heard managing the sale, the timing of which is unclear.