Mexican lender Banorte is looking to sell MXP3.2bn ($232m) in 10-year NC5 Tier 2 subordinated bonds in the local market, according to a person familiar with the deal. The issuance is expected to take place in June, with proceeds to be used to fund working capital. The bonds would be the fifth issuance under a MXP15bn program, and will pay a spread to the TIIE benchmark. Ixe is leading the deal, rated AAA on a national scale.
Category: Bonds
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Canadian Prices Panama Project Bond
Inmet Mining has priced a $1.5bn 2022 NC4 bond, upsizing from $1.0bn and widening the price against a tricky market backdrop. Seeking funds for the Cobre Panama copper project, the B1/BB minus Canadian miner priced at 98.584 with an 8.75% coupon to yield 9.00%, at the wide end of 8.75%-9.00% guidance revised from an earlier 8.25%-8.50% level. The proceeds help develop the $6.18bn Cobre Panama copper project in Panama, of which Inmet has an 80% share. Citi, Credit Suisse, BAML, JPMorgan, Morgan Stanley and RBC managed the transaction, with CIBC and Scotia as co-managers.
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Chile Metro Defines Bond Terms
Empresa de Transporte de Pasajeros Metro, meeting with Chilean bond investors this week, has further defined the terms of its upcoming domestic market issue. The Santiago subway operator will look to sell up to UF1.5m ($68m) in 21-year bonds with a coupon of 3.85%, as soon as next week. The funds are to be used to refinance debt. Santander is managing the sale, rated AA/AA+ on a national scale. Metro last issued in October 2011, placing UF5.2m in 21-year bonds at a 3.75% coupon to yield 4.00%, or 129bp over benchmark, also through Santander.
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BBVA Price Talk Heard
Mexico’s BBVA Bancomer is heard looking to pay TIIE+18bp-20bp on a new 2014 domestic bond this week. The MXP2bn floating-rate sale is scheduled for Wednesday. Proceeds will be used to fund bank operations. The self-led transaction is rated AAA on a national scale. BBVA last visited the domestic bond market in June 2011, when it sold MXP3bn in 2014 notes.
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Inbursa Talks MXP Price
Banco Inbursa’s planned MXP5bn ($365m) in 2015 domestic bonds are expected to price in line to levels seen on previous 2-year domestic issuances, says a banker on the deal. The bond was originally scheduled for May 15 pricing, and has been pushed to a later date this month for regulatory reasons. The Mexican bank last issued in February 2012, pricing a MXP3.5bn 2-year at TIIE+20bp. Actinver, BAML, Banamex and Inbursa are managing this transaction, rated AAA on a national scale.
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Inmet Upsizes Panama Copper Bond
Inmet Mining is set to price an 2022 NC4 bond as soon as today, after giving 8.25%-8.50% area guidance, and upsizing to $1.5bn from $1.0bn. The B1/BB minus Canada-based miner was scheduled to wrap up meetings in California Monday as it seeks to fund the development of the $6.18bn Cobre Panama copper project in Panama. Citi, Credit Suisse, BAML, JPMorgan, Morgan Stanley and RBC are managing the transaction, with CIBC and Scotia as co-managers. Inmet has an 80% share in Cobre Panama through its Minera Panama subsidiary. The other 20% is held by Korea Panama Mining Corporation.
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Mabe Launches Liability Management
Controladora Mabe has launched an offer to exchange its existing 6.5% 2015 bonds for new reopened 7.875% 2019s, it says. The Mexican white goods manufacturer is offering $1,000 in the new bonds for each $1,000 tendered of the 2015s prior to a May 29 early deadline and $950 per $1,000 after. The offer expires June 11. 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.
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Nissan Dealers Near Mexican ABS
Sistema de Credito Automotriz (Sicrea) is preparing to issue up to MXP1.25bn ($92m) through a domestic securitization, scheduled for May 23. The 2017 bond is backed by credit receivables and pays a spread to the TIIE benchmark. Sicrea is an association of Nissan dealers which provides credit for auto loans. ING is managing the transaction, rated AAA on a domestic scale. Sicrea last issued in 2007, when it priced MXP800m in 4-year bonds at TIIE+54bp.
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Santiago Metro Preps Local Bonds
Empresa de Transporte de Pasajeros Metro, Santiago’s subway operator, has started private meetings with investors as it looks to issue bonds in the domestic market. It is considering an issue as soon as next week, and is able to issue UF1.5m ($70m) at up to 30 years, with details to be defined later in the week as the structure receives approvals. The funds are to be used to refinance debt. Santander is managing the sale, rated AA/AA+ on a national scale. Metro last issued in October 2011, placing UF5.2m in 21-year bonds at a 3.75% coupon to yield 4.00%, or 129bp over benchmark, also through Santander.
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Bankers Counting on DCM Pickup
LatAm DCM volume has slowed somewhat following a record first quarter, but bankers are hopeful that issuance will pick up as expected mandates are awarded and issuers emerge from recent quiet periods. Following transactions last week from Ajecorp ($300m) and Banca Mifel ($150m), few deals appear to be in the pipeline, but more mandates and requests for proposals are expected to emerge over the next month, bankers say. “It feels a little slow, but I do think in the next 3-4 weeks we will see 3-4 RFPs,” says a New York DCM banker with a few deals already in the pipeline. Through last week, LatAm borrowers had issued $48.2bn in cross-border bonds from 77 deals this year, according to Dealogic, up from $41.1bn from 76 deals in the corresponding period in 2011. While supply has been quiet in the LatAm space compared with Asia and Europe, investor appetite remains alive across all regions. “Books have been oversubscribed in other regions and deals have performed OK in the secondary, but the reason why Latin America has been quiet is because there is less refinancing need than in other regions in general and [recent] LatAm deals have been opportunistic,” says a London-based EM portfolio manager. Despite low LatAm supply as of late, investors have remained selective on deals in the bond market, especially with LatAm high-yield debutants. “We have seen a few deals cancelled, and risk rewards are [closely monitored] especially in the high-yield space,” the investor adds. Inmet Mining is meeting with investors in the US and Europe ahead of a $1bn bond sale to fund the development of the Cobre Panama copper project. The B1/BB minus Canadian-based global miner expects to price the 2020 NC4 Tuesday. Citi, Credit Suisse, BAML, Morgan Stanley and RBC are managing the transaction. Guatemala’s G&T Continental is heard to have selected banks for a dollar bond transaction and UMS is heard sounding out accounts in Japan for a JPY bond without a JBIC guarantee. Though still on a record p