While other regional markets have slowed to a stop, Mexico’s domestic bond market remains active, with Banorte raising MXP3.2bn ($232m) in subordinated bonds and Infonavit scooping up MXP1.97bn Wednesday. “Investors are looking for new names to diversify funding, but those names have to be solid names with a good rating of minimum AAA or AA,” says a Mexican DCM banker. Such was the case for Mexican mortgage and social services entity Infonavit, which raised MXP1.97bn, through the Infonavit Total unit, in UDI-denominated RMBS 2040 bonds. The 4.20% pricing comes inside of the 4.60% it saw on a previous issuance. Demand hit 2.5x, and at least 75% of the sale was allocated to pension funds, according to a banker on the deal, with the remainder coming from private banking, bank treasuries and insurance companies. Banorte issued MXP3.2bn in a 10-year NC5, at TIIE+150bp, inside price thoughts of TIIE+175bp. Ixe led the AAA-rated deal. Demand was heard driven by institutional investors and retail accounts. “Outside of Mexico there is volatility, but there is a lot of liquidity and stability in Mexico,” says another DCM banker, noting that spreads have remained stable this year. With pension funds showing appetite, more names are waiting in the pipeline. Holding Monex is scheduled to raise up to MXP1bn today in what would be its domestic market debut. The financial services company’s 2015 notes will be issued under a MXP2bn program, and pay a spread to the TIIE. BBVA Bancomer is managing the transaction, rated A on a national scale. Next week, issuers will try to break the FIG dominance of the market. Holcim Mexico was scheduled to issue up to MXP3bn June 13, at 5 and 10-year maturities. Banamex, BBVA, and Santander are managing. Also on that day, Penoles is to issue $200m-$240m in 10-year dollar-denominated bonds, through Banamex, BBVA Bancomer and Santander. Mexicans have issued $3.09bn-equivalent this year through Wednesday, according to Dealogic data, down from $6.58bn-e
Category: Bonds
Santander Leasing Preps Debenture
Santander Brasil’s leasing arm is planning to sell BRL5bn ($2.46bn) in domestic bonds, it says. The 2032 notes are expected to pay 100% of the DI. Proceeds would fund operations. The bank does not elaborate on the timing. Santander’s capital markets unit is managing the sale.
Banorte Talks Price
Mexican lender Banorte is looking to pay TIIE+175bp-area for up to MXP3.2bn ($232m) in 10-year NC5 Tier-2 subordinated bonds, scheduled to price today in the local market, according to a person familiar with the deal. This will be the fifth issuance under a MXP15bn program. Proceeds will be used to fund working capital. Ixe is leading the deal, rated AAA on a national scale. Banorte last visited the bond market in 2009, when it priced a MXP2.2bn 2019 bond at TIIE+200bp, according to Dealogic data. The bank visited the dollar market in July 2010, when it sold a $300m 2015.
BNDES Lowers Interest on Credit Lines
Brazil’s BNDES plans to reduce interest rates on credit lines for companies to finance their working capital, according to local news and wire reports citing public remarks from bank president Luciano Coutinho. The measures aim to avoid a slowdown of the growth of Brazil’s economy, and follow reductions from several retail banks, as well as large cuts in the benchmark by the country’s central bank. Credit lines used by companies to finance working capital are seen coming at less than 7% per year, down from 9.5% currently.
Online Retailer Plans Debentures
Brazil’s B2W is planning to sell BRL300m ($148m) in domestic bonds, it says. The 2017 would pay 120% of the DI. The online retailer resulting from the merger of Submarino and Lojas Americanas’ online business is raising funds for working capital. An official at the company does not respond to a request for comment on the managers of the sale, to be done under the rule 476 restricted format.
OSX Advances Bond Process
Brazil’s OSX was collecting RFPs through last week for its next project bond transaction, according to market participants. Company officials told LatinFinance last month that the Brazilian oil company was evaluating funding options for its next floating production, storage and offload (FPSO) project, including another project bond. The Eike Batista-controlled oil services company would look to raise about $600m in the US or Norwegian market, in a deal similar to its March transaction, known as OSX-3. Though the first 2 OSX FPSO platforms were financed in the loan market, OSX finds the high-yield bond market deeper and more preferable. The shipbuilder raised $500m in 9.25% 2015 bonds in March to fund OSX-3. Pareto Securities and DNB Markets led.
Interacciones Targets Bond
Mexico’s Banco Interacciones is looking to issue up to MXP1.5bn ($105m) in 3-year bonds, according to a regulatory filing. The notes will pay a spread to the TIIE benchmark. The floating-rate notes are rated A on a national scale, and will represent the third issuance under a senior debt program of up to MXP10bn. Proceeds will be used to maintain liquidity and general corporate purposes. Interacciones is managing the sale itself. Interacciones specializes in sub-national and public infrastructure financing in Mexico.
ISA Ups Bond Program
Colombia’s ISA is planning to increase its global bond program to COP2.7trn ($1.54bn) from COP1.7trn, it says. It does not indicate any specific plans to issue. ISA is rated BBB minus, and AAA on a domestic scale. In December it sold COP300bn in local inflation-linked bonds, getting a 4.47% yield on a 12-year, and 4.84% on a 30-year. Fitch has upgraded the outlook on ISA’s BBB minus rating to positive from stable.
Monex Nears MXP Debut
Mexico’s Holding Monex is preparing to raise up to MXP1bn ($70m) in what would be its domestic Mexican bond market debut June 7. The financial services company’s 2015 notes will be issued under a MXP2bn program, and pay a spread to the TIIE benchmark. Proceeds will be used for general corporate purposes. BBVA Bancomer is managing the transaction, rated A on a national scale.
Carozzi Joins Chilean Bonds Likely on Hold
Chile’s Empresas Carozzi expects to delay its domestic market bond issue, according to sources following the sale, joining a line of issuers waiting for better conditions. The food and agricultural products producer had been targeting up to UF3m ($131m) later this month. It has decided to wait for better market conditions, says the source, adding that there have been few issuances in the last several weeks, with corporate players overall – save for the largest, and most highly-rated – putting their plans on hold. Banchile-Citi is managing the sale.