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.
Category: Bonds
Posted inDaily Brief
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.
Posted inDaily Brief
CPFL Adds Debentures to To-Do List
Fresh off of the filing of an IPO, CPFL Renovaveis plans to raise BRL430m ($215m) in the Brazilian domestic bond market, it says. The 2022 debentures would pay the DI+1.7% and amortize in 8 parts, beginning in year 3. The renewable unit of CPFL Energia plans to use the funds to make acquisitions and to fund its projects. It does not name the banks hired to manage the sale, and did not return a request for comment. The renewable energy developer has a massive pipeline and is in need of funds to realize it. An IPO could launch as soon as June, and raise more than BRL1bn. It plans to offer primary shares, as well as secondary shares owned by several investment funds, including those linked to Patria Investimentos and Bradesco. CPFL plans to use 80% of the funds raised to develop new projects, and the remainder for acquisitions. Bank of America Merrill Lynch and Itau are global coordinators, with Morgan Stanley, Bradesco and Banco do Brasil as bookrunners. CPFL Renovaveis has 46 small hydroelectric, biomass and wind generation projects in operation, with 850 megawatts of capacity. In addition, it has 30 projects under construction, totaling 885 megawatts, and 39 in development, totaling 3,092 megawatts. Acquisitions have also been a big theme for CPFL, which spent BRL111.5m on hydro assets in March and BRL1.062bn on wind farms the month before.
Posted inDaily Brief
Mexico Markets Samurai
Mexico has started marketing efforts for a Samurai bond this week after filing with Japan’s Finance Ministry on Monday, Juan Pablo Newman, Mexico’s general director of debt issuance, tells LatinFinance. The nation is aiming to become the first BBB rated borrower to issue a Samurai bond without a JBIC guarantee. “We are the first BBB borrower trying to issue in the Samurai market. If issued, this will be an important and groundbreaking step for a lot of BBB rated issuers looking to place public and unguaranteed bonds in Japan,” the official says. For now, the sovereign has registered a minimum amount of JPY10bn ($125m), split equally between 3 and 5-year bonds, and Newman says price thoughts of Yen Libor plus 80bp-100bp for a 3-year and 100bp-120bp for a 5-year tranche are preliminary and subject to change. Depending on investor appetite, Mexico may also adjust for a longer tenor or different size. Mexico has until now sought longer maturities but with the aid of a JBIC guarantee, most recently selling JPY150bn ($1.8bn) of 10-year bonds at a 1.51% yield, or Yen Libor plus 50bp, in October 2010. Falling into Mexico’s medium to long-term investment program, Japanese investors represent an increasingly important market and diversification alternative, after the USD and EUR bond markets. Some bankers following Mexico’s Samurai bond plans say the sovereign could pay 110bp over its 5-year dollar curve to price without JBIC support. Newman says that higher costs are generally associated with entering new markets, but funding costs are expected to decrease over time, as seen when the sovereign first entered the USD and EUR markets. “With Japan’s interest rate at 0%, a new 5-year issued at Yen Libor plus 120bp would equal to a low yield-to-maturity of 1.50%,” he explains. Citigroup, Mitsubishi UFJ Morgan Stanley, Nomura and SMBC Nikko have been mandated on the deal. Marketing in Japan takes an average of 3-4 weeks, Newman says, with pricing to follow if market conditions perm
Posted inDaily Brief
Monex Readies MXP Debut
Mexico’s Holding Monex is preparing to raise up to MXP1bn ($73m) in what would be its domestic Mexican bond market debut. The financial services company’s 2015 notes will be issued under a MXP2bn program, and pay a spread to the TIIE benchmark. Pricing is tentatively scheduled for the first half of June. Proceeds will be used for general corporate purposes. BBVA Bancomer is managing the transaction.
Posted inDaily Brief
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.
Posted inDaily Brief
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.
Posted inDaily Brief
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.
Posted inDaily Brief
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.
Posted inDaily Brief
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.