Colombia’s Banco Finandina has issued COP100.5bn ($56.8m) in domestic bonds, it says. The lender issued a COP64.7bn 2015 series paying DTF+1.85%, a COP12.3bn 2016 series paying DTF+1.99%, and a COP23.5bn 2015 series paying IBR+1.84%. The transaction is the second under a COP200bn bond program, which saw COP72bn sold in August. Corredores Asociados, Correval, Interbolsa, Bancolombia and Casa de Bolsa led the deal.
Category: Bonds
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Logistics Operator Plans BRL Bond
MRS Logistica is preparing to issue up to BRL300m in Brazil’s domestic bond market, according to S&P, which rates the sale AA+ on a national scale. The rail operator’s debentures would mature in 2018. The company does not respond to a request for comment on the sale.
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Toyota Preps MXP Bond
Toyota Financial Services Mexico is preparing to issue up to MXP1bn ($74m) in the domestic bond market on May 30, according to a regulatory document. The bonds would be the third issuance under a MXP10bn program, and pay a spread to the TIIE benchmark. Proceeds would be used to fund lending and operational needs. BBVA Bancomer and Banamex are managing the transaction, rated AAA on a national scale. In June 2009, Toyota Financial Services sold MXP1bn in 18-month notes at TIIE+180bp.
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Andrade Gutierrez Readies Local Bonds
The board of Brazilian builder and concession operator Andrade Gutierrez has approved a BRL600m-BRL800m ($306m-$408m) domestic bond sale, it says. The plan allows for up to 3 tranches, with the exact amounts to be determined during the bookbuilding process. A 2017 portion paying the DI plus up to 1.15% amortizes in equal parts in years 4 and 5, a 2019 pays the DI plus up to 1.40% and amortizes in equal parts in years 6 and 7, and an inflation-linked 2022 pays up to 6.80% and amortizes in equal parts in years 8, 9 and 10. The proceeds would be used to buy shares of the Andrade Gutierrez Concessoes unit and for other purposes. The issuer does not comment as to who is managing the sale, done under the Rule 476 restricted format. S&P has assigned a AA+ rating.
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Banca Mifel Targets 10%
Banca Mifel is set to price a $150m-$200m Tier 2 subordinated 10-year bond as soon as today, after giving 10%-area guidance. The Mexican commercial bank is scheduled to wrap up a 3-continent roadshow today in Los Angeles. Mifel is raising funds to repurchase its outstanding $100m 11% perpetual bonds, callable in July. The remainder of proceeds will be used for general corporate purposes. The proposed notes will likely receive a 50% equity credit during the first 5 years outstanding, says Fitch which assigns a B rating to the new bonds, below the default BB minus mark. Credit Suisse is sole lead. The perpetual bonds represented Mifel’s last international sale, raising $150m in 2007. Deutsche Bank led that transaction with Credit Suisse as co-manager.
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Colombians Hope DCM Pace Continues
Colombian domestic bond issuance is off to a better start this year than last, though few expect a return to the higher volumes seen in 2009. A COP500bn ($282m) sale from Cementos Argos scheduled for next week would be a boost to a market that has seen mostly financial institution issuance. Colombian domestic issuers have raised $1.73bn-equivalent so far this year, through 9 transactions, according to Dealogic and LatinFinance data. There was no issuance in the corresponding period in 2011, with markets not opening until May, to raise $3.24bn-equivalent for the full year. This was up from $2.31bn-equivalent for all of 2010. Francisco Chaves, fixed income strategist at Colombia’s Corredores Asociados, tells LatinFinanace that sentiments have changed since last year, along with the costs of issuing. Policymakers’ reduction of the interest rates from 10% to 3% plus low inflation levels had made issuing conditions attractive, though this changed when rates went up last year. “It was because of the less interest from the investors to buy bonds at high interest rates,” Chaves says. Additionally, corporates forced into the domestic markets during the credit crisis are not yet in need to issue again. “Probably in 4 to 5 years we’re going to see again these same corporates trying to roll over their debt. There’s not too many more corporates in the pipeline needing the same kind of money,” he says. Promigas and ISA are examples of companies that could tap the market as their bonds mature. Argos could open the market up for more corporate issuance, but not to the same levels as 2009, he says. A local DCM banker notes that the largest companies have already fulfilled their financing needs. “We don’t expect those types of companies to issue this year,” the banker says, noting that it’s likely that the main issuers will still be banks and financial institutions. Argos, rated AA+ on a national scale, plans to sell bonds at maturities of 8-15 years May 16. Continuing the financial
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Cosan OKs Acquisition Debt
Cosan will issue BRL3.3bn ($1.68bn) in debentures to cover costs of the acquisition of a majority stake in Comgas, it says. The debentures are to be bought by Bradesco and Itau, functioning basically as a loan, and pay 123% of the DI. Separately, Citi is to provide Cosan with a 5-year GBP54m ($87m) loan featuring a 2-year grace period. Cosan agreed last week to pay BRL3.4bn ($1.79bn) for the 60.1% of Brazilian gas distributor Comgas owned by BG Group. Fitch has placed Cosan on rating watch negative, noting that the debt could increase Cosan’s net leverage, on a pro forma basis, to around 3.7x, from 2.1x.
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Agricultural Fund Prices MXP Bond
Fondo Especial para Financiamentos Agropecuarios (FEFA) has sold a MXP3bn ($224m) domestic bond, representing its Mexican market debut. The largest trust under second-tier development bank Fideicomisos Instituidos en Relacion con la Agricultura (FIRA) priced the 3-year notes at TIIE+25bp, in line with TIIE+25bp-30bp guidance. FEFA saw 2.8x demand, coming from a diverse mix of investors, according to a source familiar with the sale. Proceeds are to fund operations. Established in 1954 by Mexico’s federal government, FIRA offers credit and guarantees among other services to livestock, fishing, forestry and agribusiness sectors in Mexico. Banamex, BBVA Bancomer and HSBC managed the AAA rated transaction.
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Elektra Unit Nears Money Transfer Securitization
Intra Mexicana plans to raise up to MXP3bn ($224m) though a domestic securitization, scheduled for May 10. The 2019 floating-rate bonds are backed by receivables of money transfer fees done under the Dinero Express brand. The proceeds will be used to fund the acquisition of payday lender Advance America by Grupo Elektra and for general corporate purposes. Actinver, Ixe and Value are managing the transaction, rated AA minus on a national scale. Intra Mexicana, an electronic money transfer company operating under the brand name Dinero Express, started operations in 1996 and began to expand in Latin America in 2003.
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Peruvian Bond Debutant Bottles Massive Demand
Peru’s Ajecorp generated close to $2.6bn in orders for its $300m international bond debut, ratcheting down its yield well below expectations. The 2022 NC5 priced at par with a 6.50% coupon, to yield at the tight end of 6.50%-area guidance, which had been revised from 6.75%, and followed 7.00% whispers. “Great deal and great momentum,” says an EM investor following the trade. “Ajecorp took advantage of supply in the market and priced well given demand,” says a DCM banker away from the deal. The bonds were trading up a point in the grey late Tuesday, according to investors. The BB/BB+ producer and distributor of soft drinks including the Big Cola brand was directly comped against compatriot BB+/BBB minus Coca-Cola bottler Corporacion Lindley, whose 6.75% of 2021s traded to yield 5.60%-5.90% Tuesday. Ajecorp offered investors a 50bp pickup versus where a new Lindley 10-year would price today, according to bankers and investors. At least 160 accounts participated in the deal, with US accounts representing 54%, LatAm 25%, Europe 17%, and Asia 4%. Asset managers, pension funds and private banking took the top tickets. The issuer is raising funds to repay a $100m unsecured loan with Rabobank, a $38.6m secured credit facility with Interbank, and other debts. Ajecorp is a Netherlands-incorporated subsidiary of Grupo Embotelladora Atic, a holdco for the Ananos family, which controls the bottler known as Aje. The notes are unconditionally guaranteed by Atic and some of its subsidiaries. Bank of America Merrill Lynch led the deal, with Interbank, Jefferies and Rabobank acting as joint lead managers. The deal followed a 3-continent road show which put the issuer in front of more than 100 investors. More Peruvian debutants are expected this year, with investors hungry for defensive credits out of a country that has produced relatively few international corporate issuers to date.