Banco do Nordeste do Brasil generated close to $1bn in orders for a new $300m 2019 bond, opting to sell a dollar deal over a BRL. “The appetite for BRL exposure was lukewarm and people got nervous and so the issuer opted for a dollar transaction instead,” said a banker following the trade. The Brazilian development bank priced the Baa2/BBB senior unsecured notes at 99.257 with a 4.375% coupon to yield at the tight end of 4.500% area guidance revised from an earlier 4.625%. Leads pinned an approximately flat concession to its existing curve, and the bond was seen 25bp-30bp wideof Banco do Brazil’s 2020s. Demand was heard coming from a mix of institutional and retail accounts with over 100 accounts participating. Proceeds are marked for general corporate purposes. BAML, HSBC and Itau managed the 144a/RegS transaction. Banco do Nordeste last issued in 2010, when it raised $300m in its first dollar bond transaction since 1997. The 3.625% 2015 bond priced to yield 3.782%, through Deutsche Bank, HSBC and UBS.
Category: Bonds
Braskem Bond Draws Crowd
Braskem took advantage of a decent tone in the markets Thursday to raise $500m through a new 2022 bond. By whispering 5.625%-area and emerging with 5.500%-area guidance, the Brazilian petrochemical producer was seen offering a decent concession and soon generated a book that reached a healthy $2.8bn with some 250 accounts putting in orders. “Braskem played it safe with a smaller size, allowing it to come back a later date and make a few retaps,” says an investor who saw a 5bp-10bp concession against Braskem’s existing curve. In the end, the bonds priced at 99.809 with 5.375% coupon to yield 5.400%, at the tight end of guidance. The 5bp-10bp concession level comes versus Braskem’s existing 2021 bonds, trading at 104-105 or 5.19% yield pre-announcement, and adding 15bp-18bp for curve extension, according to investors and bankers. The issuer saw demand from a good mix of institutional, and retail accounts from across the US, Europe and Latin America. The paper was trading down 0.01 point in the grey market Thursday afternoon, according to an investor. Banco do Brasil, BTG, HSBC and JPMorgan managed the Baa3/BBB minus sale. Braskem’s previous transaction was a reopening of its 7.375% perpetual bonds in February, adding $250m to the original $450m amount, at a 7.345% yield, through Deutsche Bank, Itau and HSBC.
OAS Preps Debentures
Brazil’s OAS is planning a BRL300m debenture sale, according to Fitch, which assigns a BBB national scale rating. The 2015 bonds feature an 18-month grace period and are guaranteed be Construtora OAS. Proceeds are destined to improve the builder and engineer’s debt profile. Investor relations officials did not respond to a request for additional details.
Arauco Set for Local Bond
Celulosa Arauco is expected to issue up to UF5m ($232m) in the Chilean local bond market today, according to DCM sources. The paper company is able to choose from a 2017 bullet with a 3.50% coupon and a 2033 tranche with a 10-year grace period and 4.00% coupon. About 70% of proceeds would cover investment financing and 30% would repay liabilities of Arauco and its affiliates. IMTrust is leading the sale, rated AA on a national scale. Arauco last issued in the local markets in 2010, through a UF5m 2020 sale, according to Dealogic, and raised $500m in 10-year bonds in the dollar markets in January.
Davivienda Issues Bonds
Colombia’s Banco Davivienda has issued COP400bn ($226m) in subordinated bonds in the domestic market. It sold COP181.4bn in 2022 inflation-linked bonds paying 4.37% and COP218.6bn in 2027 inflation-linked bonds paying 4.56%. The issue saw demand of COP733.9bn, with proceeds destined to fund its capital needs. Davivienda self-led the sale, rated AA+ on a national scale.
Intra Mexicana Preps Securitization
Intra Mexicana plans to raise up to MXP3bn ($228m) though a domestic securitization debut, scheduled for May 3. 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.
Marfrig Ends Investor Meetings
Marfrig has wrapped up fixed-income investor meetings after seeing accounts in Europe, Latin America and the US, with no indication of a transaction. The B1/B+/B+ rated issuer was escorted by Bradesco, BTG Pactual, Credit Suisse, Deutsche Bank and Morgan Stanley. Marfrig was last in the bond market in May 2011 when it raised a $750m 2018 bond to yield 8.6%.
Sigdo Koppers Issues UF Bond
Chilean conglomerate Sigdo Koppers has issued UF2m ($92.8m) in the domestic bond markets. The 2033 bond with a 10-year grace period came with a 4.0% coupon and priced at a premium to yield 3.98%, according to a person familiar with the deal. Funds raised from the issue, which saw 1.8x demand, are to be used to finance new investment and refinance debt. BCI, Celfin and Corpbanca managed the sale, rated A+. Sigdo Kopers has a presence in the service, industrial, commercial and automotive sectors.
Toyota Readies MXP Bond
Toyota Financial Services Mexico is preparing to issue up to MXP1bn ($76m) the domestic market, according to a regulatory filing. The bonds would be the third issuance under a MXP10bn program, and pay a spread to the TIIE benchmark. Proceeds will 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.
Unifin Preps MXP ABS
Mexico’s Unifin Financiera is preparing to issue up to MXP1bn ($76m) in domestic asset-backed bonds next week, with a preliminary pricing date of May 2. Unifin had originally been considering a sale this week of the 2017 floating-rate bonds. The bonds are backed by credit receivables for automobile and equipment leasing contracts. Ixe is leading the transaction, rated AAA on a national scale. Unifin last raised MXP800m through a 2016 ABS in November, pricing at the TIIE+165bp.