Marcelo Marangon has joined Itau’s investment banking division, to manage its corporate client group. Marangon was previously head of Brazilian global banking at HSBC, a position he held since 2008. Prior to that, he worked at Citigroup, where he held various positions including head of corporate finance. Itau has also hired Solange Vieira, the former president of Brazil’s civil aviation authority, to head project finance.
Category: Bonds
Posted inDaily Brief
Rede Unit Preps Bonds
Centrais Eletricas Matogrossenses (Cemat) has approved an up to BRL100m ($55m) debenture issue. Cemat, part of Grupo Rede, aims to issue 2017 bonds paying the DI plus up to 3.75%. Standard Bank is managing the sale, to be done under the rule 476 restricted format.
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Santander to Retap MXP Bonds
Santander aims to reopen its 2016 bonds for MXP2.2bn ($164m) as soon as next week, says a banker on the deal. The original MXP2.8bn issue was priced in September at TIIE+ plus 50bp. The bonds are rated AAA on a national scale. Proceeds of the self-led deal will be used for general corporate purposes.
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Arca Continental MXP Price Talk Heard
Mexican bottler Arca Continental is looking to pay TIIE+25bp on a 5-year floater and Mbonos +125bp on a 10-year fixed rate bond, according to bankers away from the deal. Arca plans to raise up to MXP3bn ($224m) today or later in the week through a bond being led by BBVA Bancomer, Bank of America Merrill Lynch and HSBC. The rating is AAA on a local scale. The issuer last came to the Mexican domestic market in November 2010, when it priced a MXP3.5bn fixed and floating rate deal via HSBC. On that occasion, the borrower paid TIIE+29bp on a 5-year and Mbonos+114bp on a fixed-rate 10-year.
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Banco Hipotecario CFO Exits
Gabriel Saidon has stepped down for personal reasons as CFO of Argentina’s Banco Hipotecario,. In the interim, his duties will be assumed by CEO Fernando Rubin.
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Brazilian Payment Co Eyes Local Issue
Valid, the Brazilian payment processor formerly known as American Banknote, plans to sell up to BRL100m ($55m) in domestic bonds. The 2013 bonds would pay the DI plus up to 1.07%. A spokeswoman declines to name the bank on the deal, to be done under the rule 476 restricted format.
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Hipotecaria Total Reopens RMBS, Again
Mexico’s Hipotecaria Total has reopened for the second time its 2041 RMBS for MXP1.5bn ($112m) at a 4.50% yield or Udibonos+287bp. The bonds are structured by Hipotecaria Total and backed by credits from government lender Infonavit. Proceeds are passed through to Infonavit and will be used for lending. The original December 2010 issuance came with a MXP1.5bn size, a 5.23% yield and a spread of Udibonos+ 270bp. Its first reopening took place in April this year when it issued MXP2.5bn at a 5.15% yield or Udibonos+215bp. BBVA Bancomer and HSBC managed the sale, rated AAA on a local scale.
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Bradesco IB Executive Steps Down
Norberto Barbedo has left Bradesco, where he was a vice-president overseeing the BBI investment banking operation, private banking, corporate banking and other sectors, according to a source at the bank. He is leaving for personal reasons. His responsibilities for overseeing BBI will go to fellow executive team member Sergio Clemente, an executive director.
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BB Reaches 59% of Banco Patagonia
Banco do Brasil’s stake in Banco Patagonia has reached 59.0% of the voting capital, following a tag-along offer to shareholders. In the process, the Brazilian Bank acquired 135.2m shares, to give it 424.1m total. At a net price of $0.98 per share, it will spend about $132m to increase its position. The move comes after BB bought 51% of the Argentine lender in 2010 for $479.7m.
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Cemig Targets Int’l Debt for M&A Growth: CFO
Brazil’s Cemig plans M&A growth across all of its business areas both internationally and domestically, and needs cross-border debt to fund it, its CFO says. “The market is not open for issuance in the international market, but we are continuing to evaluate the market for a window to issue,” Luiz Fernando Rolla tells LatinFinance. Cemig’s Taesa unit this week opted to issue BRL1.4bn ($783m) in domestic short-term debt to help fund the June purchase of a 50% stake in Abengoa Brasil to tide it over until a preferred cross-border bond is available. While competitive local market financing is considered more attractive than cross-border, as tax costs associated with cross-border issuance make international bonds less appealing, Rolla reiterates that local markets are not deep enough to finance Cemig’s expanding capex needs and M&A plans. “We have plans for M&A in the short-term and Cemig will use maximum effort to acquire and add value to our company,” Rolla says. Cemig seeks both organic and M&A growth across all 3 of its business areas – generation, transmission and distribution. Cemig is considering buying a 10% stake in the $11bn Belo Monte hydroelectric dam in Brazil’s Para state in a joint effort with power distributor Light. Cemig is also holding talks with Energias de Portugal (EDP) over a stake in two distribution assets which represent 20% of the total assets of the Portuguese power utility. “We will visit Portugal to demonstrate interest and if everything goes well we will make an offer,” Rolla says. The company is also eyeing the auction of five Chilean transmission line assets and may bid in partnership with Abengoa Spain or Sao Paulo-based Alupar Investimento. Further details of the potential transactions were not disclosed. Bradesco, Citi, and Santander have been hired to lead the potential cross-border sale, to be done in BRL or USD for about BRL1.2bn equivalent. The one-year local promissory notes announced this week pay the DI plus up to 106%. Taesa l