Interproperties, the real estate unit of Peru’s Intergroup, is meeting investors in Chile and Peru this week, with the aim of issuing a $185m 2023 RegS-only bond, according to bankers managing the sale. The notes will be fully secured by the unit’s commercial real-estate assets operated by Real Plaza, and proceeds are to fund Real Plaza’s development of new products. IMTrust is managing the sale. In October 2010, Barclays and IM Trust brought a similar transaction to market for Intergroup’s holding company IFH Peru. At the time it raised $150m through a RegS 8.625% 2019 that was priced at 99.279 to yield 8.75%. In December it reopened the same bond for another $100m, pricing it at 106.895 to yield 7.25%.
Category: Bonds
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Peru Nears Bank Mandate
Peru is close to mandating banks to lead an international bond transaction, the country’s Finance Minister Luis Miguel Castilla told LatinFinance Wednesday on the sidelines of the Peru Investment Forum in New York. Peru has been analyzing a variety of funding options, but has a “strong preference for sol-denominated debt,” he added. Castilla declined to comment about timing, tenor and size, but said the sovereign is closely monitoring the market for windows of opportunity. In July, Peru filed an SEC shelf to issue up to $5bn in new debt securities. It last issued in the international markets in November 2010 when it sold $2.5bn in dollar and sol-denominated debt (Baa3/BBB minus) in a transaction that was led by Bank of America Merrill Lynch and Morgan Stanley. At the time, the sovereign raised $1bn in new 2050s that priced at 96.164 to yield 5.875%. It also raised $1.5bn equivalent through a retap of sol-denominated 7.84% Global 2020s, reopening them at 114.718 to yield 5.75%. The 5.625% 2050s have been trading at around 102.75-103.75 to yield 5.45% on the bid side.
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Titularizadora Places COP RMBS
Mortgage Securitization specialist Titularizadora Colombiana has sold COP258bn ($138m) of senior RMBS bonds after generating a book that was 1.5x oversubscribed. The 2021 bonds pay up to 6.84%, and are rated AAA on a national scale. The sale also included COP44bn in three subordinated tranches. The bonds are backed by loans originated by Bancolombia and Davivienda. Today, Banco de Ocidente is also scheduled to sell COP300bn of bonds in various tranches with maturities ranging from 3-10 years.
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BNDES Approves BRL3bn Vivo Financing
Brazilian development bank BNDES has approved a BRL3bn ($1.7bn) loan for Telefonica’s Vivo. BNDES officials decline to specify the interest rate or tenor. The Brazilian unit of the Spanish telecom is set to use proceeds for infrastructure and technology development and research and development. Vivo is also set to invest BRL22m in social programs.
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CFE Gives Fixed-Rate Guidance
Mexico’s Comision Federal de Electricidad (CFE) is out with price talk of MBonos+125bp-135bp for the retap of its fixed rate 2020 bonds, according to market participants. The state-owned electricity provider is reopening for the second time a domestic floating rate 2014 and fixed-rate 2020 bonds, with pricing expected Wednesday. Price talk of TIIE +20-25bp emerged earlier in the week for the floating-rate portion. The total size of the transaction will be up to MXP7bn ($528m). CFE is raising the funds for general corporate purposes. Banamex, and BBVA Bancomer and ING are managing the sale, rated AAA on a national scale.
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Colombia Executes Jumbo TES Exchange
Colombia has completed an exchange of COP6.4trn ($3.46bn) in 5 series of domestic bonds for COP6.38trn in 3 series of longer-dated bonds. “This was the largest peso debt swap in Colombia’s history,” says Juan Manuel Quintero subdirector of internal financing at Colombia’s Ministry of Finance. The sovereign has issued COP2.15trn in 8.0% TES bonds due 2015 at a 6.0% yield, COP2.18trn in 11.25% 2018 notes at a 6.80% yield and a new COP2.04bn 7.50% 2026 bond to yield 7.56%. It turn the government has accepted COP6.4trn in orders from holders of 5 series of bonds due 2012-2014, of which there was COP39trn ($21.5bn) outstanding. Demand reached COP8.7trn.
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Agrosuper Plots Local Bond
Chilean food products company Agrosuper plans to raise up to UF5m ($230m) in the country’s domestic bond markets. The issuance is still awaiting final regulatory approval, but a banker managing the sale says it is expected in the first half of October. The issuer will choose among the following options: an up to UF5m 3.4% 2018 inflation-linked bond, an up to CLP100bn 6.1% 2018 peso-denominated bond, an up to UF5m in 3.4% 2021 inflation-linked bonds and up to UF5m in 3.8% 2032 inflation-linked bonds. Proceeds are to be used to repay debt and for expansion. Banchile and Larrain Vial are managing the sale, rated AA minus on a national scale. Agrosuper is ramping up its export capacity, and was also – at least before volatility hurt the regional new equity issuance pipeline – in the early stages of planning an IPO, also through Banchile and LarrainVial.
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Anhanguera Readies Domestic Debt Issue
Just a day after announcing the BRL510m ($286m) acquisition of Uniban, Anhanguera Educacional Partipacoes says it plans to borrow BRL400m in the Brazilian domestic bond market. The secondary education company is looking to sell a 2018 bond paying the DI+1.95%, amortizing twice yearly beginning 2015. Itau is managing the sale, to be done under the Rule 476 restricted format. Previous local bond issuance and a December BRL734m equity follow-on have helped fill Anhanguera’s acquisition war chest thus far, But the Uniban purchase agreed this week – taking out one of the few big university players left – was larger than its typical sub-BRL100m buys and may require some replenishment of funds. The issuer also has a BRL200m bond maturity next year. S&P has placed Anhanguera’s BB global rating on negative watch until it can assess the implications of the Uniban buy. This comes less than a month after an upgrade to BB from BB minus.
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Banco Occidente Readies COP Bond
Colombia’s Banco de Occidente plans to sell domestic bonds Thursday, according to a banker managing the sale. The banker does not give the exact amount, though the issuance comes under a COP1trn ($545m) program and is likely to be in the range of COP300bn-400bn. The unit of Grupo Aval will be able to choose from 3-year bonds paying a fixed rate or a spread to the IBR rate, 5-year bonds paying a fixed rate or a spread to inflation, 7-year bonds paying a spread to inflation, and 10-year bonds paying a spread to inflation. Corficolombiana is managing the sale, rated AAA on a national scale.
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BBVA Colombia Sells Local Bond
BBVA Colombia has sold COP353bn ($192m) in domestic subordinated bonds, upsizing the transaction by COP53bn. A COP95bn 2018 tranche pays IPC+4.28%, a COP106bn 10-year tranche pays IPC+4.45%, and a COP152bn 15-year portion pays IPC+4.60%. BBVA led the deal, rated AAA on a national scale. Titularizadora Colombiana is set to follow Wednesday with a COP278bn RMBS offer, and Banco Occidente is expected Thursday.