Brazil’s Centrais Electricas da Paraiba (Epasa) has sold BRL130m ($69m) in 2016 domestic bonds. The notes pay 113.5% of the DI rate, and amortize monthly beginning in 2012. Banco do Brasil managed the sale, done under the rule 476 restricted format. Epasa was formed in 2007 to build and operate 2 power plants in Northeastern Brazil. It is 51% owned by CPFL.
Category: Bonds
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Goldman Wraps up Europeso Issue
Goldman Sachs has issued a MXP1.15bn ($81.3m) 3-year RegS bond at par to yield TIIE+100bp, coming at the wide end of 90bp-100bp price talk. The trade also comes with premium to Nissan Mexico’s MXP2.5bn 3-year, Banco de Credito e Inversiones (BCI) MXP2bn 3-year and BNP Paribas’s MXP2bn 5-year which all priced at between 40-50bp over TIIE. The bonds are rated A1/A/A+ on a global scale.
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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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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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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.
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CFE Eyes MXP Issuance
Mexico’s Comision Federal de Electricidad (CFE) is indicating pricing of TIIE +20-25bp for its retap of 2014 bonds, according to market participants. The state-owned electricity provider is reopening for the second time the domestic floating rate 2014 and fixed rate 2020 bonds, with pricing expected as soon as today or Wednesday. It does not yet indicate the amount. It originally sold the 2014 notes with a MXP5bn ($380m) size and the 2020s for another MXP9bn in December before reopening in January for MXP4bn each. The 2014 is a floating rate bond paying the TIIE plus 26bp, and was reopened in January at 100.338. The 2020 pays a fixed 7.96% coupon and was retapped at 97.808. CFE is raising the funds for general corporate purposes. Banamex, BBVA Bancomer and Ixe are managing the sale, rated AAA on a national scale.