Mexico’s Empresas ICA is heard meeting bond investors in the US with Bank of America Merrill Lynch, according to market participants. The construction company is heard to be engaging a select group of investors with no solid deal talk, though the idea of issuing a $300-$350m bond is being considered to address debt profile. Moody’s put ICA’s Ba3 rating under review for a possible downgrade last month, citing higher-than-expected increases in debt leverage and working capital needs. In February, ICA raised $400m in 10-year NC5 bonds, following up with a $100m retap a week later.
Category: Bonds
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Leasing Bancolombia Set for Local Bond
Leasing Bancolombia is set to sell COP300bn ($166m) in local bonds today, upsizable to COP400bn. The arm of Bancolombia is able to select notes from among a 2013 tranche paying the DTF plus up to 1.95%, a 2014 tranche paying IPC plus up to 3,70%, a 2017 piece paying a 7,75% fixed rate, and a 2022 portion paying IPC plus up to 4,90%. Bancolombia is managing the sale, rated AAA on a national scale. Colombian DCM appears to remain active as other markets slow down on international volatility, at least for financial insitituions. Titulizadora Colombiana, BBVA Colombia and Banco Occidente are all slated for next week.
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Minerva Takes to the Road
Minerva has mandated Banco do Brasil, BTG Pactual, Goldman Sachs and Morgan Stanley to hold fixed-income investor meetings in Europe, the US, and Latin America starting today. The roadshow kicks off in Santiago with scheduled stops in Zurich and Geneva on Thursday and Los Angeles on Friday, before wrapping up in New York Monday. The visit follows Minerva’s recent upgrade to B2 from B3, and a recent BRL190m ($119m) convertible domestic bond issuance. The meatpacker is expected to make modest acquisitions in the near term and turn free cash flow positive in 2012. Minerva is rated B2/B/B+. It last visited the dollar market in January when it issued $250m in 2020 NC5 bonds through Goldman Sachs and Banco do Brasil.
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Pemex Postpones Domestic Jumbo
Pemex has postponed the sale of up to MXP15bn ($1.22bn) in domestic bonds planned for this week, say bankers managing the deal, because of poor market conditions. The multi-tranche deal has been put off until further notice. The state-owned oil producer was set to choose among 7-year floating-rate, 10-year fixed-rate and 15-year UDI-denominated bonds. Proceeds from the issue, rated AAA on a national scale, were to be used for investment purposes and to address existing debt. Banamex, BBVA Bancomer and HSBC are managing the deal. The Mexican state-owned oil company last came to the local market when it issued MXP10bn in 5-year bonds earlier this year.
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Titularizadora Preps RMBS
Mortgage Securitization specialist Titularizadora Colombiana plans to sell COP278bn ($154m) in senior RMBS September 21, according to a company official. The 2021 bonds would pay up to 7.8%, and are rated AAA on a national scale. Titularizadora also plans to offer COP47bn in three subordinated tranches. The bonds are backed by loans originated by Bancolombia and Davivienda. The issuer is managing the sale itself.
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Banco de Bogota Aims for $1bn Bond
Banco de Bogota, Colombia’s second largest lender, is looking to raise $1bn in the international bond market, according to an official at the bank. A tenor has not been chosen, though the bank is heard to be looking at a 7-year or 10-year. It has not yet disclosed which banks it has selected to manage the transaction, though Citi, HSBC and JPMorgan are thought to be favorites, after those institutions provided Banco de Bogota with acquisition financing last year. It secured a $1.2bn 1-year bridge through those financial institutions to help it acquire BAC- Credomatic, a sizeable Central American bank that represents half of Banco de Bogota’s assets. This would be the bank’s debut USD bond issuance.
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BI Raises DPR Bond
Guatemala’s Banco Industrial has closed a $150m securitization of dollar-denominated diversified payment rights (DPR), according to a source familiar with the matter. Wells Fargo managed the private placement, rated BBB by Fitch. A $40m 7-year tranche and $60m 10-year tranche were issued at a fixed rate, while a $50m in 7-year portion pays a spread over Libor. Further details of the transaction were not disclosed. The notes are Industrial’s third issuance out of its DPR program established in 2005. The bank processed about $6.2bn in DPR flows in 2010, up from $2.96bn in 2005, according to Fitch.
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Bice Plans Local Dollar Bond
Chile’s Banco BICE is preparing to raise $120m in the domestic market through what will be the bank’s first-ever dollar-denominated bond. The 2016s will carry a 3.50% coupon, and are rated AA on a national scale. The borrower would like to issue as soon as possible, but timing remains uncertain given the volatility in the broader market, a banker on the self-led deal says. This comes after several issuers have postponed transactions in the local market. Market appetite will be put to the test on Thursday when electricity holdco Saesa as well as fuel and forestry conglomerate Copec are expected to tap. Saesa delayed its UF2m ($94m) sale earlier this month, while Copec is looking to sell up to UF1.5m in 2021s.
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Chilean OTTP Holdco Readies Domestic Bonds
Inversiones Southwater, an Ontario Teachers’ Pension Plan-controlled holdco for 4 Chilean water assets, is planning to raise up to UF5.6m ($263m) in local bonds. Southwater has filed to establish debt programs to issue bonds with tenors of up to 10 and 30 years. It is looking to fund the July increase of its controlling positions in Essbio and Esval, according to Feller Ratings, which rates the bonds A+. Banco de Chile is managing the issuance. Southwater last came to market in 2009, raising UF2.2m.
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Colombia Preps TES Exchange
Colombia plans to offer holders of COP39trn ($21.5bn) in 5 series of domestic bonds the opportunity to exchange for 3 series of longer-dated bonds, including a new 2026. The government has scheduled September 20 as the date of the debt swap, part of a plan to decrease amortizations over the next three years. Colombia will exchange 5 series of local peso denominated treasury notes due 2012, 2013, and 2014 for bonds due 2015, 2018 and 2026. It does not yet indicate the terms of the exchange.