BNDES has made a habit of supporting consolidation to create national champions. But was its attempt to wade into the fight between Carrefour and Casino a miscalculation?
Category: Bonds
Posted inMagazine
Integrating Platforms
Technological integration through customer relationship management (CRM) platforms is becoming increasingly important as banks broaden their presence across LatAm.
Posted inMagazine
Keeping the Best on Board
Brazilian investment bankers are seeing upward wage pressures abate as newcomers enter the marketplace.
But veteran players can still command top dollar.
Posted inMagazine
New Horizons
The pipeline for Colombian corporate bond and equity transactions is swelling as issuers look to take advantage of the sovereign’s new investment-grade status.
Posted inMagazine
Overblown Bubbles
Fears of a credit bubble in Brazil may be overblown. Loan growth remains robust but it is slowing as central bank measures kick in.
Posted inMagazine
Restricted Success?
Brazilian local bond volumes are soaring as issuers swarm to file rule 476 offerings that make deals easier and faster for listed and non-registered issuers alike.
Posted inDaily Brief
AMX Lands Second CHF
After much speculation about a possible dollar trade, Mexican telecom giant America Movil (AMX) quietly emerged Tuesday with CHF270m ($330m) 2016 bond that came with a reoffer price of 99.775 to yield 2.039%, or mid-swaps plus 86bp. The deal marked the first non-Swiss issuer to tap this market in several months. Though the borrower came at a wider mid-swap spread than its previous foray in the Swiss market, it achieved a tighter yield and coupon. AMX last raised Swiss francs in 2010 when it issued a CHF230m 2.25% 2015 that was priced with a 2.24% yield or at mid-swaps plus 65bp. Retail, institutional and private accounts were all heard participating. The company last came to the bond market in June 2010 with a EUR/GDP bond transaction, raising EUR1.75bn and GBP650m via Deutsche Bank, HSBC, and BNP Paribas. The company is heard looking at a USD bond transaction and nearing the process of selecting banks. AMX is rated A2/A/A. Credit Suisse led the CHF transaction.
Posted inDaily Brief
Banco do Brasil Sends out RFPs
Banco do Brasil has sent out RFPs to raise funds in the international bond markets, according to market participants. It remains unclear whether the Brazilian lender will try its luck with USD or perhaps a global BRL, but it is heard considering raising up to $500m as part of a global medium term program. Banco do Brasil last issued $1.5bn in Tier 2 2022 bonds in May via BAML, Banco do Brasil, BNP, JPMorgan and Banco Votorantim. The bonds were rated Baa2 and priced with a 5.875% coupon to yield 6.044% or 287.5bp over. The bank also issued EUR 750m in 2016 bonds in January to yield 4.625%. Those bonds were rated BBB/BBB minus/Baa2 and were brought to market by Banco do Brasil, BNP Paribas, Banco Votorantim and Deutsche Bank.
Posted inDaily Brief
Uruguay Heard Awarding Mandate
Uruguay is heard awarding a mandate for an international bond transaction, bringing the sovereign one step closer to coming to market. An official announcement has yet to be made, but Citi is thought to be a potential mandate given its regular presence on Uruguayan bond transactions. The country’s move to file an up to $560m debt shelf with the SEC last month, as well an upgrade to BB+ that same week by S&P, raised speculation in July that the sovereign could try a liability management trade to retire more US dollar debt or simply take a stab at retapping its existing inflation-linked notes. This falls in line with the government’s strategy of de-dollarizing its debt, something that the ratings agencies have also cited as a positive. Currently, the sovereign has three outstanding UI bonds, its 2018s, 2027s and 2037s. Uruguay last came to market in May when it issued JPY 40,000 ($493m) in 2021 Samurai notes to yield 1.64%, but hasn’t been in the broader markets since late 2009. Uruguay’s UI bonds were trading in the 3%-4% range late Tuesday.
Posted inDaily Brief
BT to Test Appetite for Global BRL
Brasil Telecom (BT) is heard considering a global BRL bond as it prepares to meet fixed-income investors through Bank of America Merrill Lynch, Citi, Deutsche Bank, HSBC, Itau and Morgan Stanley. The company is rated Baa2/BBB and is a subsidiary of Telemar Norte Leste S.A.(Baa2/BBB-/BBB), Meetings will start on Wednesday, August 31, in Chile, which is becoming an increasingly popular destination for borrowers looking to sell global BRL paper. Roadshows will continue in London on Monday September 5, in Los Angeles and Switzerland on September 6 and in New York and Boston on September 7. The parent Telemar last tapped overseas investors in December 2010, when it pulled the trigger on a EUR750m 2017 bond that was priced at 98.828 with a 5.125% coupon to yield 5.33%. On that occasion HSBC, Santander, BB Securities and Espirito Santo Investment Bank acted as leads. The operator of the Oi brand also sold $1bn in 2020 bonds in September 2010. Those bonds were priced to yield 5.50%, through BAML, BNP, BTG and Itau. Telemar has not issued an international bond through the Brasil Telecom unit since acquiring it in 2008. As part of a share structure reorganization expected to take effect by the end of the year, Telemar has decided to make Brasil Telecom the group’s sole traded share, changing its name to Oi, SA.