Banco de Occidente is preparing to sell COP200bn ($112m) in shares in Colombia’s local market following the approval of its prospectus Wednesday. The beginning of the sale period should be announced within the next two weeks. The bank plans to sell 6.06m shares at COP33,000 each, as it looks to raise funds to increase its capital base. Existing shareholders have first rights on the offer. The bank’s own brokerage and Deceval are managing the sale.
Category: Bonds
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Davivienda Upsizes, Raising $279m Equivalent
Colombia’s Banco Davivienda has sold COP500bn ($279m) in domestic bonds, upsizing from COP400bn after getting 3.4x demand. A COP90bn 2013 tranche pays the IBR+1.68%, a COP90bn inflation-linked 2015 tranche pays 3.60%, a COP159bn inflation-linked 2019 tranche pays 3.99%, and aCOP161bn inflation-linked 2022 potion pays 4.23%. Davivalores managed the sale, rated AAA on a national scale.
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Daycoval Readies Bank Bonds
Banco Daycoval is preparing to raise BRL200m ($125m) in Brazil’s domestic markets through Letras Financeiras, special bonds designed for bank financing. The mid-sized bank expects to road show and place the 2-year notes next week, according to an official. The interest rate is to be determined during bookbuilding and has been capped at 115% of the DI rate. BTG Pactual and Itau are managing the sale, rated Aa1 on a national scale and done under a BRL1bn program.
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Entel Preps Domestic Bond
Chilean telecom Entel is set to sell UF5m ($235m) in domestic bonds Thursday of next week. The issuer may chose among a 5-year CLP-denominated tranche paying a 6.1% coupon, a 5-year UF portion paying a 3.2% coupon and a 21-year tranche with a 3.5% coupon. The exact amounts and the yields are to be determined at the time of sale. Bice and IMTrust are managing the sale, currently on the road and rated AA minus on a national scale.
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Finandina Places Domestic Debt
Colombia’s Banco Finandina has sold COP72bn ($40m) in domestic bonds, after garnering some COP97bn in demand. A COP41bn 2013 tranche pays the IBR+2.09%, a COP12bn 2014 piece pays IBR+2.50%, and a COP19bn 2016 inflation-linked portion pays 4.20%. Corredores Asociados led the sale, rated AA+ on a national scale.
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Goldman to Issue Europeso
Goldman Sachs plans to issue up to MXP1bn ($80m) in floating rate Europeso bonds with talk heard in the TIIE plus 90-100bp range. The 3-year RegS only transaction is scheduled for the first week of September and will be listed on the Luxembourg Stock Exchange. The trade is being compared against Nissan Mexico’s MXP2.5bn 3-year, Banco de Credito e Inversiones’s (BCI) MXP2bn 3-year and BNP Paribas’s MXP2bn 5-year. Those bonds were priced anywhere between 40bp-50bp over TIIE, making the Goldman Sachs issue look cheap. But according to a banker watching the trade, this deal is coming wider to compensate for risk perception given that Goldman Sachs’s 5-year CDS is trading at 250bp versus 157bp for Mexican sovereign protection. Still from Goldman Sachs’ perspective, funding costs are still attractive as the notes are expected to be swapped back at Libor+180bp, he adds. The bonds are rated A1/A/A+ on a global scale.
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Mexichem Price Talk Heard
Price talk on Mexichem’s 5-year floating rate local bond is being heard at 50bp over TIIE. The Mexican chemical conglomerate will issue up to MXP2.5bn ($199m) in 2016 bonds early September to repay bridge loans used to take out MXP2.5bn in 2014 bonds. Leads are Banamex, BBVA Bancomer, HSBC and IXE. This comes as the company prepares to close a $1bn 3-year revolver via Bank of America, BBVA, Citigroup, HSBC and Santander. Pricing on the loan is tied to a ratings grid offering L+90bp out of the box for utilization of less than 33%, 95bp for utilization of between 33%-67% and 100bp for over 67%. Spreads tighten or widen by 20bp for each ratings notch above or below BBB-. Mexichem is rated AA/Aa3 on a national scale, and carries a BBB minus rating for foreign currency issues.
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Santander’s Barbosa Goes to Abril
Fabio Barbosa, who announced his departure from Santander Brasil earlier this week, will become CEO of media conglomerate Grupo Abril. Barbosa is set to leave his current position as chairman of Santander Brasil September 22, and will assume his new role on September 26 at the publisher of numerous media titles, including Veja and Playboy Brazil. Current Abril CEO Giancarlo Civita, a member of the controlling family, will stay on the board. Barbosa had quit his role as CEO of Santander at the beginning of the year and was replaced by Marcial Angel Portela.
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Isolux Unit Plans Local Issue
Cachoeira Paulista, controlled by Spain’s Isolux Corsan, is preparing a BRL200m ($125m) bond sale, it says. The 11-year bonds are to be divided into a fixed-rate tranche whose value adjusts with inflation and a tranche that pays a rate set to 7-year government NTN-B bonds. The exact amount of each and the interest rates they will pay remain to be defined. Santander is managing the sale, which has yet to be rated.
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Peru’s BCP to Hit the Road
Banco de Credit del Peru (BCP) has mandated Bank of America Merrill Lynch and Morgan Stanley to arrange fixed-income investor meetings in Europe, the US and Latin America starting next week. The size of the deal has yet to be determined though a 144A/RegS may follow if market conditions permit. Investor meetings kick off on August 31 with scheduled stops in Switzerland on Monday, in Los Angeles and London on Tuesday before wrapping up in Boston and New York on Wednesday. The bank, established in 1889 is considered Peru’s oldest and largest bank, and is rated Baa2 and BBB by Moody’s and Fitch. BCP was last in the international markets in March when raised $700m in new 2016s that were priced at 98.815 with 4.75% coupon to yield 4.792% or UST+275bp. At the time BAML and JP Morgan acted as leads. BCP had been considering a global PES deal but opted for a USD issue instead.