Standard Chartered in talks with several potential buyers for its Latin American private banking assets, a spokeswoman says. The bank is looking to refocus on wealth management in its core Asian and European markets. A deal would not affect its wholesale banking in the region. There is no strict timetable for the process, and the bank is not using an advisor. Through offices in Chile, Miami and Uruguay, Standard Chartered services private banking clients in Argentina, Brazil, Chile, Colombia, Mexico, Peru, Uruguay and Venezuela.
Category: Bonds
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Transelca Eyes Debt Sale
Colombian power transmission firm Transelca has filed for a COP180bn ($100m) domestic bond issue, according to a company official. The company will be able to choose among maturities between 1-15 years. The official declines to name the managing bank, as the transaction, rated AAA on a national scale, still remains to be approved by the board.
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Chile Heard Awarding Mandate
Chile is heard awarding a mandate to two banks for an international bond transaction, putting the sovereign one step closer to going to market. An official announcement has yet to be made, but HSBC and JPMorgan are thought to be favorites given they helped lead the sovereign’s last transaction in 2010 when it priced a $1.5bn 2-tranche USD and global CLP-denominated 10-year offering, rated Aa3/A/A+. Deutsche Bank may also be a contender as it has clinched several Chilean corporate mandates over the years. The sovereign has expressed interest in a benchmark transaction with the idea of raising up to $1.5bn in 2011.
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CS Opts for Rest of Hedging-Griffo
Credit Suisse Group plans to buy the remaining 50% it doesn’t own in Brazilian asset manager Hedging-Griffo, according to an official at Hedging-Griffo. The Swiss bank paid BRL635m for a 50% plus one share stake in 2006, and had the option to buy the rest by the end of this year. The Credit Suisse Hedging-Griffo name will remain the same, with the asset management retaining decision-making autonomy within the company. Founding partner Luis Stuhlberger will remain at the company.
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Mexico Considers 5-Year on Standalone Samurai
Mexico is looking at a tenor in the 5-year range as it prepares to engage Japanese investors next week about the possibly of issuing a Samurai bond without a JBIC guarantee. “Since it will be the first issue in a long time from a triple B sovereign without a JBIC guarantee the sweet spot is in the 5-year range, though there are investors willing to have a longer tenor,” Alejandro Diaz de Leon, the country’s public credit head, tells LatinFinance. Size will also likely be comparatively small at around $500m equivalent, he adds. Up until now, Mexico has sought longer maturities but with the aid of a JBIC guarantee, most recently selling JPY150bn ($1.8bn) of 10-year bonds at a 1.51% yield in October. Coming out on a standalone basis is part of a natural evolution for issuers wanting to establish a permanent presence in this market. JBIC’s program was designed to support such initial approaches before issuers were ready to go out on their own, Diaz says. While investor meetings next week via Bank of Tokyo Mitsubishi, Citigroup and Nomura will provide a clearer picture of whether there is sufficient appetite for such a trade, Diaz says Mexico has proven popular among investors despite recent volatility. “Mexico is a sound credit that can provide some cushion and diversification away from markets that are more volatile,” he adds. Technical may also favor the sovereign as there has been a dearth of paper form utilities in the wake of the recent tsunami, creating a window of opportunity for a borrower like Mexico.
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Tarjeta Naranja Selects Banks
Argentina’s Tarjeta Naranja (TN) has mandated Deutsche Bank and Bank of America Merrill Lynch to lead a $100m retap of its fixed-rate 2017 notes, according to a company spokesperson. In January, Argentine credit card company raised $200m from the sale of a new 2017 bond with the same mandated banks, pricing it at par to yield 9%. The reopening would bring the outstanding size to $300m.Tarjeta Naranja is 80% owned by Banco de Galicia, the third largest private sector bank in Argentina by deposits. First established in the Province of Cordoba, the company offers its own branded cards, as well as Visa, MasterCard, and American Express, to the middle class. It is Argentina’s second largest credit card provider. Fitch has assigned a long-term foreign rating of B for the upcoming retap.
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ALL Raises Local Debt
Brazilian freight transporter America Latina Logistica (ALL) has sold BRL360m in 2016 debentures in Brazil’s local market. The bonds pay the DI+1.65% and amortize equally in years 4 and 5. Itau managed the transaction, done under the rule 476 restricted format.
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Cemig’s Taesa Targets Global BRL
Cemig’s Transmissora do Atlantico de Energia Eletrica (Taesa) may mandate banks as soon as this week as it looks to raise BRL 1.3bn ($814m) in the international markets, preferably through a global BRL bond, says a company spokesperson. The Brazilian electrical transmission company is seeking BRL1.2bn to acquire a 50% stake in Spanish-owned Abengoa Brasil with funding due next month. Remaining proceeds will be used to extend its debt profile. In June, Spanish engineering company Abengoa announced its intention to sell a 50% stake in four transmission concessions and 100% of concession company NTE in Brazil for EUR485m in cash to Cemig. While Taesa is strongly leaning towards a Global BRL, it is also evaluating the market for a potential USD bond. Considered one of the largest electric power transmission companies in Brazil, Taesa was established in 2006 as a holding company under the name Terna Participacoes. The pending acquisition is expected to get approval by Brazil’s Cade within the next couple of months. Taesa last came to market in 2010 when it raised BRL600m through a 2-tranches debenture offering via Banco do Brasil, BTG Pactual, Citibank and HSBC. This came after the company had carried out an IPO on the Sao Paulo Stock Exchange in October 2006. Majority shareholders are Fundo de Investimentos em Participacoes Coliseu and Cemig, which hold 38.59% and 56.69% stakes respectively.
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BTG Takes Small Step toward IPO
BTG Pactual has filed to become an open company in Brazil, a move considered to be the first step in the IPO process. However, the Brazilian investment bank notes that the registry “does not indicate that an IPO is imminent.” CEO Andre Esteves told LatinFinance in February that the bank saw an IPO in the next 1-2 years. The firm had reportedly been considering a float last year, but it instead went to the private market. In December, it issued $1.8bn in new shares to a consortium including Asian and Middle East sovereign wealth funds.
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Ford on Schedule for MXP Bond
Mexico’s Ford Credit de Mexico is on track to issue up to MXP1bn ($ 81m) in floating rate bonds in the domestic market this month. The Mexico-based auto finance services company plans to issue 18 month notes that will pay a spread over TIIE. The subsidiary of Ford International will road show mid-September with expected pricing on September 23. This will be Ford’s first bond transaction in the local bond markets since 2007. Ford has mandated HSBC, Scotia Capital, Actinver, and IXE for the transaction. Moody’s Investors Service has assigned A2.mx to the proposed notes.