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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America Movil Nears Decision on Mandates
America Movil (AMX) may mandate banks within the next two to three weeks for a potential international bond transaction to finance part of its MXP76.34bn ($6.12bn) buyback of Telmex shares, but it is still analyzing its funding options, according to a person familiar with the company’s plans. The wireless services provider is still evaluating size, tenor and currency for its potential bond offering, but can easily cover the costs of the stock purchase as it is sitting on $7.5bn in cash and recently closed a $4bn dual-tranche loan in EUR and USD. This comes after banks were heard pitching the credit on a bond trade amid expectations that it could possibly print a sub 4% coupon and smash regional records for pricing along this part of the curve. The company’s USD-denominated 2020s were trading at 3.95%-3.80% on yield basis Tuesday, or 165bp-150bp over, according to an investor. 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.
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Celfin Tie-up to Give BTG Andean Path
BTG Pactual’s proposed merger with Chilean investment bank Celfin is seen giving the Brazilian investment bank a leg-up in establishing a beachhead to expand into the Andean region. The union between the two shops will create Latin America’s largest investment bank, BTG says, and marks its first Latin American expansion outside of Brazil’s borders. The two announced the beginning of merger talks Tuesday, but gave few details about how they are expected to proceed. It is thought however that BTG will most likely buy most or all of Celfin. “It looks like an acquisition given the difference in size between the two,” says a senior official at another Santiago-based bank. Celfin lists AUM at $5.5bn, while BTG has more than $60bn under management. A value for Celfin, a private partnership, is difficult to pin down. Celfin officials have expressed a desire for Brazilian exposure as part of their bid to become a regional investment bank after already expanding into Colombia and Peru. But gaining a foothold in the region’s largest market was clearly difficult. Brazilian rival Itau tapped into Chilean wealth management through a JV with Chilean brokerage Munita, Cruzat & Claro, in which MCC still operates independently. Celfin has cross-selling agreements with Mexico’s GBM, and its Brazilian unit. BTG CEO Andre Esteves told LatinFinance earlier this year that moves into Colombia, Chile and Argentina were likely next steps, and to expect operations there as soon as this year. BTG recently filed initial registration with the CVM, the first step towards an IPO. Founded in 1988, Celfin is owned by 6 partners, including Juan Andres Camus and Jorge Errazuriz.
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Chilean Generator Readies Offering
Grupo Saesa is set to begin investor meetings today ahead of a UF2m ($94m) domestic bond offering. The 30-year bonds will pay a coupon of 3.35% and price within the next 2 weeks. Proceeds are marked for debt refinancing. BBVA Chile and IMTrust are managing the sale, rated AA on a national scale.
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CSN Places Domestic Bond
Brazilian steelmaker Companhia Siderurgica Nacional (CSN) has sold BRL1.15bn ($717m) in the local bond market. The 2019 pays 110.8% of the DI rate, and amortizes in 3 equal parts in years 6, 7, and 8. Proceeds are marked for working capital and other investments. Santander managed the sale, done under the rule 476 restricted format.
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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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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.