Panama’s Empresa Nacional de Autopista (ENA) has extended pricing for its dual-tranche $395m bonds. The corporation wholly owned by the Republic of Panama had set its sights for Wednesday pricing but has opted instead to price and disclose allocations today. The deal comes amid continued uncertainty in the markets as the issuer looks to cover two tranches in the amount of $170m and $225m to refinance $150m of 6.95% amortizing 2025 bonds, a precursor to the sale of the Corredor Sur tollroad for $420m. Tranche A was heard covered by 3x as of late Wednesday while tranche B’s coverage has not been disclosed. ENA launched $170m tranche A at 5.75% with a $225m tranche B at 5.25% Wednesday. ENA’s bonds, rated BBB/BBB minus, were offering investors between high 100s to mid 200s over the Panama sovereign. “The sovereign is trading so tightly. If you look at the Panama 2015s they are being quoted at 2%, so nearly anything with a decent spread over the sovereign is attractive,” says Carl Ross managing director of investments at Oppenheimer & Co. The 144A/RegS deal is being managed by HSBC and Global Bank.
Category: Bonds
Fovissste Sets Guidance
Mexican government housing agency Fovissste has set guidance of 4.70% for an up to MXP4.2bn ($345m) equivalent UDI-denominated RMBS, according to a banker on the deal. Pricing, originally set for August 17, is scheduled for today. Proceeds from the 2040 bond will be used to originate mortgages. The issuer last raised MXP3.6bn in June when it sold a UDI-denominated RMBS that generated MXP10bn in demand and priced to yield 4.70% or 339bp over Udibonos. BBVA Bancomer, BAML, IXE, Banorte are bookrunners on this deal. The bonds are rated AAA.
Itau Chile Places Local Bond
Itau Chile has sold UF1m ($47m) in domestic bonds. The 2031 notes with a 13.8-year average life priced at 103.63 with a 4.0% coupon to yield 3.73%. Itau managed the sale, rated AA/AA minus on a national scale. The sale is the second off a program from which Itau can issue periodically, and follows an identical UF1m sale last week which secured an identical coupon and yield.
Perfect Time for AMX Issue?
America Movil (AMX) could achieve the region’s lowest-ever coupon on a 10-year if it were to tap the markets now, and bankers have been heard pitching the idea to the Mexican telecom giant as it looks to spend up to MXP76.34bn ($6.51bn) to buy back the rest of the Telmex shares it doesn’t own. However any deal from the blue-chip issuer is unlikely to be imminent, say bankers. Not only is CFO Carlos Garcia Moreno only just coming back from holiday this week, but he is not the type of person to rush into a transaction no matter how low yields are, they say. Furthermore the company is sitting on $7.5bn in cash and it has recently closed a $4bn dual-tranche loan at very attractive spreads. With US telecom AT&T printing this week a $5bn multi-tranche bond offering that included a 2021 with a 3 875% coupon, bankers think AMX could meet with similar success. Indeed, AMX is a stronger credit with an A2/A/A rating against AT&T which carries an A2/A-/A rating, with two negative outlooks. “AMX is not like AT&T, which needs to keep raising debt,” says one DCM official. “But it is not just because AT&T that bankers are pitching AMX. They are looking at where US Treasuries are and it makes sense to come. Not only could they get their lowest coupon, but it would be the lowest coupon out of Mexico or any corporate out of Latin America.” A sub 4% coupon is not beyond the realm of possibility and at that level AMX would beat Coca Cola’s Femsa’s (KOF) record 4.624% coupon set in early 2010. Still the borrower can afford to wait and will also be looking at other factors such as new issue premiums which are likely to be higher now than when it did its dollar deal in early 2010. “Let say they do $2bn, I think they might pay 10bp (new issue premium) or more, and I don’t see them willing to do that,” says another banker. And although it may seem somewhat irrelevant given the coupon size, spreads would also be wider than the 140bp it achieved on its last USD 10-year. Bankers say UST yields
Davivienda’s Sights on Foreign Stock, Bond
Colombia’s Banco Davivienda plans to raise up to $350m in subordinated bonds overseas, and also continues to work on plans for a foreign stock listing. The mortgage lender, which has designs on expanding into Peru, Chile, and Central America, would be taking advantage of low rates in what would be a debut international issue. The sale would not come for at least a few months and possibly not until next year, with the process of choosing banks not yet started, says an official at the bank. A 7-year tenor is being considered, with subordinated bonds best fitting the bank’s capital needs, he says. Davivienda also reiterated it plans on an eventual ADR listing. There are no details regarding the timing of this process, though it is also thought to be a 2012 event, and may or may not involve the sale of new shares. The lender had indicated in the past it wished to sell bonds and shares abroad, but plans were put on hold during the 2008 credit crisis. Davivienda raised $228m equivalent in a domestic market IPO last year, and is a frequent issuer in the local bond market. The bank is expected to have a COP300bn-COP500bn bond sale within the next month, after postponing it last week.
Chilean Pharmaceutical Maker Plans Bonds
Laboratorios Andromaco has filed a shelf to sell domestic bonds in Chile. The maker of dermatological and other pharmaceutical products will be able to issue off a UF2m program with tenors of up to 10 years and off a UF2m program with maturities of up to 30 years. It does not name a lead manager. Proceeds are marked for investments, working capital and debt refinancing.
Citi Names Brazil Originations Head
Citi banker Mariano Gaut has been named head of Brazil capital markets origination at the US bank. The move comes as Citi tries to make its mark in the region’s largest economy after recently hiring Andre Kok as managing director and head of global banking for Brazil. Gaut comes from Citi in the US where he was head of the bank’s equity-linked business. He will move to Sao Paulo in his new role and will work alongside the Brazil global bank team led by Kok. Gaut will report to John Chirico and Richard Zogheb, co-heads of CMO. Meanwhile, in New York, Chris Gilfond and Mario Espinosa will continue to co-head LatAm DCM, while Richard Blackett and Juan Carlos George will do the same for LatAm ECM. Both New York teams will continue to direct strategy across LatAm, including Brazil.
Colombia’s Popular Preps Local Foray
Colombia’s Banco Popular is set to issue COP250bn-COP400bn ($140m-$225m) in local bonds today. The bank is able to select from 1.5, 2 and 3-year tenors set to the IBR rate, and 4-year bonds indexed to the IPC. Proceeds will support the bank’s capital base. Popular is managing the sale, rated AAA on a national scale.
Elektro Prices Domestic Bond
Elektro has completed a BRL300m ($190m) bond sale in Brazil’s domestic market. The utility and AEI subsidiary secured a BRL150m 2016 tranche to pay the DI+0.98%, coming in under a 1.12% ceiling. A BRL150m IPCA-linked 2018 tranche pays a fixed 7.68%. Both portions feature a 1-year grace period and amortize in equal parts in the final 3 years. Proceeds are going to repay existing debt and for working capital. Banco do Brasil and HSBC managed the sale, done under the rule 476 restricted format.
EEB Heard Mandating Banks
Colombian utility Empresa de Energia de Bogota (EEB) is heard mandating Deutsche Bank and Santander for an international bond to help fund an upcoming call on its $610m 8.75% 2014s. The NC4 senior unsecured notes were issued in 2007 to partially pay down a bridge loan used to finance the $1.5bn acquisition of natural gas distributor Ecogas. The bonds are callable in October at 104.375, at 102.88 in 2012 and at par in 2013 and after. The bond also carries a make-whole call prior to year four at 75bp and a change of control put at 101.00. EEB bonds were trading Tuesday afternoon at 2.81% on yield-to- worst basis and at a price of 104.35-105.5. ABN AMRO, now RBS, was the sole bookrunner on the last issue with BBVA, Caylon and Mizuho working as joint lead managers.