EM bond funds saw inflows of $505m in the week ended November 11, EPFR Global data shows. The week before the funds saw outflows of only $1m. According to EPFR, were evenly divided between funds investing in hard currency debt and those focused on local currency bonds. Lipper data shows that performance was also positive. EM debt funds were up 1.20% on the week ended November 12 and 31.95% year-to-date. Meanwhile, global income funds were up 0.56% for the week and 15.43% ytd and international income funds gained 0.63% for the week and 12.79% ytd.
Category: Bonds
Posted inDaily Brief
Falabella Prices COP Deal
Chilean retailer Falabella sold COP100bn ($51m) in a 3-tranche bond yesterday, with demand exceeding COP124bn, according to Laura Ramirez, DCM director at Correval, one of the banks managing the sale. The first tranche, due in 2 years, pays a coupon of 1.65% over DTF. The second, due in 3 years pays 2.00% over DTF. The third tranche, due in 2 years, pays a fixed 6.30%.The issue is rated AAA by Fitch and proceeds will go to repay some existing debt and finance capex, adds Ramirez. IMTrust structured the notes, and in addition to Correval, Bancolombia, Corredores Asociados, Interbolsa and Proyectar handled the sale. Separately, Chilean holding company Dersa has raised CLP120bn ($236m) through the sale of a 2.1% stake of Falabella in Chile’s local markets. Dersa, Falabella’s largest shareholder, reduces its ownership in the company to 20.2% with the sale. Demand reached CLP300bn, according to the bolsa, with foreign investors accounting for 45% of the purchase and local pension funds buying 34%. Falabella shares closed at CLP2,496.
Posted inDaily Brief
Marfrig Prints Beefy Follow-On
Brazil’s Marfrig priced late Wednesday an equity follow-on worth BRL1.5bn. The 69.9m share offering was upsized by 15%, or 9.1m units, according to the company’s filing with the CVM. The shares were priced at BRL19.00, a 3% discount to Wednesday’s close of BRL19.60. Marfrig’s board approved the sale September 22, when shares closed at BRL17.94. It rose 9.3% through the final session before pricing. Proceeds are being used to finance Marfrig’s $900m acquisition of Seara Alimentos, which was announced mid-September. The deal was led by Bradesco BBI, with Banco do Brasil, Credit Suisse, Itau BBA and Santander as joint leads.
Posted inDaily Brief
DomRep Gets IDB Storm Loan
The IDB has approved a $100m loan for the Dominican Republic so the country can cover the costs that arise during earthquakes and hurricanes. The IDB says the facility is the first contingent loan for natural disasters that it has approved for LatAm or the Caribbean. In addition to this facility, the IDB has worked with the Dominican government to help it establish a national reserve fund for emergencies and to develop a catastrophic insurance facility. The loan is for a 20-year term, including a 5-year grace period and a Libor-based interest rate. Separately, the IMF this week approved a $1.7bn equivalent 28-month stand-by arrangement for the Dominican Republic to support its strategy to cope with the adverse effects of the global economic environment.
Posted inDaily Brief
Falabella Issuing COP Bonds
Chilean retailer Falabella is selling COP100bn ($51m) in bonds today via its first ever issue in the Colombian market. Laura Ramirez, DCM director at Correval, one of the banks handling the sale, tells LatinFinance that the bonds will be divided into 3 series. One will pay a fixed 6.5% and be due in 2 years, another– also for 2 years – will pay 170bp over DTF, and the third series, due in 3 years, will pay 200bp over DTF. The issue is rated AAA by Fitch and proceeds will go to substitute some existing debt and to finance capex, adds Ramirez. IMTrust structured the notes, and in addition to Correval, Bancolombia, Corredores Asociados, Interbolsa and Proyectar are handling the sale.
Posted inDaily Brief
CAF Lends to Argentine SMEs
CAF has approved a $50m revolving credit line for state owned Banco de la Nacion so the latter can extend credit to small and medium-sized businesses. The facility is payable in 5 years and carries an interest rate pegged to Libor. The multilateral also announced a medium-term $30m loan for oil company Pan American Energy, but has not revealed more information about terms.
Posted inDaily Brief
Brazil, Nicaragua Secure IDB Support
The Brazilian city of Fortaleza is getting a $59.4m IDB loan to finance integrated urban-upgrading for neighborhoods located alongside the main rivers. The loan matures in 25 years and has a grace and disbursement period of 5 years. The loan is denominated in USD and its interest rate is based on Libor. Local counterpart funds for the project total $39.60m. Nicaragua, meanwhile, is getting a $43.50m IDB credit line to improve its road system. The credit line consists of a $21.75m supplemental loan from the bank’s ordinary capital for a 30-year term, including a 5.5-year grace period, at a Libor-based interest rate, and a $21.75m credit from the concessional fund for special operations for a 40-year term, 40 years of grace, and 0.25% interest.
Posted inDaily Brief
BNP Adds To DCM Staff
BNP Paribas has named Surya Bhattacharjee vice president for LatAm DCM, as the bank expands its presence in that market. He was hired from Morgan Stanley’s LatAm DCM team, and will report to Marcelo Delmar, BNP’s LatAm DCM head hired in September from UBS. Bhattacharjee was at Morgan Stanley for 5 years, and also previously worked at Deutsche Bank.
Posted inDaily Brief
IDB Lends to Mexico Labor Market
The IDB has approved a $150m loan to Mexico to support job creation. The loan was requested by Mexico in response to the impact of the international financial crisis and the swine flu health crisis on the country’s economy. The loan has a 25-year term with a 3-year grace period, and its interest rate will be based on Libor. Funds will be disbursed over 3 years.
Posted inMagazine
Best Local Investment Bank Colombia: Taking on the Big Boys
Bancolombia looms large in some of Colombia’s most important markets, including DCM and project finance advisory.