São Paulo-based highway maintenance company Autoban has been granted approval by Brazil’s securities market regulator, CVM, to issue $233 million of local debt securities. Autoban is planning to issue three series of debentures, the first maturing 2014 with an interest rate of IGP-M plus 10.65%, the second maturing 2013 and carrying the same interest rate and the third maturing 2012 and with an interest rate of 3.3% above the interbank CDI rate.
Category: Bonds
Posted inDaily Brief
Ferrocarriles Suburbanos Gets Loan On Track
Ferrocarriles Suburbanos, a subsidiary of CAF Mexico, part of Spain’s Construccion y Auxiliar de Ferrocarriles (CAF), has succeeded in raising new financing to complete the first stretch of its Mexico City suburban train project. The company has closed a $271 million syndicated loan led by Banesto, Santander and Banobras. The total cost of the project is estimated to come in at $613 million.
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Banco Hipotecario To Buy Back Bonds In Default
Argentine Banco Hipotecario has made a tender offer to buy back 10 of its Series Notes of US dollar and euro-denominated debt that remained unrestructured after its debt swap program of two years ago. The Bank will pay 108% of the principal amount of the notes tendered but will not pay any additional accrued but unpaid interest or past due interest on the notes. The tender offer expires on July 31. Citigroup Global Markets is acting as the dealer manager for the offer.
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Colombia To Buy Back Local Paper
Colombia is to buy back up to $950 million worth of local-currency debt within the next 90 days. The move aims to reverse what the government describes as “inefficiencies in [the local] bond curve”. Colombia has increased the proportion of its peso-denominated debt to foreign-currency debt this year to protect against exchange rate fluctuations.
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CAF Approves $850 Mln in Loans to Venezuela
The Andean Finance Corporation (CAF) gave the go ahead to three loans to Venezuela totaling $850 million to finance housing and transportation programs and underwrite a $50 million bond offering from Electricidad de Caracas, a private utility. CAF also agreed to lend $60 million to Empresas Publicas de Medellin, which runs public services in the Colombian city of the same name.
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CVRD To Buy Back Shares
Brazilian Companhia Vale do Rio Doce (CVRD), the world’s largest iron-ore producer, is to buy back 47.9 million of its preferred shares, representing about 5% of its stock in circulation. CVRD said its decision to launch the buyback program was prompted by the recent share price performance and difference between its common and preferred share prices. Meanwhile, the company managed to stare down Chinese steelmakers to agree a 19% price increase for iron ore following tough negotiations.
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Brazilian Government to Buy Back More Bonds
The Brazilian government plans to buy back foreign currency bonds it considers the market is valuing too cheaply. Treasury officials are eyeing bonds maturing in 2020 and 2030 because yields on these issues are higher than other outstanding debt, distorting the sovereign yield curve.
Posted inDaily Brief
Submarino To Buy Back Shares
Brazilian internet retailer Submarino is to buy back up to 10% of its stock, comprising around 5.13 million shares. The shares closed the day Tuesday at $15.36. The buyback is being coordinated by Credit Suisse, Banco Santander, Banco Itaú and Banco Pactual.
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CAF Keeps Them Coming
Andean Development Corporation (CAF), the Caracas-based regional multilateral financial institution, is to follow up its landmark local-currency issue in Peru last month with an offering in Venezuelan bolivares. The Corporation is looking to place $100 million worth of local-currency bonds in Venezuela on June 13. The bolivar-denominated debt would be the first such paper to be issued by a multilateral in Venezuela. The five-year floating-rate bonds are expected to yield around 7%. Last month CAF successfully placed $75 million worth of 12-year local-currency bonds in Peru, the Corporation’s first bond issue in new soles and the largest such offering by a non-government issuer in the local market.
Posted inDaily Brief
Panama To Buy Back Bradies
Panama is to buy back all its outstanding Brady bonds next month, taking advantage of a call option on July 17. The $352 million bonds in circulation comprise four series. Panama is following a now, well-trodden path in the region to improve its debt profile. Earlier this year Brazil announced its multi-billion dollar Brady buyback plan; Venezuela was due to buy back $3.9 billion of Bradies by the end of last month and Colombia announced it would spend $4.3 billion on repurchasing the paper this year.