Category: Economy & Policy

Aeropuertos Argentina has raised $42m from a domestic bond sale. The airport operator sold $7m in 2013 bonds at Badlar plus 3.85bp, $29m in 11% of 2020 bonds and $6m in 10% bonds from a separate 2020 series. Proceeds from the sale will refinance $22m in bank loans and fund about $128m worth of capex, according to Moody’s. Banco Macro is managing the sale, rated Aa2 on a national scale.

Mexico’s CFE has raised MXP5bn through the sale of 7 and 10-year domestic bonds. The state-owned utility priced MXP2.6bn in 2017 floaters paying the TIIE benchmark plus 52bp. It also did MXP2.4bn in 2020 fixed-rate notes paying 8.05%, or Mbonos plus 120bp. Both priced at the tight end of guidance of TIIE plus 50-60bp, and Mbonos plus 120-130bp, respectively, according to a banker on the trade. Total demand was about MXP8.6bn, the banker says. Banamex and Santander managed the sale, rated AAA on a national scale. CFE is also readying a MXP500m 3.5-year floating rate transaction through Ixe, expected in early April. Mexican DCM this year has been characterized by high volume with little issuer variety. CFE follows jumbo issuance from Pemex and America Movil.

Mexican restaurant operator Alsea has sold MXP400m in 3-year local bonds paying 175bp over TIIE, according to a banker on the deal. He adds that demand was 1.4x the issued amount. Proceeds of the AA issue will go to refinance debt. HSBC managed the sale.

Mexican financial group Grupo Elektra plans to sell MXP1bn in domestic 1-year bonds, basis TIIE. Elektra paid TIIE plus 190bp on a similar MXP1bn 1-year deal in July. Inbursa is managing the sale. Elektra is rated A on a national scale and controlled by billionaire Ricardo Salinas. It acts as a holdco for subsidiaries including Banco Azteca, Seguros Azteca and Afore Azteca.

Argentina’s YPF has sold $107m-equivalent in dollar and peso bonds on the domestic market. The oil producer’s ARP143m ($37.1m) in 2011 bonds pay Badlar plus 2%, while $70m in 2013 dollar bonds pay a fixed rate of 4%. BBVA Banco Frances, Banco de Santa Fe, and Santander Rio managed the sale, rated AAA on a national scale.

The board of Brazilian health insurer Amil Participacoes has authorized a BRL300m 1-year debenture issue. The notes will pay 109.75% of the CDI rate. Proceeds will be used to rebuild its cash position following the acquisition of a 51.9% in local peer Medial Saude for BRL612.5m in cash in November. Itau BBA and HSBC are managing the sale.

Holicm’s Mexican unit Holcim Apasco priced just before the holidays a MXP950m trade receivables securitization. The 2013 notes pay TIIE plus 170bp, and were 1.2x subscribed, according to a banker on the sale. Proceeds are marked for repaying debt and general purposes. HSBC managed the sale, rated AAA on a national scale. The trade was the first from a MXP2bn program.

Banamex has sold MXP5bn in 2-year bonds in Mexico’s domestic market. The floating-rate notes pay the TIIE rate, and are the first issuance under a MXP50bn 10-year shelf. Proceeds are marked for improving liquidity and funding growth of operations. Banamex’s own capital markets unit managed the sale, rated AAA on a national scale.

The Mexican state of Chihuahua has sold MXP1.3bn in ABS backed by highway tolls. The 2022 floating-rate issue pays the TIIE plus 290bp. It is the second from a MXP5.5bn shelf and follows the MXP4.2bn issue from November, which also pays TIIE plus 290bp. Value and Inbursa managed the sale, rated AA+ on a national scale and expected by the end of the year. Proceeds are marked for various public work projects, according to regulatory documents.

Gas Natural Ban (GNB), the Argentine unit of Spain’s Gas Natural Group, has sold ARP100m in 2011 bonds on the local market. The 18-month notes pay Badlar plus 360bp. HSBC and Santander Rio managed the sale. Moody’s rates the notes A1 on a national scale, noting Gas Natural is the only Argentine gas company that has been allowed to increase tariffs since 2002. Meanwhile, static rates have plagued its competitors’ balance sheets, resulting in defaults and restructurings.