Category: Economy & Policy

Mexican bottler Embotelladoras Arca has sold MXP2.5bn in domestic fixed and floating-rate bonds. A MXP2.1bn 5-year tranche pays TIIE plus 95bp, while a MXP400m 7-year piece pays a fixed 9.5%, or Mbonos plus 180bp. Proceeds from the sale, rated AA on a national scale, are marked for refinancing debt. In June, the bottler sold MXP1.5bn in domestic bonds, including MXP1.0bn in 2012 notes at TIIE plus 100bp, and MXP500m in 2016s at a fixed 9.75% rate.

Colombian financial holding Grupo Aval has sold COP750bn ($373m) in 5 tranches. A 3-year tranche pays 114bp over DTF, a 5-year pays 369bp over IPC, a 7-year pays 449bp over IPC, a 10-year tranche pays 484bp over IPC and a 15-year pays 520bp over IPC, says DCM banker Natalia Gomez of Corficolombiana, which structured and managed the issue. She adds that total demand was COP1.7trn.

Telmex International has sold MXP5bn in domestic bonds, its second issue of the year. The entity spun off last year from Mexico’s Telmex will pay interest at the 28-day TIIE plus 150bp on the 5-year bonds. Proceeds are marked for general corporate purposes, including repaying debt. Inbursa and Banamex managed the sale, rated AA on a national scale. Telmex International paid 28-day TIIE plus 135bp on MXP5bn in 2012 bonds at the beginning of September. In late October, the AAA rated Telmex parent paid TIIE plus 95bp for 5-year paper.

Mexican state-backed lender Fonacot has placed MXP1.5bn in domestic bonds backed by its consumer loans. The 2012 notes pay TIIE plus 82bp, according to regulatory filings. Proceeds from the securitization of 235,000 consumer loans will go toward strengthening Fonacot’s ability to make new loans. Scotia managed the sale, rated AAA on a national scale. It is the fourth issue from a MXP7.65bn shelf.

Telmex has sold MXP6bn in domestic floating-rate bonds, including MXP4bn in 2014 bonds at TIIE plus 95bp and MXP2bn in 2016 bonds at TIIE plus 125bp. Proceeds will help refinance a 4.75% coupon $950m dollar bond due next year, and cover general corporate purposes. In July, Telmex sold MXP8bn in 2011 bonds at TIIE plus 74bp and 2013s at TIIE plus 95bp. Inbursa and Banamex managed the sale, rated AAA on a national scale.

GE Capital’s Mexican unit has sold MXP2bn in floating-rate notes on the domestic market, apparently its first long-term bond in Mexico. The 2012 notes pay TIIE plus 110bp. Proceeds will be used to make new loans. Banamex managed the sale, rated AAA on a national scale. The issuer has been placing commercial paper in Mexico for 2 years and GE Capital issued a 2014 MXP700m Europeso bond in 2005.

Daimler’s Mexican unit has priced MXP1bn in 2011 bonds on the domestic market. The floating-rate notes pay interest at the TIIE rate plus 185bp. Proceeds will go to working capital and investments. Santander and Scotia managed the sale, rated AAA on a national scale.

Mexican chemicals maker Mexichem has sold MXP2.5bn in 2014 bonds on the domestic market. The floating-rate notes pay TIIE plus 244bp. Inbursa and Arka managed the sale, rated AA minus on a national scale. Mexichem plans to use proceeds to refinance shorter-term debt. The issuer, rated BBB minus internationally, has said it plans to follow up the domestic issue with dollar bond, likely in the $300m size area at 7-10 years maturity.

Mexico’s government has raised MXP32bn on behalf of its states in a securitization backed by the FEIEF oil stabilization fund. The 13-year transaction is issued through a trust backed by the states and priced at TIIE plus 181bp. It was placed privately with 12 Mexican commercial banks, according to local press and wire reports citing finance minister Agustin Carstens. The transaction uses resources from the fund to purchase a zero-coupon government bond guaranteeing principal, according to government officials. It could be amortized earlier than 13 years if enough money is accumulated in the fund.

Mexico’s Grupo Famsa has sold MXP1bn in floating rate bonds domestically. The 2012 notes will pay interest at the TIIE plus 250bp. The total book size reached about MXP1.5bn, according to a banker on the sale. The transaction, which counts on a guarantee from Nacional Financiera is rated A on a national scale. The retailer will use proceeds for working capital. Ixe led.