Category: Economy & Policy

Brazilian real estate developer Helbor Empreendimentos said Tuesday it raised BRL150m in 7-year debentures at 106.5% of the CDI rate. Proceeds are for developing and acquiring real estate assets. Bradesco BBI led the offering.

Brazilian real estate developer Rossi Residencial, has sold BRL300m ($162m) in 2014 bonds at 106.6% of the CDI. Bradesco BBI coordinated. This is the first tranche in a program worth $3bn. The debut debentures outing by Rossi follows an IPO last year that raised just over BRL1billion.

Iguatemi Empresa de Shopping Centers, a Brazilian mall company, raised BRL200m ($102.4m) in 2014 local bonds at 104.5% of the CDI interbank rate Wednesday. The deal was met with lukewarm reception and the book was slightly undersubscribed, according to a banker close to the transaction. Proceeds from the offering are being used to build up a war-chest for acquisitions of assets in the Brazilian mall sector. The deal was led by UBS Pactual and Santander Banespa, each of which underwrote BRL80m. Citi took a BRL40m piece, according to Dealogic.

Rising inflation and continuing energy shortages are having an impact on President Nestor Kirchner’s approval rating, according to Buenos Aires pollster Poliarquia. The President’s popularity fell from 57% in May to 52% in June as a wave of cold weather, energy shortages and rising consumer prices have dented his image. President Kirchner or his wife, senator Cristina Fernandez de Kirchner, are likely to run in the presidential elections later this year.

Mexican Sofol Su Casita is preparing to price MXP900m ($83m) worth of 5-year local bonds June 29. Guidance on the notes is 130bp-150bp over 28-day TIIE. The offer is the second of its kind from a MXP6bn program, the first of which, also for MXP900m, came in May. IXE and Santander are leading.

GMAC Financiera and GMAC Hipotecária, the Mexican subsidiaries of Rescap, together issued MXP1.8bn in 5-year senior guaranteed bonds yesterday, at TIIE+75bp. On Thursday, TIIE was trading around 7.70%, but the exact yield for the notes will only be next week when the bonds settle. Guidance was 70bp-80bp. MXP1.4bn will go to GMAC Financiera and MXP400m to the Hipotecária. The notes are rated AA and AA+ by S&P and Fitch on a local scale. Credit Suisse was the bookrunner.

Mexico’s Banorte priced Wednesday MXP1.975bn ($181m) worth of 2017 certificados at TIIE minus 5bp to yield 7.65%. The notes, rated Baa1 on a local scale by Moody’s, are backed by four bonds: 6.375% guaranteed Pemex PFMT notes (Baa1) due 2016; 3.875% Euro Bancomext MTNs (A1) due 2009; 9.625% Monterrey Power senior secured bonds (Baa1) due 2009; and 5.625% United Mexican States global notes (Baa1) due 2017. Proceeds are for general corporate purposes.

Honduras-based multilateral Cabei has extended its peso notes curve with a tightly priced MXP1.5bn 7-year registered in Mexico. Demand was MXP2.6bn and it priced 10bp through 91-day TIIE, in line with expectations. Mutual funds, insurance companies and small brokers were the buyers. The 5-year, issued earlier this year, was marked around 20bp through in marginal trade, according to a banker on the deal. “We have established a name in the market as a regular borrower,” Nick Rischbieth, Cabei vice president, tells LatinFinance. “There’s still demand that was unsatisfied that we could probably return to.” The deal through Citi is from Cabei’s global debt program and rated Triple A locally. Cabei has issued twice this year in a similar format and plans to swap proceeds to dollars. Banamex is the lead. The underwriter is apparently looking to bring other issuers to this market in the same format. Cabei’s next issue is expected to be in an Asian currency.

Honduras-based multilateral Cabei is planning to issue Wednesday a MXP1.5bn 7-year Mexico-registered issue. The 144a deal through Citi is rated Triple A locally. It will price over 91-day TIIE. Cabei has issued twice this year in a similar format and plans to swap proceeds to dollars. Banamex is the lead. The deal is from Cabei’s $750m medium-term notes program.

Mexico’s Hipotecaria Crédito y Casa, a mortgage writer, has a MXP1.4bn offering of certificados bursatiles. The MXP1.2bn AAA-rated 7.2-year tranche came at 100bp over the 28-day TIIE. The note has an average life of 6.6 years, and was priced the wide end of the 90bp-100bp talk. The subordinated A+ rated 7.7-year tranche B, worth MXP177m, was priced at 200bp over the TIIE, also at the wide end of guidance. Proceeds will be used to originate construction bridge loans. Barclays and Santander led.