A group of Mexican investors is planning to raise up to MXP7bn ($544m) in a certificado de capital de desarrollo (CCD) fund targeting investment in the country’s energy and infrastructure space, according to regulatory documents. Mexico Infrastructure Partners, a recently created entity headed by former government energy official Mario Budebo, plans a 12-year fund raising MXP1.4bn at first and reaching up to MXP7bn through capital calls. The CCD fund, along with a parallel private equity fund, plans to invest in greenfield and brownfield energy projects, including renewable and non-renewable, as well as infrastructure projects. The fund, known as Fomento a la Energia e Infraestructura de Mexico, has a 5-year investment period. Investors should receive their initial investment plus a 9% preferred return, with remaining proceeds split 80%-20% between investors and the manager. Santander is managing the transaction, for which timing is unclear.
Category: Equity
Avianca Adds to Airline Equity Pipeline
Avianca-Taca is considering an equity follow-on, according to people familiar with the plan. Citi, JPMorgan, Bank of America Merrill Lynch and UBS are heard mandated for the transaction. If it moves forward, the Colombian would join other airlines planning to raise funds in the equity markets. Latam Airlines is preparing a follow-on, Mexico’s Volaris has filed for an IPO including an SEC-registered tranche, and Brazil’s Azul has also registered for an IPO. Both are also expected to try to price before the end of the year, if market conditions permit. An investor relations official at Avianca declines to comment, nothing that nothing official has been announced.
CFR Moves Closer to Share Sale
Chile’s CFR Pharmaceuticals has registered the sale of 3bn shares, working under a $750m-equivalent capital raise authorization. The sale of 3bn shares would fetch CLP333bn ($651m) at Tuesday’s CLP111.00 closing price. The pharmaceuticals specialist is raising funds to help fund a $1.3bn offer it has made for South Africa’s Adcock Ingram. The offer was approved by CFR shareholders this month, and awaits the response from Adcock’s.
GBM Set to Close Debt CCD
Grupo Bursatil Mexicano (GBM) is scheduled to close books today on a certificado de desarollo de capital (CCD) fund that may raise as much as MXP2.0bn ($157m), according to regulatory documents. The 5-year fund is to focus on making investments in debt assets, and expects a return of 6%-8%. The fund is the group’s second CCD, following a 10-year infrastructure investment-focused fund launched last year with MXP750m and expected to eventually reach MXP3.75bn. This year’s CCD is to be pre-funded, as opposed to last year’s, which is reaching its target via capital calls. GBM is managing the placement of the CCDs.
Voto Withdraws Cimentos IPO Registration
Brazil’s Votorantim Cimentos has officially requested the cancellation of its IPO registration in the US and Brazil, according to regulatory documents. The industrial conglomerate blames market conditions that make such a sale unlikely in the short term. An IPO remains in the issuer’s medium to long-term plans, ECM bankers say. The cancellation follows the postponement of the transaction days before the scheduled pricing in June. The cement maker was targeting more than BRL8.0bn ($3.49bn) in the sale of 286m primary units and 114m secondary units at BRL16.00-BRL19.00 each. Concern about the US Fed winding down monetary stimulus shook the markets beginning in May, making life difficult for equity issuers, particularly IPOs. BTG Pactual, Credit Suisse, Itau, JPMorgan and Morgan Stanley were the global coordinators on the transaction, with Banco do Brasil, Banco Votorantim, Bank of America Merrill Lynch, Deutsche Bank, Goldman Sachs and HSBC as bookrunners.
Brazilian Preps Local Hybrids
Viver Incorporadora is preparing to raise BRL125m ($55m) from the private placement of convertible debentures, according to regulatory documents. The builder’s 2016 domestic bond is to pay the DI+2.0% and covert to shares anytime at the holder’s discretion, at a rate of BRL0.25 per share. Viver shares closed at BRL0.24 Tuesday. The deal is open to existing shareholders, with a public sale possible if there are debentures remaining, according to a person familiar with the transaction. The private placement process does not involve any intermediary. The issuer is raising funds for working capital. Viver is rated B1/BB minus on a national scale, Fitch and Moody’s each lowering ratings this year based on execution risk and weak liquidity.
IFC Invests in Colombian Oil Project
The IFC has agreed to make a $150m equity investment in a Colombian oil pipeline and terminal project partially sponsored by Pacific Rubiales. The multilateral will invest $56.3m, and two funds, the IFC African Latin American and Caribbean Fund and the IFC Global Infrastructure Fund, will invest $37.5m and 56.3m, respectively in the project, the IFC says. Pacific Infrastructure Ventures, a special purpose vehicle largely held by Pacific Rubiales Group and Blue Pacific Assets, will use the investment to build the Sociedad Portuaria Puerto Bahia import-export terminal and Oleoducto del Caribe-Olecar crude oil pipeline. Blue Pacific Assets is a group of Colombia-based investors with interests in the oil and gas and other infrastructure. Pacific Infrastructure Ventures was advised by Inverlink on the deal. The port is scheduled to start operation in 3Q 2014 and the pipeline 4Q 2014. The transaction represents the IFC’s largest equity investment in a greenfield infrastructure project to date.
Carozzi Eyes Equity
Chile’s Carozzi is planning to raise CLP37.50bn ($73m) in fresh equity capital, it says. The food and agricultural products company plans to offer existing holders 28.8m shares at CLP1,300 each. It does not indicate the timing of the rights offering. Carozzi was also due to start marketing this month a domestic bond transaction of up to UF3m ($137m), likely including 2018, 2020, or 2034 bonds.
Brazilian Preps Industrial FII
Brazilian asset manager TRX Gestora de Recursos is preparing a BRL138m ($61m) industrial real estate focused fundo de investimento imobiliario (FII) transaction. The TRX Desenvolvimento Modular fund begins with an industrial property in Sao Paulo State, according to a prospectus, and may acquire others. The timing remains to be determined. XP Investimentos is managing the sale.
Molymet Seeks Equity
Chilean metals processor Molymet is looking to raise $100m in new equity, it says. It does not indicate the use of proceeds for the rights offering, which is to be approved by shareholders August 28. Molymet has also registered to sell bonds in Colombia, after raising $157m-equivalent in Mexico’s bond market earlier this year.