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.
Category: Equity
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.
Quinenco Approves Capital Raise
Shareholders in Chilean conglomerate Quinenco approved Monday a CLP350bn ($684.6m) capital increase, to take place in the next three years. The form of the increase is to be determined, LatinFinance understands. Quinenco holds stakes in Banco de Chile and drinks maker CCU. The firm tapped the local market last week, raising UF4m ($182m) across a dual tranche 8- and 21-year issue. The company reported assets of CLP26.7tr and shareholders’ equity of 1.9tr at the end of the first quarter.
Security Completes Equity Offering, Advances Bond Plans
Grupo Security has completed a CLP57.27bn ($113m) equity rights offering, and now turns its sights to issuing up to UF3m ($136m) in the domestic bond market. The Chilean financial conglomerate is looking at an August sale, and will choose among four series with maturities up to 25 years, according to people following the process, with 5, 10 or 20-year maturities likely to emerge as options. Grupo Security should favor longer terms, LatinFinance understands. Proceeds from the bond sale will be used to help fund the UF6.2m-plus acquisition of Cruz del Sur agreed in March. Grupo Security through the acquisition picked up a portfolio of insurance, investment and brokerage businesses operating under the Cruz del Sur Brand from Grupo Angelini. It is also using proceeds from the equity capital raise. The group sold 301m shares at CLP190 each, it says. Holders had a right to 0.25 new shares per share held. IMTrust and BCI led the transaction.
Banco de Bogota to Boost Equity
Banco de Bogota is to receive $500m in equity to support the recent purchase of BBVA’s Panamanian operations, parent Grupo Aval says. The holdco was not specific about the nature of the increase, or if it might involve a public sale, and an investor relations official declines to comment on the matter. Aval’s $646m purchase of BBVA Panama was announced last week and followed a $411m deal for Guatemala’s Grupo Financiero Reformador. Aval has registered for an equity follow-on representing the debut of its US ADS, and hired JPMorgan, Goldman Sachs, Citi and Morgan Stanley. The transaction is expected to raise as much as $1bn and price as soon as the September-October window.
Commercial Developer Unveils Fibra
Mexican developer Grupo Danhos is preparing a Fibra real estate fund focused on commercial property, according to regulatory documents. The size and timing have yet to be determined, though an IPO filing now likely targets the September-October pricing window. The transaction plans both Mexican and international tranches. The fund begins with four shopping centers, four office buildings and three mixed-use properties, all in Mexico City, and is seeking funds to expand them and to add to the portfolio. BBVA and Goldman Sachs are global coordinators on the transaction, with Evercore as structurer and domestic bookrunner. It would be the market’s seventh Fibra, and follow the $437m-equivalent IPO of Tuesday of Fibra Shop, another shopping center-focused Fibra. Fibra Shop’s pricing at the bottom of the range has some observers asking if the buyside is in danger of tiring of the new asset class. “At some point, we still don’t know when, the market will say too much,” says an ECM banker, likening the Fibras to the wave of Brazilian homebuilders that held IPOs in 2006-2007.
Grana y Montero Upsizes ADS Sale
Peru’s Grana y Montero elected to upsize its equity follow-on, and should raise $474m, according to regulatory documents. The transaction representing the IPO of the Peruvian construction company’s ADS drew multiple times demand, according to people familiar with the terms. In addition to US and European buyers making up the bulk of the sale, Brazilian and Chilean institutions participated, as well as Peruvian pensions. The deal was increased to 19.5m ADS from 16.3m ADS, and the ADS priced at $21.13 each, near the middle of the $19.70-$23.30 price range. The $413m base deal means a total of $474m assuming a 15% greenshoe is exercised. The ADS represent 98m common shares, with the PES11.75 ($4.23) per-share equivalent price representing a 4.1% discount to the previous PES12.25 close. Shares closed Wednesday at PES11.87. The deal benefitted from the overall scarcity of Peruvian equity opportunities, and was the country’s first transaction since InRetail’s $460m IPO in October 2012. Grana y Montero plans to use about 60% of the proceeds for infrastructure projects, 20% for acquisitions, 10% to buy land for its real estate business and 10% for general corporate purposes. BTG Pactual, Credit Suisse, JPMorgan and Morgan Stanley managed the sale, with BBVA, Credicorp and Interbank as co-managers. The sale leaves Grupo Aval, Azul, and Volaris as the LatAm equity deals in the pipeline with SEC registration, as well as Votorantim Cimentos, if that transaction is revived. “You are starting to see more LatAm companies consider the US capital markets,” Alex Ibrahim, head of LatAm at the NYSE, tells LatinFinance. The US JOBS act provisions for foreign companies have helped, he says, as companies are lured by additional pockets of liquidity from US institutions too small to participate in foreign sales directly. Five ECM transactions have had SEC registration this year, according to Dealogic data, following seven last year and 10 in 2011.
IFC Invests in CCDs
The IFC has invested $50m in a Credit Suisse-run certificado de capital de desarrollo (CCD) fund of funds, the multilateral says. The CS fund was established last year to buy CCDs, Mexican equity certificate offering institutions access to private equity, and has now reached almost $550m in size. The investment follows the IFC participation last week in the IPO of Brazil’s CPFL Energias Renovaveis, buying BRL150m ($68m) of the renewable energy generation developers BRL1.04bn transaction.