Fund performance continues to fall amid market volatility and international uncertainty, with LatAm equity funds falling 8.09% during the week ended June 20, according to Lipper. They are down 17.46% year-to-date. EM funds were down 4.62% during the week, to bring them to a year-to-date loss of 9.81%. Global small and mid-cap funds were down 2.80% on the week, and have earned 7.04% year-to-date. EM dedicated bond funds as an asset class was down 2.98% during the week ended June 20, for a year-to-date loss of 7.35%. Global income funds were down 1.89% during the week, and are down 3.55% year-to-date. International income funds were down 2.30% during the week, for a 5.05% loss year-to-date.
Category: Equity
Posted inDaily Brief
Nexxus Close to CCD
Mexican private equity manager Nexxus Capital is targeting the close of a MXP2.5bn-MXP3.0bn ($187m-$224m) certificado de capital de desarrollo (CCD) transaction in Mexico’s local market within the next few weeks, according to a person familiar with the plans. The 10-year fund created in the transaction would invest in a broad range of Mexican companies. It plans a return structure similar to other CCDs, with investors getting their money back plus a preferred return, and then returns divided 80% to investors and 20% to Nexxus. Banamex and Santander are managing, the transaction, to be Nexxus’ second CCD.
Posted inDaily Brief
OHL Prices Follow-on Against Rough Backdrop
OHL Mexico has priced a MXP6.99bn ($524m) equity follow-on, landing at a slight discount to a share price that had been hit hard in the last few days along with the rest of the Bolsa. The Mexican unit of the Spanish concession operator is selling 241.2m primary shares, assuming a 15% greenshoe, at MXP29.00 each, according to a person following the sale. The price compared to Thursday’s MXP29.84 closing price. The shares had fallen 13.5% what in June, versus a 9.8% drop in the Mexican Bolsa during that time. About 55% of the sale went to international buyers. “This is a quality portfolio of assets, and there is still much opportunity in Mexico in the infrastructure space,” says an analyst following OHL Mexico. Expectations are a bit more cautious than earlier in the year, he says, but the global volatility has not yet done much damage Mexico’s positive growth outlook. The transaction was expected to represent about 13.9% of the unit and result in a 36% free-float. The issuer plans to use about half of the proceeds to make investments in projects and half to repay debt. BBVA and UBS were global coordinators, joined by Goldman Sachs and JPMorgan on the international portion and Santander on the local side. The deal should give some confidence to the other follow-ons in the region’s new issue pipeline. Next up is the MXP11.0bn Inbursa follow-on sale of secondary shares owned by CaixaBank, the MXP4.0bn OMA sale of secondary shares owned by ICA and a MXP4.4bn follow-on from Vesta. All three are scheduled for Tuesday.
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Peruvian Lender Gets IFC Funds, Plans Bond
The IFC has made a $50m equity investment in BanBif, which the Peruvian commercial bank hopes to follow with an international bond this year, it says. BanBif would like to raise $200m in the cross-border bond market in the second half of the year, in addition to domestic market debt. The IFC’s investment makes the multilateral a 12.66% shareholder in BanBif, and will help BanBif serve small and medium enterprises. It follows a $18m 10-year subordinated loan to BanBif. In 2009, the bank also received a 2020, $30m loan from the IMF and FMO. BanBif notes that it has received more than $300m in medium and long term loans from various groups such as CAF, the IFC, FMO, the IDB, Bladex and Cofide as it continues to grow. BanBif currently has 32,000 SME clients in Peru and a loan portfolio of about $560m.
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CCU Approves Equity Raise
Compania Cervecerias Unidas (CCU) has approved a CLP340bn ($680m) equity capital raise, it says, to help fund expansion plans. It plans to issue 51m shares and does not indicate details for timing. The new funds are an important move for the Chilean beverage company, say people familiar with its plans, and will allow it to finance growth, including increasing production. CCU plans to invest CLP1.35bn through 2020, and is also preparing to tap the domestic bond markets. In April, CCU registered up to UF10m ($454m) in domestic bonds, a shelf to be used in the event of non-organic growth needs, according to a person familiar with the registration. The brewer has a UF2m 10-year line, a UF5m 10-year line, and a UF10m 30-year line, which can be used in combination but cannot exceed UF10m total.
Posted inDaily Brief
Developers Prepare Mall Fibra
A trio of real estate developers is aiming to give Mexico its first shopping center-based Fibra, to be known as Fibra Shop. The real estate fund is targeting about MXP7.4bn ($561m), according to initial regulatory documents, in a pricing as soon as July. Specifics on the size and timing remain to be determined. Developers Grupo Cayon, Grupo Aportante Frel and Grupo Central de Arquitectura are placing eight shopping centers in five Mexican states into the portfolio, and raising proceeds to acquire more. Actinver, Bank of America Merrill Lynch, Banorte-Ixe and BTG Pactual are managing.
Posted inDaily Brief
Eike Pulls CCX Delist
Eike Batista has put off plans to buy up the shares of his CCX Colombian coal mining unit and delist it, CCX says. After twice delaying the date of the auction, in which investors could swap CCX shares for shares of Batista’s other companies in a deal totaling up to BRL281m ($127m), the billionaire has determined that market conditions do not support the repurchase. The offer valued CCX at BRL4.31 per share. The shares closed at BRL1.28 Wednesday. The change follows falling prices at many of the EBX family entities, with the group announcing it had restructured debts last week.
Posted inDaily Brief
OHL Set for FO
OHL Mexico is scheduled to price today an equity follow-on targeting more than $500m. The transaction was heard to be still on track as of late Wednesday afternoon, with books nearly covered. A successful pricing would encourage the markets following Tuesday’s pulling of the $3.7bn Votorantim Cimentos IPO. The Mexican unit of Spanish concession and infrastructure specialist OHL is selling 241.2m primary shares, if a 15% greenshoe is included, suggesting a MXP7.48bn ($567m) deal if done at Wednesday’s MXP31.03 closing price. The shares fell 7.1% in Wednesday’s session. The transaction should represent about 13.9% of the unit and result in a 36% free-float. The issuer plans to use about half of the proceeds to make investments in projects and half to repay debt. BBVA and UBS are global coordinators, joined by Goldman Sachs and JPMorgan on the international portion and Santander on the local side. The issuer raised $900m-equivalent in a 2010 IPO.
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Partners Apply for Bovespa Alternative
NYSE Euronext and Americas Trading Group (ATG) have applied for Brazilian regulatory approval to open a new stock exchange, ATG says. American Trading Systems Brasil would be able to begin trading as soon as next year if approved. The pair aim to bring down transaction costs, boost liquidity in trading of stocks and lure more investors into Brazil by providing competition to the BM&FBovespa. American Trading Systems Brasil is 80% owned by ATG and 20% by NYSE. ATG did not indicate whether its planned venture includes a new clearing house, as BM&FBovespa would not be required to share its clearing services.
Posted inDaily Brief
CCX Again Delays Share Buyback
Eike Batista has pushed back the auction to repurchase shares in the CCX coal mining unit, to July 31 from July 12, CCX says. The company had delayed previously, from a June target. The Brazilian billionaire is preparing to delist CCX through the operation, which could reach BRL281m ($129m). He is offering shares of the other publicly-traded EBX companies – OGX, LLX, MMX MPX and OSX – in an exchange valuing the CCX shares at BRL4.31 each. The shares closed at BRL1.40 Tuesday. The company says there are 65m CCX shares in the public float.