Banco Compartamos plans to ask its shareholders to approve a MXP700m share buyback fund. The Mexican microfinance bank’s shareholders will vote August 26 on transfer of retained earnings to a special buyback fund, to be used without a time limit. The program would help “maintain a market for the company’s shares,” it says.
Category: Topics
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Orica Raises Peru Mining Stakes
Melbourne-based conglomerate Orica has purchased the 48.6% it did not own of its Peruvian mining joint venture Samex from its partner Enaex for $58.2m. Completion of the acquisition is expected by the end of October, Orica says.
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Ultrapar Bags Texaco’s Brazil Operations
Ultrapar is buying Texaco’s Brazilian fuel marketing business from Chevron for BRL1.16bn. The transaction is to be paid with Ultrapar’s own cashflow, the company says. The acquisition comprises of approximately 2,000 service stations and 48 distribution terminals, Ultrapar says. The purchase will allow Ultrapar’s gas station network Ipiranga to get national coverage, the company says. Ipiranga’s and Texaco’s operations will create a network of 5,000 service stations, comprising 23% of the Brazilian market, Ultrapar says. Merrill Lynch advised the Brazilian company on the purchase, a company spokeswoman says. In June, Ultrapar acquired 100% of port terminal operator Uniao Terminais for BRL482.7m. Freshfields was the legal advisor to Ultrapar on Texaco.
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Pinfra Holds Jumbo MXP Road ABS
Mexican infrastructure operator Pinfra has delayed a MXP6.5bn securitization to refinance debt tied to the Mexico-Toluca (Mextol) toll road concession which had been set to price today. “It has been postponed, but the structure hasn’t changed, it’s still in the market,” Pinfra CFO Carlos Cesarman tells LatinFinance. He adds that the delay was caused by regulatory issues remaining to be straightened out, rather than external problems or choppy market conditions. ING is managing the transaction, which coincides with widespread volatility that has made investors much more selective and vigorous in their credit work. In addition, Banxico meets Friday, and analysts expect another 25bp hike. Local investors are still cash rich but they want higher returns to cover the uptick in risk, particularly for structured products, where “back to basics” is the mantra. Borrowers generally have been unwilling to concede sufficient spread. Pinfra had planned to sell around MXP6.5bn equivalent in 2030 bonds denominated in the UDI inflation-linked unit to replace some MXP5.57bn in UDI bonds issued in 2006. Funds remaining after the repurchase can be used for additional construction.
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Lehman Warms to Argentina Warrants
Despite a generally bearish view on Argentina, Lehman sees value in sovereign GDP warrants, especially when hedged with CDS. “If Argentina does not default, the warrants offer significant upside in the long term,” says the shop. Lehman’s models show the USD and EUR warrants having theoretical values of $16.85 and $14.50, respectively, while they trade in the market at discounts of nearly 50%. “These estimations already take into account the bearish sentiment by discounting expected coupons by current CDS levels plus an additional 250bp to account for a lower recovery rate and higher risk premium on the warrant,” says the shop. On the USD warrants, Lehman expects total payments through December 2010 of $8.94, and $8 for 2011 to 2035. It sees best value in EUR warrants, saying that they are 3.6% cheap to the USD warrants, whereas they normally trade 1% rich.
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Metrofinanciera Tees Up RMBS Against Odds
Mexico’s Metrofinanciera is planning to issue MBS worth approximately MXP2.3bn, despite choppy markets, competing large issues and financial troubles that drag its rating ever closer to implied high default probability levels. Metrofinanciera has filed to issue MXP1.6bn equivalent in 2033 notes denominated in the UDI inflation-linked unit and MXP769m in MXP-denominated 2038 notes. Each will be further divided into two pieces which amortize one after the other. The transaction backed by a pool of Metrofinanciera credits is rated AAA on a national scale by all three agencies and will be managed by Deutsche Bank. Metrofinanciera has not set a date for the sale, but CFO Nicolas Palacios tells LatinFinance it should come in September or early October, at an expected spread of 40p wider than its April issue of MXP750m in 2038 RMBS, which came at TIIE plus 250bp. S&P Wednesday chopped Metrofinanciera’s counterparty credit rating to B from B+, BBB minus from BBB on a national scale, amid concerns about a deteriorating funding profile and limited liquidity. The issuer faces a rocky RMBS market in which competitors HSBC, Infonavit and Su Casita are all preparing sales north of MXP2bn each for August and September.
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Marfrig Readies Private Share Feast
Brazilian meat processor Marfrig plans to raise BRL1.375bn from a private share sale, to fund its acquisition of Grupo OSI’s operations in Brazil and Europe. Existing Marfrig shareholders will have first rights to buy 64m new voting shares for BRL21.50 each, during a period to be defined this week. Marfrig agreed in June to purchase the OSI assets for $400m cash and $280m in shares. There is no bank involved, according to a Marfrig investor relations official.
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Posadas and LaSalle Team Up for Hotels
Real estate player LaSalle Investment Management has signed a pact with Mexico’s Grupo Posadas to invest $60m in the development of eight of Posadas’ Fiesta Inn and One hotels. Under the terms of the agreement, Posadas will build and operate the hotels. In July, Grupo Posadas placed MXP750m in 2013 to yield TIIE+190bp. The issue was a retap of a MXP1.5bn deal sold in April to help fund the repurchase of dollar bonds.
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Bolivia Not Affected by Referendum: Fitch
Ratings on Bolivia will remain unchanged after the referendum last Sunday, according to Casey Reckman, an analyst with Fitch. “The outcome from the referendum doesn’t necessarily resolve anything and doesn’t really change our view, because we already incorporate the general ongoing political instability in our current rating level,” she adds. “On the other hand, an easing of social tensions which results in improved governability, along with continued macroeconomic stability, could benefit Bolivia’s credit fundamentals,” Reckman says. Boosted by his victory at the polls, president Evo Morales announced yesterday that the country is seeking investors for two big gas fields in the country. Fitch currently rates Bolivia B minus, with a stable outlook.
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IDB Lends $400m to Guatemala
IDB has approved a $400m 20-year loan to Guatemala in support of a program to improve fiscal management. The floating rate loan has a 5-year grace period. The new program will support stable macroeconomic policy, as well as improve tax administration and collection to boost equality in Guatemala, the multilateral adds. The ministry of public finance of Guatemala will carry out the program.