Chilean food products company Agrosuper is expected to issue a debut local bond in the next few weeks through Banchile Citi and LarrainVial. The roadshow is slated to begin Monday, says a person familiar with the transaction. Agrosuper has been heard seeking up to UF5m ($216m) in the domestic bond markets and is said be in the early planning stages for an IPO, also through Banchile and LarrainVial.
Category: Chile
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Banco de Chile Talks Price
Banco de Chile is looking to pay TIIE+50bp on an up to MXP1.5bn ($111m) 3-year bond, marking a debut for the issuer in the Mexican domestic market. Banco de Chile will be the third Chilean issuer to raise money there following similar moves by Banco de Credito e Inversiones (BCI) and miner Molymet. In July, BCI priced a MXP2bn 5-year floater at TIIE + 40bp, while Molymet in April issued MXP1.5bn 1.5-year bonds at TIIE+55bp. Pricing is scheduled for December 6. Banamex and JPMorgan are leading the transaction, rated AAA on a local sale.
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ENAP Crosses Finish Line
Chile’s state controlled oil company ENAP has raised $500m in 2021 bonds, allowing the issuer to meet its financing needs before year-end. The Baa1/BBB-/A bonds priced at 98.321 with a 4.75% coupon to yield 4.965%, or UST+ 285bp, tightening from earlier guidance of UST+ 295bp and UST+300bp whispers. The books went subject 10:30am Thursday after swelling to around $2.5bn and jumped a good 1pt in the grey. “The books size was very strong,” says one investor. Bankers on the deal were mainly comping against ENAP’s existing $500m 2020s which, prior to announcement, were trading at 275bp on a g-spread basis and 250bp spread over USTs. That essentially left investors with a 10bp new issue concession, says a banker familiar with the trade. ENAP was seen as offering a healthy premium over state-owned copper company Codelco, which has a 10-year trading closer to UST+185bp. Proceeds will be used for refinancing purposes. BBVA, HSBC, JPMorgan, Mitsubishi UFJ Securities handled 144A/RegS transaction to market.
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Essal Opts for Share Sale
Chile’s Essal plans to sell shares, allowing government entity Corporacion de Fomento de la Produccion (Corfo) to reduce its 45% position in the water utility. The sale of 387.7m secondary shares would essentially be an IPO, as Essal shares are illiquid. Corfo had also been considering a direct sale of a stake through an M&A deal, as it looks to get its position down to 5%. This would mimic what it did earlier in the year with its Aguas Andinas, Essbio and Esval, as part of a broad government plan to sell assets to help with reconstruction costs from the 2010 earthquake. The offer period closes December 15, with allocation expected the following day. Banchile, Bank of America Merrill Lynch and IMTrust are managing.
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Rabobank Watches Europe, Holds CLP Sale
Dutch bank Rabobank has delayed its plans to sell UF2.5m ($105m) in 5-year bullet bonds in the Chilean market. Expected to issue today, the bank has chosen instead to see how the situation in Europe evolves, says a person familiar with the deal. A UF-denominated tranche is expected to have a 3.05% coupon, and a peso tranche a 6.05% coupon. Proceeds will be used to fund the bank’s operations. The bond is rated AAA on a national scale. Celfin and Deutsche Bank are managing.
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BCP Signs $150m China Loan
Banco de Credito BCP has signed a 5-year $150m loan with China Development Bank, marking the Peruvian bank’s first such transaction with CDB. The move represents an opportunity for financing and also for strengthening relationships with China, says BCP. The spread over Libor was not disclosed.
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Chile’s Entel to Buy Rival GTD
Chile’s Empresa Nacional de Telecomunicaciones (Entel) plans to acquire rival telecom company GTD Grupo Teleductos, in a deal that is still in the works. The move comes as Entel faces increasingly tough competition from the likes of Movistar, a unit of Spain’s Telefonica, and Claro, owned by Mexico’s America Movil. Entel will incorporate GTD’s assets into its operations and in exchange, GTD shareholders will control a 9.8% stake in Entel, worth some $436.86m using Tuesday’s CLP9,890 ($18.85) closing price of Entel’s ordinary shares. The memorandum of understanding that calls for an acquisition in coming weeks is being signed by GTD’s controlling holder Inmobiliaria e Inversiones El Coigue Limitada and Altel Limitada – owned by Almendral Telecomunciaciones which holds 54.8% of Entel. Officials from both telecom companies declined to offer additional details regarding the planned transaction or the financial advisors involved. Entel has a $4.46bn market capitalization, with a free float of some 236,523,695 shares. Last year, it generated Ebitda of around CLP67.5bn on the back of some CLP150bn ($285.8m) in revenues.
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BBVA Chile Roadshows MXP Tap
BBVA Chile is roadshowing for its up to MXP2bn 3-year debut bond in the Mexican local market, with pricing expected to take place as soon as next week depending market conditions. The bond will pay a spread to the 28-day TIIE and is led by BBVA Bancomer. The deal is rated AAA on a national scale. This marks one of several Chilean financial institutions that have looked to tap this market in recent months, with Banco de Chile also plotting an MXP transaction.
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La Araucana Plans Local Foray
Chile-based financial institution Caja de Compensacion La Araucana plans to raise CLP40bn ($77m) in the local markets during the second week of December, with roadshows for the 5-year bond expected to start this week via lead BCI. The coupon has not yet been set, but interest payments are expected to be semi-annual. In December, it issued CLP10bn ($21m) in local 5-year bonds to refinance debt and offer credit to clients, while in December 2010 it raised CLP10bn in 5-year notes via Itau Chile.
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Rabobank Set to Sell Chilean Bond
Dutch bank Rabobank is looking to sell UF2.5m ($105m) in 5-year bullet bonds in the Chilean market on November 30. The deal is expected to have a UF-denominated and a peso-denominated tranche. A third, US dollar-based tranche was initially included but isn’t seeing the demand, says a person familiar with the sale. The UF tranche is expected to have a 3.05% coupon, and the peso tranche a 6.05% coupon. Proceeds will be used to fund operations. The bond is rated AAA by Feller and Fitch. Celfin Capital and Deutsche Bank are managing.