Chile’s Mall Plaza is conducting a roadshow this week for a domestic bond issuance, according to market participants. The size and maturity of the deal have not yet been determined, but the bonds will be inflation-linked, says a banker with knowledge of the transaction. The bond issuance could take place as early as next week, according to one local DCM banker. IM Trust is leading the roadshow. The last time Mall Plaza issued was October, for UF5m in 21-year bonds.
Category: Chile
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Santander Chile to Meet Buyers
Banco Santander Chile is planning to meet fixed-income investors on a non-deal basis next week. The bank is scheduled to visit Los Angeles, Chicago, Boston and New York, Monday through Friday. Bank of America Merrill Lynch, JPMorgan and Santander to manage. Aa3/A+/AA minus Santander Chile’s most recent dollar sale was a $500m 2016 floating rate bond managed by JPMorgan and Santander in January.
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Security Launches Follow-on
Chile’s Grupo Security is marketing a follow-on equity offering that is part of a capital raise, set to price June 10. The financial company is selling 450m shares in the primary sale, according to a prospectus. At Tuesday’s CLP210 closing price, the total size would be CLP96bn ($206m). The company is raising funds for growth at its various units. Security’s main operation is Banco Security, and it also has operations in insurance, investments and asset management. IMTrust and Security’s brokerage unit are managing the sale.
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Aguas Andinas Roadshow Begins
The government of Chile began its roadshow for its stake in water utility Aguas Andinas Friday. The 34.98% stake consists solely of the company’s Series A shares and would sell for around $1.14bn based on the company’s $3.27bn market cap, according to a Santiago-based equity analyst. Books close on June 14 with the auction expected to follow June 15. Banco de Chile, Bank of America Merrill Lynch, Citigroup and IM Trust are book runners. GDF Suez, the French infrastructure company which owns a stake in the utility through its 57% stake in Aguas Metropolitanas, is heard to be one of the bidders. Institutional investors and local and international insurance companies are also heard to be looking at the stake. “It’s a quasi-bond,” says the analyst, citing a dividend yield of more than 8% and a stable business model.
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SMU to Issue Debut Bond
Chilean retail company SMU plans to issue its first bond in the domestic market in the second week of June, according to a banker on the deal. The company is expected to issue UF5m ($200m) in 5-year and 21-year bonds. The proceeds will be used to refinance debt and for general corporate purposes. Celfin and Santander Chile are managing the transaction, rated A/A+ on a national scale. The retailer has also registered with securities regulators, Celfin says in a report, the first step required should the company wish to go public. Controlled by Alvaro Saieh, SMU has approximately 20.6% market share in the supermarket sector and generated US$3.2bn in sales in 2010. The company could not be reached for comment. Celfin and Santander Chile led “non-deal” meetings for SMU with equity investors earlier this year, according to a source at one of the banks, who adds that the meetings were not in connection with any future sale.
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Banco de Chile Issues Local Bond
Banco de Chile issued UF4m ($184m) in 5-year bonds in the local market on Friday, receiving over 2x demand, according to a banker on the deal. The notes priced at 94.77 with a 2.20% coupon to yield 3.38%, or 75bp over the BCU-5 benchmark. Institutional investors were the main buyers. The proceeds from the bond issuance will be used for the bank’s funding purposes. Banco de Chile managed the sale, rated AAA on a national scale.
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Luxottica Acquires Majority Stake in Multiopticas
Italian luxury brand Luxottica acquired an additional 57% stake in Chile’s Multiopticas Internacional for EUR95m, bringing its stake in the company to 97%. Luxottica had originally acquired a 40% stake in the eye ware company for EUR40m in 2009, with a call option on the remainder to be exercised between 2012 and 2014. Both parties agreed to accelerate the call option by one year, according to a Luxottica spokesman. The deal will be financed with cash on hand, and Luxottica says it has no plans to access the local capital markets as a result of the deal. The spokesman declines to comment on whether financial advisors were used or on Ebitda levels for Multiopticas.
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Chile’s Banco Falabella Upgraded
Chilean Banco Falabell has been upgraded to AA from AA minus on a national scale with a stable outlook by Fitch. The upgrade is a result of the upgrade of parent company, Chilean retailer Falabella. The reason for the upgrade is due to a significant recovery in 2010 and the beginning of 2011. The reduction in costs as well as the expansion of its credit portfolio to a wider range of clients contributed to the change in rating. In 2011 the level of risk in the consumer industry in Chile is also expected to fall, which Fitch says will also have a positive impact on the company.
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Corpbanca Holders Raise Block Trade
Grupo Saieh, which controls Corpbanca, has sold 14.4bn shares in Corpbanca, raising about $225m equivalent, coordinator Celfin says. The block representing a 6.34% stake priced at CLP7.35, the floor set in the sale, to raise CLP 105.8bn ($226m). The price matched Thursday’s closing levels. Shares closed Friday at CLP7.45. Celfin managed the sale. Separately, Corpbanca is moving ahead with the 25.5m share capital raise it approved in January, according to local press reports.
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Chile Pension Divestment Schedule Extended
Chile’s pension regulator has extended the period in which pension Funds may divest excess local equity investments, according to an announcement on the agency’s website. Excess investment is defined as a more than 65% stake in a company. The Superintendencia de Pensiones (SAFP) extended the period to twelve months, up from six months. An association of pension funds had requested that the period be extended for up to 3 years.