Category: Mexico

Mexican baker Bimbo has appointed Barcel’s Javier Gonzalez Franco as director general. His predecessor Pablo Elizondo Huerta becomes adjunct director general at Grupo Bimbo and Gabino Gomez Carbajal takes over from Gonzalez at Bimbo subsidiary Barcel.

Mexican petrochemicals company Petrotemex has secured $150m in commitments for a dual currency loan, the syndication of which is now wrapped up, say bankers familiar with the transaction. It pays on a net consolidated debt to Ebitda grid, which, at above 3x leverage, pays 60bp over TIIE and 70bp over Libor. In the 2.5x-3.0x band, it pays 45bp and 55bp respectively. At 2.0x-2.5x, it pays 30bp and 45bp. And at less than 2x, it pays 20bp over TIIE and 40bp over Libor. The company is heard to have current leverage at the high end of the grid. Standard Chartered led.

Victor Segura, CFO of Mexican homebuilder Corporacion GEO has resigned due to health reasons, according to the company. Starting December 1, Saul Escarpulli, director of finance, and will take over his financial duties and Daniel Gelove, corporate director of administration, will assume his administrative duties. Both will report to CEO Miguel Gomez-Mont.

Mexican retailer Gigante has launched an offer to buy back its $260m 8.75% of 2016 senior bonds. The offer managed by Citi will expire December 27. It pays a $20 per $1,000 premium for holders participating before December 12. No new issue has been planned to fund the purchase, according to a banker on the deal.

Mexican retailer and financial services provider Grupo Elektra has named Guillermo Colin as CFO. He joins from Banco Azteca, where he was also CFO.

Mexican bank ratings will not see downward pressure in the months ahead, barring a dramatic worsening of the global liquidity crisis, says Fitch. “Overall, Fitch expects that the major Mexican banks will continue recording sound earnings, as the domestic operating environment will likely remain benign,” says Fitch director Alejandro Garcia. He cites strengths like the low level of private sector loans to GDP, stable interest rates and strong internal demand. The ROA for the six largest banks continued strong, at 2.6% for the year to September. Fitch also believes that both retail and total loans will likely continue to post double-digit growth. However, a slowdown in loan growth in the sector cannot be ruled out, as tougher conditions to access long-term funding and/or capital in the global markets, coupled with the upward trend in delinquent retail loans, could eventually result in stricter credit policies toward the banks.

MM Cinemas is planning to offer up to MXP1bn in 2012 bonds in the Mexican market. According to bankers on the deal, the offering is expected to consist at least partially of FRNs. Proceeds will go towards repayment of debt and working capital. Santander is sole manager on the mxA- transaction. No timetable has been set.

Volkswagen Leasing is expected to price Friday up to MXP4bn in 2012 domestic bonds, according to bankers on the deal. The mxAAA transaction is expected to feature fixed and floating-rate notes. Proceeds will support the lending portfolio of the financing arm of Volkswagen’s Mexico unit. HSBC and Santander are joint bookrunners.

Mexican food producer Sigma Alimentos is roadshowing a local bond issue worth up to MXP2bn. The subsidiary of Grupo Alfa plans to issue MXP1.5bn-MXP2bn mid-December, treasurer Reynaldo Garza tells LatinFinance. It will comprise a to-be-determined combination of 2014 fixed and 2012 floating-rate notes. “The Mexican market has been a bit tighter in the last few months, but there is still room in November and early December to obtain attractive financing,” he says. Proceeds will refinance short-term debt. Bank of America is managing the offer.