Banco Internacional del Peru (Interbank) has sold $50m in subordinated bonds in Peru’s local market, according to people familiar with the sale. The transaction was upsized from $25m to $50m. The 10-year bonds pay 7.50%. Interbank’s capital markets arm led the deal, rated AA/AA on a national scale.
Category: Regions
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Bahamas Decides to Wait
After finishing fixed-income investor meetings this month, Bahamas has decided to wait on its international bond plans, according to a finance ministry spokesperson. “From our point of view, feedback was positive but we took the decision to start investor meetings early and want to issue in 2014,” says spokesperson. The sovereign tends to issue every 4-5 years, but is under no funding pressure to issue. While Bahamas would consider a similar size and tenor to its last bond transaction, it would also consider any tenor between 10 and 30 years. The A3/A minus borrower sold $300m in 2029 bonds at a yield of 7.0% in 2009, while getting $400m in orders. The 2029 bonds were seen trading to yield 5.75% last week. JPMorgan and RBC managed the meetings.
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Celsia Generates Domestic Demand
Celsia has issued COP800bn ($413m) in Colombia’s domestic bond market, it says. The electricity generator and distributor sold COP84bn in 2016 bonds paying IBR+2.17%, COP264bn in 2019s at IPC+4.30%, COP241bn in 2025s at IPC+5.00% and COP212bn in 2033s at IPC+5.33%. The transaction received 2.25x the initial COP600bn offered. Proceeds from the sale will be used to repay debt. Bancolombia managed the deal, rated AA+ on a national scale, with bookrunners BTG Pactual and Corredores Asociados. The sale pushes Colombia’s 2013 domestic bond issuance total to $4.41bn-equivalent this year, according to LatinFinance data, nearly reaching the $4.44bn total for all of 2012.
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Actinver Adds Equity Capital
Mexico’s Grupo Financiero Actinver has priced a MXP690m ($53m) equity follow-on, according to regulatory filings. The brokerage is selling 58.1m primary shares, including a 15% greenshoe, at MXP13.95 each. The level represents a 4.5% discount to the previous MXP14.60 closing price. Shares closed at MXP14.19 Wednesday. The issuer received 5x demand, and it expects to spend 67% of the proceeds to fund existing operations, 13% on working capital and 20% to expand into new product areas. Actinver and BBVA managed the transaction. The brokerage raised $68m-equivalent in its 2010 IPO. Elsewhere in ECM, Brazil’s Via Varejo was scheduled to price today a follow-on targeting more than BRL3bn ($1.29bn). Colombia’s Banco de Bogota should close a COP1.0trn ($517m) follow-on December 18 to finish off new issuance for 2013.
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Honduras Upsizes Post-Election Bond
The Republic of Honduras has issued $500m in new 7-year bonds, doubling the expected size on high demand. The B2/B sovereign was one of five cross-border issuers Wednesday looking to take advantage of last week’s first debt portfolio net inflows in months and squeeze a deal in before the end of the year. Honduras got about $1bn in demand, according to an investor, and had been planning to issue the $250m remaining under an authorization, but decided to add another $250m as part of prefunding efforts for 2014. The 2020 priced at par to with an 8.750% coupon, yielding at the tight end of 8.750%-8.875% guidance that followed “very high 8s” talk. The bond traded up 0.25 points in the grey Wednesday, investors note. Honduras was seen offering buyers a 25bp-30bp new issue premium. The transaction follows the favorable resolution of a $205m US lawsuit – which had hampered its March bond sale – and a market-friendly outcome to the November presidential elections, in addition to negotiations with the IMF. Honduras finance minister Wilfredo Cerrato told LatinFinance in October the sovereign was looking to leverage these developments to sell a new $250m 5-year bond. Investor feedback and strong interest, however, was heard swaying the borrower to opt for the 7-year. A retap of the $500m 10-year sold in March was deemed not possible due to tax restrictions. Proceeds are being used to cover short-term indebtedness. Deutsche Bank was sole lead. Elsewhere in DCM, Wednesday’s $2.25bn parade included Trinidad and Tobago, AES Gener, Idesa and Digicel. The Bahamas ended fixed-income investor last week and remained to announce any deal.
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CFE Hits Local Market
Comision Federal de Electricidad (CFE) has raised MXP1.66bn ($128m) in Mexico’s domestic bond market, according to a person familiar with the terms. The 4-year bond issued through the Fideicomiso de Administracion de Gastos Previos (FAGP) trust pays TIIE+25bp. The state-owned utility uses the Bancomext-guaranteed FAGP trust to pre-fund subcontractors’ authorized expenses under a special infrastructure program that cannot be reimbursed before project completion. BBVA was sole lead on the transaction, rated AAA on a national scale. The previous FAGP sale was a 3-year bond done last year at TIIE+35bp through Scotia. Last month, CFE raised MXP10bn through the sale of new 10-year bonds at 7.77% and a reopening of 2018 floating rate notes at TIIE+13bp.
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Petrochemical Producer Makes DCM Debut
Mexico’s Grupo Idesa generated $400m in orders for its $300m international bond debut, according to people following the sale, pricing at a yield in line with initial expectations. The 2023 NC4 priced at 99.34 with a 7.875% coupon to yield 8.000%. The BB minus/BB minus rated petrochemical producer was seen offering 100bp versus where fellow Mexican industrial Grupo Kuo would price a new 10-year bond. Fund managers accounted for 65% of the trade, private banks 20%, insurance companies 5% and other investor types 10%. Approximately 30% came from Mexico, 50% from the US and 20% from EMEA. Morgan Stanley, HSBC and Scotiabank managed. Idesa is seeking funds to refinance $195m of existing debt and for general corporate purposes, including capex and other investments. Idesa co-sponsored the Etileno XXI project in Mexico with Brazil’s Braskem, which closed a $3.2bn loan package in December 2012.
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Trinidad Returns to Bond Market
Trinidad and Tobago returned for its first international bond since 2007, upsizing by $50m to $550m after getting $5bn demand. The A/Baa1 rated sovereign priced at par with a 4.375% coupon, to yield tight to the 4.750% initial price talk. It was up 1.5 points in the grey Wednesday, traders say. “Trinidad and Tobago received good sponsorship at 4.75% and with other BBBs trading around 4.125%-4.500% area, Trinidad provides value at mid-to-low 4.000%,” Oppenheimer’s managing director of investments Carl Ross tells LatinFinance. Trinidad’s existing 2020 and 2027 bonds, traded to yield around 2.55% and 4.00%, respectively. These levels make the new bonds appear cheap, Ross says, but this can be misleading, as the existing bonds are illiquid small and held by locals. Trinidad has authorization to issue up to $1bn. It had been considering a new bond during the past few years, both to finance the budget deficit, and to reestablish a presence in the international markets. The sovereign also benefits from low borrowing costs in the domestic market. Citi managed Wednesday’s transaction. Trinidad’s previous dollar bond was a $150m 20-year sold in 2007.
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Digicel Adds to 2020
In a continuing demonstration of demand for high-yield credit in the region, Digicel tacked on an extra $500m to its 2020 senior notes, bringing the size to $2.0bn. The Digicel Limited unit reopened the 8.250% coupon bonds at 103.000 to yield 7.488%, in line with 103.000 price guidance. The proceeds are marked for general corporate purposes, which could include capital expenditures, investments, acquisitions or debt repayment. The Caa1/B minus transaction was led by Citigroup, JPMorgan, Barclays, Credit Suisse and Deutsche Bank. Digicel first issued $1.5bn of the 2020 in September 2012.
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RE Fund Taps Mexican DCM in Size
On a day that saw five LatAm cross-border bond sales, the region’s largest deal came from a domestic market. Mexico’s Fibra Uno real estate trust has raised MXP8.5bn ($654m) in Mexico’s bond market, according to people following the sale, representing the first time a Fibra real estate fund taps the local buyside. The three-tranche transaction is also the Mexican market’s largest from a non-government issuer this year, and drew about MXP10.5bn total demand. A MXP4.35bn peso-denominated 2019 tranche priced at TIIE+80bp. A MXP2.0bn peso-denominated fixed-rate 2023 tranche pays 8.4%. A MXP2.15bn UDI-denominated 2028 tranche pays 5.09%. The issuer elected not to use a 20-year fixed-rate peso bond that had also been an option. Afores and financial institutions were heard participating mostly in the two longer tranches, with mutual funds and private banks present in the TIIE tranche. Proceeds will be used to refinance bank debt. The issuer says its leverage has reached about 35% of its portfolio, in line with a goal to keep it under 50%. BBVA Bancomer, Banamex, Credit Suisse and Santander managed. The fund was Mexico’s first Fibra to IPO, in 2011. Mexico’s domestic DCM issuers have raised $22.09bn-equivalent this year through Wednesday, according to LatinFinance data, already passing the full-year 2012 total of $18.56bn.