Mexico’s central bank held rates at 3.5%, in line with market expectations. Barclays points to the board’s prior indications that it didn’t see cuts in the near term. The shop says it expects Banxico to also hold when it meets in January, given inflation and growth considerations. “If the economy behaves as the board is expecting, Banxico will likely remain neutral during 2014,” it says.
Category: Regions
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Nemak Closes Facility
Grupo Alfa auto parts manufacturer Tenedora Nemak has closed a $465m 2018 senior unsecured loan, according to people following the process. The price is tied to a leverage grid, with the borrower paying Libor+150bp at less than 2.0x, 175bp at 2.0x-2.5x, 200bp at 2.5x-3.0x and 225bp at more than 3.0x. BBVA Bancomer, Citi, HSBC Mexico, Banco Santander and Export Development Canada participated in the deal, at $93m each. Citi was the admin agent, and was a joint lead arranger and joint bookrunner along with BBVA, HSBC and Santander. The Mexican is a producer of aluminum engine blocks, cylinder heads and transmission components.
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Sigma Pitching Lenders
Mexico’s Sigma Alimentos is planning a bank meeting Tuesday for a $1bn senior unsecured term loan facility, LatinFinance understands. The 5-year loan comes at Libor+125bp and is tied to a leverage grid. Bank of Tokyo-Mitsubishi is leading. The Grupo Alfa food products subsidiary is making a EUR675m ($908m) bid for European meat company Campofrio Food Group. It is also planning an IPO with Citi, Goldman Sachs, Bank of America Merrill Lynch and Banorte-Ixe, likely happening in 2014.
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Electrical Parts Maker Prints MXP Bond
Mexican electrical parts maker Xignux has priced a MXP1.5bn ($114m) domestic bond, according to a person familiar with the transaction. The 10-year fixed-rate bond priced at 8.96% or Mbonos+250bp, flat to guidance, and received MXP2.5bn in demand. Proceeds from the transaction, rated AA on a national scale, will be used to repay debt. The funds will also be used for other corporate purposes. Banamex managed the sale. It was the first local bond for Xignux since a MXP1.4bn 2015 in June 2008.
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HSBC Mexico Makes Rare DCM Visit
HSBC has issued MXP5bn ($381m) in fixed and floating-rate domestic bonds, according to people familiar with the terms. The Mexican arm of HSBC Holdings priced a MXP2.7bn 2023 bond at 8.08% or Mbonos+161bp, in line with 160bp area guidance. A MXP2.3bn 2018 bond priced at TIIE+30bp, in line with TIIE+30-35bp guidance. Total demand topped 2.1x, with Afores participating in the fixed-rate portion and treasuries, mutual funds, retail and other investor types participating in the FRN. Proceeds will help fund the bank’s portfolio. HSBC’s own capital markets arm managed the transaction, rated AAA on a national scale. The bank’s most recent previous domestic offering was a MXP4.18bn subordinated bond sale in June 2009.
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ISA Names Finance Official
Colombia’s ISA has named Carlos Alberto Rodriguez as vp of corporate finance, effective monday, it says. He returns to ISA from Grupo Inversiones Mundial to replace Camilo Barco, who left the company earlier this year and joined BBVA. The move comes as part of a new organizational structure for ISA.
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Dominican Banks Merge
Centro Financiero BHD and el Grupo Financiero Leon have agreed to merge, the two Dominican financial institutions say, bringing all operations under an entity to be known as Centro Financiero BHD Leon. At the operating level, the deal creates Banco BHD Leon, to be the country’s second largest bank with DOP182bn ($4.29bn) in assets. The two privately-held entities were mum on the valuation assigned to each side, and do not indicate what size of a minority stake in the combined entity Leon shareholders will have. The pair also notes that they are in the process of buying out the stake held by Spain’s Sabadell, but do not discuss the price involved. Sabadell held 20% of BHD prior to the Leon transaction, according to BHD’s website. The parties did not respond Thursday to request for additional details. BHD president Luis Molina is to become president of BHD Leon group’s board, with Leon president Carlos Guillermo Leon as vice president. Molina will also be president of Banco BHD Leon, with current Banco BHD CEO Steven Puig as CEO. The transaction awaits various approvals. Lazard advised BHD, and Bank of America Merrill Lynch ran a sale process on behalf of Leon. The sale follows the Leon family’s $1.24bn sale of 51% of its CND brewery to AB InBev last year.
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Chilean Raises $57m in JPY Placement
Banco de Chile has raised JPY5.8bn ($57m) through a private placement in the Japanese bond market, according to people familiar with the transaction. Issued on the back of reverse inquiry, the 2019 bond priced at par with a 1.03% coupon, to yield mid-swaps plus 65bp. Citi was sole lead. The Aa3/A+ Chilean raised a JPY11.1bn ($112m) euroyen last month in its first-ever deal in the Japanese bond market, which came at MS+50bp.
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Aeromexico Prints Domestic ABS
Aeromexico has raised MXP1.5bn ($115m) from the sale of domestic bonds backed by future flows from credit card payments. The 2018 bond priced at TIIE+200bp, according to people familiar with the matter. Proceeds will be used to replace existing debt. Actinver, Banamex, and BBVA managed the deal, rated AA+ on a national scale. Aeromexico issued $117m in bonds guaranteed by the US Export-Import Bank in July, but has otherwise not been a frequent borrower in the domestic or international bond markets in recent years. It raised $330m in an IPO in 2011.
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Fovissste Raises RMBS
Mexican government housing lender Fovissste has raised MXP5.45bn ($413m) through a domestic RMBS sale, according to people familiar with the transaction. The 2043 UDI-denominated bond priced at 3.74%, or Udibonos+190bp, in line with 180bp-190bp indications. Demand topped 1.49x. The Mexican government-backed housing lender’s bonds come with a 23.2% partial guarantee from Mexico’s Sociedad Hipotecaria Federal (SHF). Proceeds from the sale will fund Fovissste’s lending. Actinver, Banorte-Ixe, and CI Casa de Bolsa managed the deal, rated AAA on a national scale. Fovissste previously visited the local market in May, raising MXP6.87bn in a UDI-denominated 2043 issue which was priced at 2.58%, or Udibonos+180bp.