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.
Category: Regions
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Heavy Demand for Pemex Peso Retaps
Pemex has raised MXP9.6bn ($732m) through a reopening of its peso-denominated 2024 global depository notes (GDN) and 2019 domestic FRNs, with order books topping MXP16.5bn, according to people familiar with the terms. Looking to add liquidity to the GDN market by tapping both foreign and local buyers interested in Pemex and MXP exposure, Pemex reopened the 7.19% coupon bonds for MXP8.5bn at 95.416 to yield 7.82%, or Mbonos+145bp, at the tight end of 150bp-area guidance. Demand topped MXP10.2bn, with Mexican Afores driving most of demand, with foreigners comprising only 13%. The 2019 floating-rate domestic bonds were reopened for MXP1.1bn at TIIE+13bp, in from TIIE+18bp in the previous retap in June. Demand topped MXP6.3bn, and came from a diverse group of local investors including mutual funds, insurance companies, bank treasuries and other investor types. Proceeds are marked for investment needs. Actinver, Bank of America Merrill Lynch, Banamex, BBVA Bancomer, Banorte-Ixe, HSBC, Morgan Stanley, Santander and Scotiabank managed the transactions. Pemex is rated AAA in the domestic market and Baa1/BBB internationally. The 2019 now totals MXP6.1bn and the 2024 GDN MXP18.9bn. Pemex first sold the 7.19% 2024 GDN in September for MXP10.4bn. It is a busy week in Mexico’s local market, with Fibra Uno planning to raise MXP13bn-MXP18bn ($983m-$1.3bn) as soon as today, and HSBC Mexico on tap for MXP5bn, in what would be the bank’s first domestic deal in four years.
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Interacciones Adds Domestic Funds
Mexico’s Banco Interacciones has priced a MXP1bn ($77m) bond in the domestic market, according to people familiar with the transaction. The 2017 notes priced at TIIE+140bp, flat to its previous transaction. The bank specializing in sub-national and public infrastructure lending plans to use proceeds to maintain liquidity and for general corporate purposes. Interacciones and Banorte-Ixe managed the deal, rated A/A+ on a national scale. Interacciones last issued MXP1.5bn in 2016 floating-rate bonds in September, at TIIE+140bp.
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EPM Generates Healthy Bid
Colombia’s Empresas Publicas de Medellin (EPM) has sold COP367bn ($188m) in domestic bonds, it says, getting more than COP925bn demand. The utility sold COP42bn in 2018 bonds at IPC+3.82%, COP96bn in 2023s at IPC+4.52% and COP229bn in 2033s at IPC+5.03%. EPM plans to use proceeds from the sale for investments, including in the $5.3bn Ituango hydroelectric generation project expected online in 2018. Credicorp and Corredores Asociados led the deal, rated AAA on a national scale. More Colombian issuance is on the way before the end of the year, with Banco Davivienda and generator Celsia scheduled to price next week.
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CCD Targets Mexican Residential Developers
Gaia Capital is preparing a credit-focused fund of up to MXP1.2bn ($92m) for Mexico’s certificado de desarrollo de capital (CCD) market, according to a prospectus. The 10-year fund is targeting MXP240m in the first close, and build the remainder through capital calls. Gaia is a new entity formed this year by former Sociedad Hipoecaria Federal (SHF) head Javier Gavito and several other former SHF officials. It will use the funds raised from Afores to invest in mezzanine debt from Mexican residential developers, though it may make other types of investments. Investors would receive initial capital plus an 8.0% preferred return, before proceeds are split 80%-20% with the manager. Finamex is managing the transaction, with VAR as structuring agent.
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IDB Lends to Nicaragua
The Inter-American Development Bank (IDB) will loan $186m to Nicaragua’s government to strengthen its disaster response capabilities, it says. The IDB funds include a $93m, 30-year loan from its ordinary capital. This portion of the funding has a 6-year grace period and undisclosed fixed interest rate. The IDB will also provide another $93m, 40-year loan with a 40-year grace period and 0.25% interest rate. The IDB says the country is the second-most vulnerable globally to hurricanes and tropical storms, and 30th in earthquake vulnerability.
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BCI Adds to Swiss Funds
Chile’s BCI has raised CHF120m ($132m) in the Swiss bond market, adding to the record issuance from LatAm borrowers in that country this year. The bank follows its CHF200m debut in the currency in August, as it continues to seek a greater diversification of funding internationally. The 2015 priced at 99.941 with a 0.75% coupon to yield 0.78%, or mid-swaps plus 68bp, inside 70bp guidance, according to people familiar with the terms. BNP Paribas and Credit Suisse managed the sale, rated A/A1. The bank is pushing to increase its international bond issuance, and has plans to visit Japan to discuss a Samurai sale in 2014, Mario Sarrat, BCI’s head of international financial institutions, told LatinFinance last month.
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Pemex Preps Peso Retaps
Pemex is targeting up to MXP9.6bn ($732m) through a reopening of its 2024 global depository notes (GDN) and 2019 floating-rate domestic bonds today, according to a selling memo. Wednesday’s pricing is tentative and is subject to market conditions, say people familiar the plans, and the Mexican state-owned oil company is expected to sell at least MXP7bn between the GDN and the floater. Proceeds are marked for investment needs. Actinver, Bank of America Merrill Lynch, Banamex, BBVA Bancomer, Banorte-Ixe, HSBC, Morgan Stanley, Santander and Scotiabank are managing. Pemex is rated AAA in the domestic market and Baa1/BBB internationally. Its last retap of its 2017 bonds, for MXP2.5bn, was in March. Pemex first sold the 7.19% 2024 GDN in September for MXP10.4bn, and had previously raised MXP20bn in a 2021 GDN. The sale would headline a busy day in Mexico. Aeromexico is also looking to issue up to MXP1.7bn today in floating-rate notes backed by future flows from credit card payments. Fovissste is scheduled to be the third issuer of the day, looking at paying TIIE+180bp-190bp for a domestic 30-year RMBS sale of up to MXP5.45bn.
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UK Media Group Expands in Brazilian English
British media group Pearson has agreed to buy Brazilian educator Grupo Multi, it says, for GBP505m ($826m). The transaction includes GBP65m in assumed debt, and gives the buyer what it describes as the largest provider of adult English language training in Brazil. Pearson buys control from the Martins family and its Kinea vehicle. Grupo Multi serves more than 800,000 students in Brazil, operating brands including Wizard, Yazigi, Microlins and Skill. It booked GBP42m in operating profit in 2012 and has assets of GBP200m. The transaction is subject to a regulatory review that Pearson expects to be completed in 1H of 2014. Morgan Stanley advised Pearson.
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Davivienda Readies Domestic Offer
Banco Davivienda is expected to sell up to COP500bn ($257m) in bonds in Colombia’s local market on December 10, according to people following the process. Specific terms have yet to be defined. The sale is slated to come just ahead of electricity generator and distributor Celsia’s December 11 sale, in an increasingly active Colombian domestic bond market.