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.
Category: Regions
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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.
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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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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.
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EPM Heads to Bond Market
Empresas Publicas de Medellin expects to sell up to COP500bn ($257m) in domestic bonds today, according to people following the sale. It can choose among tenors of five, 10 and 20 years, with all three tranches IPC-linked. Credicorp Capital and Corredores Asociados are leading the deal, rated AAA on a national scale. Proceeds from the sale will be used for investment, including in the Ituango hydroelectric project. The $5.3bn generation project is expected to come online in 2018. Starting with Ecopetrol and Emgesa in September, the domestic bond market has seen several issuers, up from almost no issuance in the first eight months of the year. Banco Davivienda and generator Celsia are scheduled to follow 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.