Alejandro Rodriguez has resigned as CEO of Mexico’s Grupo Lala, the dairy products maker says, citing personal reasons. Board member Arquimedes Celes takes his place. Celes was CEO from 2001-2012.
Category: Regions
Posted inDaily Brief
Navistar Reopens MXP Bonds
Mexico’s Navistar has reopened its 2018 domestic floating-rate notes, adding MXP800mn ($61m), according to a regulatory filing. After receiving slightly more than MXP800m demand, the Mexican unit of the US vehicle manufacturer reopened the bond to match the original rate of TIIE+150bp. Proceeds will be used for general corporate purposes. The total size is now MXP1.8bn. Actinver managed the transaction, rated AAA on a national scale.
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Bahamas to Meet Buyside
The Bahamas plans to start fixed-income investor meetings today, according to people familiar with the matter. The sovereign is visiting accounts in London, Boston and New York before finishing in Los Angeles Friday. JPMorgan and RBC are managing. A3/A minus Bahamas last sold $300m in new 2029 bonds at a yield of 7.0% in 2009. The sale through RBC and First Caribbean drew nearly $400m in orders and was upsized from $250m. The 2029 bonds were seen trading to yield 5.75% last week.
Posted inDaily Brief
Miner Readies Takeout
Peruvian miner Hochschild Mining is preparing an international debt issuance to replace acquisition debt, what would be its debut bond. The plan is for $350m in 2020 and 2023 notes issued through the Compania Minera Ares subsidiary and guaranteed by Hochschild and its main subsidiaries, according to ratings reports. A roadshow was scheduled to begin November 28 and visit Lima, Santiago, Los Angeles, London, New York, Zurich, Geneva, Boston and New York through Wednesday, according to people familiar with the matter. BBVA, Bank of America Merrill Lynch and Goldman Sachs are managing the transaction, rated Ba1/BB+. Hochschild closed October 1 a $340m bridge loan with that group of banks with pricing at Libor+350bp. Hochschild is in the process of acquiring International Minerals, owner of 40% of the Pallancata mine and Inmaculada advanced project in Peru, for $298m, with funding coming through the 1-year loan and a $73m equity placement done earlier this month. The target’s shareholders were to vote on the deal by December.
Posted inWeb Articles
Mexican Senate approves financial reform
Part of Peña Nieto’s reform package, the bank bill changes the bankruptcy code – but analysts are uncertain of the long-term impact
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Yara Expands in LatAm
Norwegian fertilizer company Yara International has agreed to acquire fertilizer producer OFD Holding from Omimex Resources for $425m, it says. The deal includes the Abocol business in Colombia, Misti in Peru, Omagro in Mexico, Fertitec in Panama and Costa Rica, Cafesa in Costa Rica and Norsa in Bolivia – all engaged in production and distribution. Yara sees the new assets as strengthening its downstream footprint and growth platform in Latin America, and complementary to its $750m acquisition of Bunge’s fertilizer business in Brazil last year. The buyer estimates an annual synergy potential of $20m. OFD had net revenues of $796m in 2012 and Ebitda of $35m. Closing is expected during 2Q 2014 subject to approvals. Yara did not respond to a request for additional comment.
Posted inDaily Brief
Colombia Ponders GDN
Colombia is considering issuing its first global depository note to draw international investors into its local debt market, Michel Janna, Colombia’s head of public credit, tells LatinFinance. The government is advancing plans to curtail issuance of COP-denominated Treasury (TES) bonds next year by at least COP2trn ($1.04bn), opening up space for a GDN, pending an appropriate structure for dealing with the country’s 14% withholding tax. “There are a couple of banks with the idea of launching GDNs for Colombia. We encourage this: if it’s done in the proper way, there will be an advantage for the local market. It simplifies the procedure for investors to tap the local market,” Janna says. The sovereign will consider issuing hard currency debt in the new year, though timing will depend on an increase in US Treasury yields “by up to 50 basis points in the next two to three quarters” and Colombia’s presidential elections in May, he says. Further diversification of Colombia’s funding currencies is desirable, but not imminent. “It’s a possibility that we could go for euro or yen transactions at some point, but not in the immediate future,” he says. The government is establishing a centralized treasury, where public entities with high cash balances – including the airports agency, the oil agency and the telecoms fund – will be required to deposit their excess cash, instead of in TES, as has been the norm. The result will be a decline in TES issuance by public entities of at least 2 trillion pesos in 2014 and 6 trillion pesos thereafter, though the scheme, which will be fully implemented y 2015, will not impact the TES primary market.
Posted inDaily Brief
Mexicans Set For Domestic Debt
Mexico’s Fibra Uno is planning to raise MXP13bn-MXP18bn ($983m-$1.3bn) in the first-ever domestic bond placed by a Fibra fund today, say bankers familiar with the deal. The real estate fund is considering up to four tranches and may choose among a 5.5-year floating rate bond, 10-year and 20-year fixed-rate bonds and 15-year UDI-denominated notes. Proceeds will be used to refinance bank debt. BBVA Bancomer, Banamex, Credit Suisse and Santander are managing. Another deal scheduled to price today is Mexico’s Banco Interacciones, offering MXP1bn 3.5-year notes paying a spread to the TIIE benchmark. The Mexican unit of US vehicle manufacturer Navistar is also planning a MXP800m reopening of the 2018 floating-rate bonds it sold earlier in the year. Proceeds will before general corporate purposes. Actinver is managing the transaction, rated AAA on a national scale. Finally, Cultiba is also preparing to raise up to MXP1.2bn ($91m) in what would be its domestic bond market debut. The beverage company is targeting 5-year floating- rate notes to raise funds for general corporate purposes. Banorte-Ixe and Santander are managing the transaction, rated AA/AA minus on a national scale.
Posted inDaily Brief
Oaxaca Preps Guaranteed Bond
The Mexican state of Oaxaca plans to raise up to MXP2.76bn ($210m) in the domestic bond market, according to a regulatory filing. The 15-year bonds come with a 1.5% guarantee from funds received by the federal government and will raise funds for public investment. Banamex, Interacciones and Santander are managing the deal, with Cofinsa as structuring agent.
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BdB Breaks into Switzerland
Banco do Brasil has become the latest LatAm credit to sell its first Swiss market bond, upsizing a transaction Tuesday to CHF275m ($303m) from a planned CHF200m. The 5.5-year bond was seen pricing 30bp through the government-controlled bank’s dollar curve. The Baa1/BBB/BBB borrower priced at 99.729 with a 2.50% coupon to yield 2.55%, or mid-swaps plus 190bp, in line with guidance of 190bp talk and IPT. The deal drew more than 50 accounts, with retail and private banking accounts participating and some institutional investors. Banco do Brasil, Credit Suisse and Commerzbank managed. Low rates versus USD have brought LatAm borrowers to the CHF market to raise $3.45bn-equivalent from 17 transactions so far this year, according to Dealogic. This total is well ahead of the previous record of $1.43bn in all of 2012. Banco do Brasil was also looking at a Japanese yen-denominated bond issue in the international market earlier this year, but the deal is expected to take more time due to Japanese investor concerns about the economic situations in both Brazil and Japan. Banco do Brasil, JPMorgan, Citi, Mizuho and Mitsubishi UFJ-Morgan Stanley are working on the euroyen transaction. The bank held non-deal fixed-income investor meetings in Asia in September with JPMorgan. CFO Ivan Monteiro told LatinFinance earlier this year the bank would focus on diversification of debt funding this year, with Japan and local LatAm currencies such as Chilean pesos among the options beyond euros and dollars.