Banco do Brasil is scheduled to meet Swiss investors today ahead of a possible Swiss franc debut bond issue, according to people familiar with the matter. Banco do Brasil, Credit Suisse and Commerzbank will manage the one-day roadshow in Switzerland. Banco do Brasil is considering a minimum benchmark size, likely CHF200m ($220m), with a 5-year or 6-year tenor. Some price discovery will be in order for the state-owned bank, as close comp BNDES’s 2016 CHF bond has a shorter tenor and is less liquid. The BNDES 2016 was seen trading at a bid to mid-swaps of 150bp Friday. Banco do Brasil could target pricing as soon as Tuesday, but timing depends on investor appetite for the Baa3/BBB rated credit and arbitrage opportunity. Banco do Brasil was looking at a Japanese yen-denominated bond issue in the international market earlier this year, but the deal is expected to take more time to get done 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.
Category: Regions
CFE Readies Infra Trust Bond
Mexico’s Comision Federal de Electricidad (CFE) is preparing to raise MXP2.7bn ($206m) in its next issuance through the Fideicomiso de Administracion de Gastos Previos (FAGP) trust, according to Moody’s, which assigns an AAA national scale rating. There were no other details immediately available for the transaction, which can be in UDIs or MXP. The previous FAGP sale was a 3-year bond done last year at TIIE+35bp through Scotia. 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.
Nexxus Fund Closes at $550m
Mexican private equity firm Nexxus Capital has raised $550m for its sixth fund, it says, above the $400m it targeted. Pension funds, sovereign wealth funds, endowments and other institutional investors participated. Nexxus VI includes MXP4.081bn ($312m) raised through a Certificado de Capital de Desarrollo (CCD) transaction closed in June. The economic terms of the limited partnership, which forms the other vehicle in the fund, are similar, targeting a preferred return of 10%. The CCD is denominated in pesos, while the other vehicle is dollar-denominated, according to a company representative. MVision Private Equity Advisers were lead global fundraising adviser, with Citi and Santander joint bookrunners on the CCD. The fund will buy into midsized companies primarily in Mexico.
Pemex Euro Pierces Dollar Curve
Pemex has raised EUR1.3bn ($1.75bn) in new 7-year bonds, it says, in a trade seen coming at an attractive level versus the Mexican state-owned oil company’s dollar curve. Investors put in for orders topping EUR5bn. The Baa1/BBB/BBB+ 2020 priced at 99.358 with a 3.125% coupon, to yield 3.229%, or MS+173bp, at the tight end of 175bp +/minus 2bp guidance that followed 190bp-area talk, according to people familiar with the terms. The issuer opted for a 7-year maturity over an 8-year tenor, the other spot where a new bond would have made sense based on investor feedback. The pricing compares to a MS plus 130bp-135bp level seen Wednesday on the issuer’s 2017 euro-denominated bonds, and a 195bp-200bp on its 2025s. DCM bankers away from the trade saw it coming at 5bp-10bp inside of Pemex’s USD curve and largely representing a smart trade for the issuer. The main investor types participating were pension funds, portfolio managers and financial institutions, Pemex says. BBVA, Credit Suisse and HSBC managed the transaction, which followed a three-day European roadshow. It was the first deal in the currency for Pemex since a $1.46bn-equivalent sale in 2009. Pemex was joined in the market Thursday by Panama, retapping its 2020 to fund a tender, but there is little indication of additional activity in a LatAm cross-border market lacking new announcements and issuers on the road.
Unifin ABS Maintains Price Level
Mexico’s Unifin Financiera has priced a MXP1bn ($76m) domestic ABS, according to people familiar with the deal. The 5-year bonds pay TIIE+160bp, matching the pricing Unifin got on its previous transaction in the program. Banamex and Banorte-Ixe managed the floating rate note, backed by credit receivables for automobile and equipment contracts and rated AAA on a national scale. The price matches the TIIE+160bp level it got on a MXP1bn 2017 sold in May.
Panama Upsizes 2020 Retap
Panama priced $500m in reopened 2020 bonds Thursday to fund a cash tender for its 2015 bonds, almost doubling the $260m size indicated earlier in the day. The 5.200% coupon bond reopened at 107.924 to yield 3.750%, at the tight end of 3.850%-area guidance, according to people following the sale. The sovereign received orders for $689m in the tender open Friday through Tuesday, and said early Thursday it planned to accept $345m. There was no indication following the pricing if Panama would increase the buyback due to the upsizing of the retap. The local market was also an option for Baa2/BBB/BBB Panama to raise funds for the tender. Panama offered $1,091 cash per $1,000 principal to holders of the 7.25% 2015. Citi and JPMorgan managed the new issue and the tender. Panama was previously in the dollar bond market in April when it priced a $750m 40-year bond. The 2020 bond was originally sold in 2009, raising $1bn.
Grana Takes TGP Stake with Canadian Backing
Peruvian construction firm Grana y Montero had agreed to buy a 12.38% stake in natural gas distributor Transportadora de Gas del Peru for $237m from Pluspetrol Resources, it says. The Canada Pension Plan Investment Board has extended a loan to the builder to fund the acquisition. Grana y Montero announced an agreement with the Canadian pension manager earlier in the month to invest together in Latin American infrastructure projects. The construction firm listed on the NYSE in July, raising $474m through the equity follow-on.
Banco de Bogota Launches FO
Banco de Bogota has launched rights offering period for the sale of new ordinary shares, it says, targeting a base deal of COP1.0trn ($517m), that could be upsized to as much as COP1.3trn. The bank is offering shares at COP63,000 each, which compares to a COP67,980 market price Thursday. The offer period closes December 18. Banco de Bogota is managing the sale itself. Parent Grupo Aval agreed to pay $646m for BBVA Panama in July, and in June Banco de Bogota agreed to buy Grupo Financiero Reformador in Guatemala through its Credomatic subsidiary for $411m. Aval is itself preparing to raise up to COP2.4trn in the domestic equity market.
Colombian Bank Raises Local Bond
Banco de Occidente has raised COP350bn ($181m) in Colombia’s domestic bond market, according to people familiar with the terms. A COP218bn 2015 tranche pays IBR+2.08%, a COP71bn 2017 tranche pays IPC+3.89% and a COP61bn 2020 pays IPC+4.35%. Total demand reached COP756bn. Corficolombiana structured the deal, rated AAA on a national scale. Casa de Bolsa, Credicorp, Corredores Associados, Serfinco, Bancolombia, Alianza and Occidente managed. The sale followed Occidente’s COP253bn placement in May.
Fibra Sendero postpones IPO as international accounts cool on Mexican real estate funds
Grupo Acosta Verde’s decision to hold comes after two other fibras list at the bottom of their range