Guatemala’s Banco Industrial is preparing a securitization of dollar-denominated diversified payment rights (DPR), according to Fitch which assigns a BBB rating to a $150m sale due 2025. Timing and further details were not disclosed. In September 2011, Banco Industrial closed a $150m securitization of dollar-denominated diversified payment rights (DPR) through a $40m 7-year tranche, a $60m 10-year tranche issued at a fixed rate, and a $50m in 7-year portion paying a spread over Libor. Wells Fargo managed the last private placement, rated BBB by Fitch. Banco Industrial was last in the public market in October 2012, when it sold a $500m 10-year bond.
Category: Regions
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Colombian Close to Wireless Club Loan
Colombia Movil, operator of the Tigo wireless service, is close to a $500m-equivalent peso-denominated loan, according to people familiar with the transaction. The facility should be for 7-10 years, and will raise proceeds to repay short-term debt. Corredores Asociados and Correval are leading the transaction, expected to close before the end of the year.
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Daimler Mexico Seeks Domestic Bond
Daimler Mexico is planning to issue up to MXP1.75bn ($135m) in 3-year and 5-year floating-rate domestic bonds, according to a Scotia research report. BBVA Bancomer and Scotiabank are managing the auto manufacturer’s sale, rated AAA on a national scale. Daimler last came to market in November 2012, when it priced a MXP1bn 2015 bond at TIIE+35bp.
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Interacciones Prepares MXP Debt
Mexico’s Banco Interacciones is looking to issue up to MXP1bn ($77m) in the domestic bond market November 27, according to a regulatory filing. The 3.5-year notes will pay a spread to the TIIE benchmark. The bank specializing in sub-national and public infrastructure plans to use proceeds to maintain liquidity and for general corporate purposes. Interacciones and Banorte-Ixe are leading 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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Malaysians Back Off OGX Deal
Malaysia’s Petroliam Nasional (Petronas) has has backed out of an $850m agreement to buy a stake in one of OGX’s oil fields, OGX says. OGX is considering its legal options. OGX had agreed in May to sell a 40% stake in the blocks in the Tubarao Martelo field to Petronas, and the buyer in August indicated it was reluctant to complete the deal. OGX filed last month for bankruptcy protection.
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Swiss Re Buys Brazilian Stake
Swiss Re has agreed to buy shares representing a 14.9% stake in Brazilian insurer SulAmerica for $334m, it says. It is buying 33.7m units from ING, which has been decreasing its position in SulAmerica, representing $250m of the total, and 13.1m units from the controlling Larragoiti family. A unit holds one ordinary and two preferred shares. Once the two transactions are completed, ING will hold 17.1% of SulAmerica and the Larragoitis 20.9%. ING agreed to sell 26.5m units to IFC in May. Sul America units closed at BRL15.95 ($6.90) Monday.
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Codensa Adds to Domestic Sale
Codensa has raised COP100bn ($52m) in in Colombia’s domestic bond market, it says, adding to the COP275bn sold last week. The electric distributor sold COP15.3bn in additional 2018 bonds at the same IPC+3.92 price, and an additional COP84.7bn in 2025 bonds at IPC+4.80%. Codensa is raising proceeds to pre-finance upcoming bond maturities. Corredores Asociados, Bancolombia, Correval and BBVA managed the deal, rated AAA on a local scale.
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Isagen Sale to Trickle Open
Colombia’s government will officially open the sale of its 57.66% stake in power generator Isagen today, it says, though the main portion of the sale in which a major domestic or international player might take control is likely to wait until next year. The initial phase opening today and running through January 20 offers up to 6% of the company to former or current Isagen workers, unions, union federations, pension funds, unemployment funds and family compensation funds, as required by law. The remaining portion would be sold in another offer following that period. The government is seeking COP4.99trn ($2.6bn) in total, offering 1.57bn shares at the previously announced price of COP3,178 each. Interested bidders include Colombians Grupo Argos and EEB, and foreigners Duke Energy and GDF Suez. A legal challenge to the sale process led by former Colombian president Alvaro Uribe is still in the process of being mounted.
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Rubiales Hits DCM for Quick Takeout
Pacific Rubiales has raised $1.3bn in new bonds to replace acquisition debt, against a market backdrop improved by US Fed nominee Janet Yellen’s pro-QE stance. The Colombian-Canadian E&P operator got $4bn in orders for the 2019 NC3 and priced at 99.985 with a 5.375% coupon to yield 5.375%, the tight end of 5.500%-area guidance and earlier mid-5% initial price thoughts. The BB+/ BB+/Ba2 bond was heard trading up 0.25 points late Monday. The closest comps were Rubiales’ 2021, seen trading to yield 5.7%, and its 2023, trading to yield 6.1%. “Investors like the name because it has good management and a strong reputation. It is a strong double-B credit with potential of an upgrade,” says one European investor, noting attractive pricing for 5-year paper. The notes will be unconditionally guaranteed by Rubiales’ most significant operating subsidiaries. Proceeds from the bond, along with cash and a revolving credit facility, are going to finance the $1.52bn acquisition of fellow Colombian E&P operator Petrominerales, including the repayment of Petrominerales’ existing debt. Last month, Rubiales closed a $1.3bn 1-year bridge loan supporting the acquisition from Bank of America, Citi, HSBC and Itau. Monday’s bond will be governed by New York law and listed in Luxembourg. Bank of America Merrill Lynch was global coordinator with Citi, HSBC and Itau as joint books and BBVA and GMP as co-managers.
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Peru Power Plant Targets Project Bond
Sponsors of the Eten power project in Peru are planning to raise $145m through a senior secured bond due 2034 to fund construction, according to Fitch, which assigns a BBB minus rating. The Planta de Reserva Fria de Generacion de Eten project is sponsored by Cobra Peru, a unit of Spain’s ACS, and EMCE. The senior secured notes come with a 20% credit guarantee from development bank CAF. The 223 megawatt simple-cycle natural-gas fired power plant will be located in Peru’s Chiclayo province, and was awarded to a consortium comprised of Cobra and Enersa in 2011. BTG Pactual is managing the transaction.