Mexico’s Sigma Aliementos has made the initial filing for its IPO process, according to regulatory documents. The Grupo Alfa subsidiary has hired Citi, Goldman Sachs, Bank of America Merrill Lynch and Banorte-Ixe. The size and timing remain unclear, though a filing now leaves open the possibility to get a deal done before the end of the year. The filing follows last week’s unveiling of a EUR675m ($908m) bid for European meat company Campofrio Food Group.
Category: Regions
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ABS Marks Vitro Market Return
Mexico’s Vitro has priced a MXP1.2bn ($91m) domestic market securitization, according to people familiar with the transaction, its first new bond of any kind since before a controversial restructuring process. The 2016 bond backed by the glassmaker’s accounts receivables priced at TIIE+170bp, flat to guidance. Demand reached MXP1.4bn with participation from mutual funds, money market accounts, insurance companies and bank treasuries. BBVA Bancomer and Banorte-Ixe managed the sale, rated AAA on a national scale. Vitro last priced a domestic bond in 2005, raising MXP550m, according to Dealogic data.
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Banco de Chile Makes Japan Debut
Banco de Chile has raised JPY11.1bn ($112m) through a private placement in the Japanese bond market, it says, its first such transaction. The 2016 bond priced at par with a 0.74% coupon, or mid-swaps plus 50bp. Citi was sole lead on the Aa3/A+ rated deal. “The key thing is that this transaction was well priced for the Japanese market and versus its dollar curve,” says a banker away from the deal. Pricing attractively versus the issuer’s peso curve was tricky, considering the issuer lacks a strong USD benchmark – having last issued in USD in 2006, according to Dealogic. So far Banco de Chile has issued $1.12bn in cross-border bonds in 2013, it says, highlighting it will continue to evaluate new markets. It most recently raised CHF175m ($191m) in Switzerland. Banco de Chile follows Banco del Estado de Chile into the Japanese market, with the latter becoming the country’s first yen-denominated issuer in June through a JPY24bn sale. LatAm issuers have raised $1.18bn-equivalent from three deals so far this year, according to Dealogic data. This compares to $1.33bn from two in the corresponding period in 2012, which is also 2012’s full-year total.
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Nafinsa to Syndicate Bonds Hacienda Style
Mexico’s Nafinsa development bank is planning to raise up to MXP5bn ($379m) in the domestic bond market, trying out for the first time a syndicated auction process used by Mexico’s federal government. The plan is to offer 3-year floating-rate bonds and 10-year fixed rated bonds, at MXP1bn-MXP4bn per tranche in a sale scheduled for Wednesday, according to offering documents. The notes are rated AAA on a national scale, and will help fund the bank’s operations. The transaction is to be done through a group of 20 banks. The sale is to be the first in a series of regular transactions, targeting MXP25bn during 4Q2013 and all of 2014. The goal, Nafinsa says, matches the government’s – achieving better pricing and liquid benchmarks. The Hacienda first used the syndicated format in 2010.
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CR Hydro Project Targets Loan ABS
The Reventazon hydroelectric project sponsored by Costa Rica’s Instituto Costarricense de Electricidad (ICE) is planning to raise $415m through a cross-border corporate securitization of a project loan, according to people familiar with the plans. The 20-year senior secured RegD/RegS notes, issued by the Reventazon Finance Trust (RFT) entity, are backed by a 100% participation interest in a 20-year B-Loan from the Inter-American Development Bank (IDB), according to ratings reports. The B loan is part of the secured debt which finances the design, construction, future operation and maintenance of the 305.5 megawatt Reventazon hydroelectric power plant in Costa Rica. The project has been structured so construction, operation, and other risks are covered by ICE. The fixed-rate notes begin amortizing in 2017, and benefit from a debt service reserve account equivalent to the next principal and interest payment due amount. BNP Paribas is managing the transaction, rated BBB minus/Baa3 and expected to price by mid-December. The total project cost is $1.4bn, according to the IDB, with funding also coming from a $475m equity contribution from ICE, a $200m IDB A-loan, $100m IFC loan and $218m in domestic bank debt, according to Moody’s. Reventazon is expected operational in 2016.
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Mexican Moves for Telecom Argentina
Mexican investor Fintech has agreed to buy a 22.7% stake in Telecom Argentina from Telecom Italia for $960m, Telecom Italia says. In the deal, Fintech is buying shares held by the Sofora Telecomunicaciones, Nortel Inversora and Tierra Argentea entities. The Mexican shop owned by businessman David Martinez also plans to launch a tender for the remaining shares of Telecom Argentina and of Nortel, as required by law. The transaction is subject to regulatory approvals. Barclays provided a Fairness opinion to the target, according to Dealogic data.
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Mexican Targets European Food Purchase
Mexico’s Sigma Alimentos is making a EUR675m ($908m) bid for European meat company Campofrio Food Group, it says. The food products unit of Grupo Alfa has signed purchase agreements with shareholders for shares representing 45.2% of the company, at EUR6.80 per share, and will launch a cash tender offer to buy the remaining shares, it says. Campofrio shares closed at EUR6.87 Thursday. The agreements bring Pedro Ballve, a Campofrio family member, into Sigma as a shareholder and chairman of the board. Sigma will finance the buy with credit it has lined up already. The banks and law firms advising on the transaction have not been disclosed. Separately, Sigma is targeting an IPO via Citi, Goldman Sachs, Bank of America Merrill Lynch and Banorte-Ixe, for which the timing is unclear.
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Colombian to Tap Local Market
Codensa plans to issue COP275bn ($142m) in Colombia’s domestic bond market today, with the ability to upsize the sale to COP375bn, according to people familiar with the trade. The electric distributor is expected to offer a 5-year IPC-linked tranche with an anticipated maximum interest rate of IPC+4.40% and a 12-year IPC-linked tranche with a maximum interest rate of IPC+5.40%. Codensa is raising proceeds to pre-finance upcoming bond maturities. Corredores Asociados, Bancolombia, Correval and BBVA are managing the deal, rated AAA on a local scale.
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Generator Revs up Domestic Bond
Celsia is moving ahead with plans to sell up to COP800bn ($414m) in Colombia’s local bond market, at maturities between 18 months and 20 years, it says. The sale is expected in the second week of December, according to people following the process. The electricity generator and distributor is raising funds to repay debt. Rated AA+ on a local scale, the sale will be led by Bancolombia with BTG Pactual and Corredores Asociados as bookrunners.
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CFE Hits Domestic Market
Mexico’s Comision Federal de Electricidad (CFE) has raised MXP10bn ($768m) in the country’s domestic bond market. The state-owned utility sold new 10-year bonds and retapped five-year floating rate notes, in a Mexican market that remains open and active. CFE priced MXP6.75bn in the 2023 at 7.77% or Mbonos+145bp, on the wider end of 130bp-140bp price talk, according to people familiar with the terms. The 2018 reopened for MXP3.25bn at a 100.085 price and TIIE+13bp, flat to secondary levels and inside of the original TIIE+15bp pricing. Demand topped MXP16bn with the fixed-rate tranche seeing MXP11bn in orders from a diverse set of investors. The issuance is rated AAA on a national scale, and was managed by Banorte-Ixe, BBVA Bancomer, Santander and HSBC. CFE’s previous domestic sale was in June, when the issuer originally priced the 2018, to raise MXP12bn.