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.
Category: Regions
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.
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.
Fibra Names CFO
Terrafina has named Angel Bernal as CFO, it says, effective December 15. He will report to Alberto Chretin, CEO of the trust focused on industrial properties. Bernal joins from LaSalle Investment Management Mexico, where he was vp and acquisitions officer. He replaces Francisco Navarro.
Fitch Raises Mexichem
Fitch has upgraded Mexichem’s rating to BBB from BBB minus, it says, based on a strong business and financial profile. The Mexican petrochemical producer has doubled in size since 2009, through organic growth and acquisitions. The agency calls Mexichem’s credit metrics “strong,” and expects net leverage will remain within the management’s 2.0x target. “Mexichem’s financial profile is underpinned by its recurring positive free cash flow and its strong business profile as a leading vertically integrated chemical and petrochemical company in Mexico, with a geographically diversified operating base and low cost structure,” Fitch says. Total debt to Ebitda for the 12 months ended September 30 was 2.5x and net debt to Ebitda 1.1x. The outlook is stable.
Fovissste Plans RMBS
Mexican government-backed housing lender Fovissste plans to raise up to MXP4.6bn ($357m) through a domestic RMBS sale in December, according to a regulatory filing. The planned 29.5-year fixed-rate bond is denominated in UDIs. Proceeds will fund lending. Actinver, Banorte-Ixe, and CI Casa de Bolsa are managing the sale, rated AAA on a national scale. Fovissste last visited the local market in October, raising MXP4.6bn in a UDI-denominated 2039 issue which was priced at 3.23%, or Udibonos+185bp.
Sigma Readies IPO Papers
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.
Codensa Places Well Bid Domestic Bond
Codensa has raised COP275bn ($143m) in Colombia’s domestic bond market, according to people following the sale. The electric distributor priced a COP166.4bn 2018 tranche at IPC+3.92, inside a 4.40% limit, and a COP108.6bn 2025 portion at IPC+4.80%, inside a 5.40% limit. Total demand reached COP900bn. 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.
Cabei Preps MXP Debt
The Central American Bank for Economic Integration (Cabei) plans to raise up to MXP2bn ($154m) through a bond sale in Mexico’s domestic market, according to S&P which assigns a AAA domestic rating. The 2016 bond will pay a spread to the TIIE. JPMorgan is managing the transaction, according to people following the sale. The bank sees current swaps as very attractive, and while it doesn’t need funding in MXP, a transaction would represent an opportunistic trade. The well-traveled borrower is considering issuance in a range of currencies and markets this year, fulfilling plans to raise some $800m in the markets this year. The bank is also mulling a Taiwanese dollar or offshore renminbi issuance in Taiwan. Last month it raised CNH500m ($80m) in its first-ever offshore renminbi bond deal, pricing at par with a 3.20% coupon.
EEB Adds to 2021
Empresa Energia de Bogota (EEB) has raised $112m through a private placement reopening its 6.125% 2021 bond, it says. The total issue size is now $722m, following the initial $610m sale. The BBB minus/ Baa3 borrower reopened the bond at 101.75 to yield 5.847% in a deal done quietly during the previous week. Proceeds will be sued to help finance investments in Guatemala and thus strengthening transmission infrastructure in Guatemala through its affiliates Tecsa and EEBIS. Deutsche Bank managed. The markets expect more fundraising ahead from EEB, particularly if it emerges the winner of the sale process of the Colombian government’s 57.7% stake in Isagen. EEB indicated its interest in August, entering a process with other bidders including Grupo Argos, Duke Energy and GDF Suez. The government is asking $2.63bn for the stake.