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.
Category: Regions
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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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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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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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PdVSA Defines Bond Sale
Petroleos de Venezuela (PdVSA) has come out with additional information on this week’s $4.5bn bond sale. The 6.0% coupon 2026 notes will feature amortization payments in each of the final three years, it says. The bonds will be sold in a private placement, with proceeds to be used for corporate finance and investment. Some $3bn is to be sold to PdVSA suppliers and the remainder placed with the country’s central bank. Officials at the state-owned oil producer were unable to provide additional details, including the exact timing of the transaction, which Oil Minister Rafael Ramirez had indicated in public remarks would be this week. The transaction is rated B. PdVSA has not issued bonds since a $3bn sale in May of 2012, and the Venezuela sovereign has been out of the market since 2011, according to Dealogic data. Analysts say the deal is done this week to come out ahead for the December mayoral elections – the government’s next big test of popularity, which they see deterioration along with the economy. “Polls are showing a strong decline in President Maduro’s approval rating, suggesting the possibility of a heavy defeat for the government in December’s mayoral elections. A large setback for the government here could further weaken Maduro’s leadership, limiting the government’s capacity to make the necessary economic adjustments,” Barclays says.
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Pemex to Visit Europe
Pemex is preparing to meet bond investors in Europe next week, according to people familiar with the matter. Starting Monday, the Mexican state-owned oil producer will visit London, Frankfurt, Amsterdam and Paris, finishing Wednesday. BBVA, Credit Suisse and HSBC are managing. A transaction may follow if market conditions permit. Pemex last issued in euros in 2009, pricing a EUR1bn 2017 at 99.311 with a 5.500% coupon to yield 5.623%, or mid-swaps plus 250bp. When laying out international issuance plans for 2013, company officials had said they would monitor the euro market as well as some South American currencies – Peru and Colombia the most likely – for potential issuance in addition to USD. Pemex also plans to become a more regular Mexican domestic market issuer. Its last visits to the international bond market were US Export-Import bank-backed deals in September and October, raising $350m and $750m.
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Ecopetrol Names CFO
Magda Manosalva has been named as CFO of Ecopetrol, the Colombian state-owned oil producer says. She was VP for finance and administration at refinery operator Reficar, until last month, and was previously Ecopetrol’s head of treasury. Manosalva replaces Mariana Echeverry.
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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.
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Mexican Leasing Company Completes ABS
Mexican equipment leasing company Arrendadora y Soluciones de Negocio has raised MXP550m ($44m) through a domestic accounts receivables securitization, according to bankers familiar with the transaction. The 4-year bond priced at TIIE+175bp, and total demand topped MXP596m. BBVA and Scotiabank managed the transaction, rated AAA on a national scale. It was the issuer’s first bond since a MXP300m sale last year, done at TIIE+160bp.