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.
Category: Regions
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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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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.
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Salsa Maker Prices Local Bond
Grupo Herdez has issued MXP3bn ($230m) in fixed and floating-rate domestic bonds, according to people familiar with the transaction. The maker of salsas and other food products priced a MXP2.0bn 10-year fixed rate bond at 8.02%, or Mbonos+170bp, at the wide end of 160bp-170bp guidance. It also priced a MXP1.0bn 5-year bond at TIIE+54bp, in line with guidance. The issuer is rated AA on a national scale, and is raising proceeds to improve its debt profile and for general corporate purposes. BBVA Bancomer and HSBC managed. The borrower’s previous domestic deal was a MXP600m 2015 bond done in 2011 at TIIE+60bp.
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Petrobras Sells Peru Assets to China
PetroChina has agreed to acquire Petrobras’ Peruvian oil and gas assets for $2.6bn, Petrobras says. The Petrobras Energia Peru subsidiary has three oil and gas fields in Peru, producing about 800,000 tons oil-equivalent a year. The sale comes as a part of a series of asset sales, recently including the September sale of oil blocks and pipelines in Colombia to Perenco UK for $380m. Citi advised Petrobras and Deutsche Bank advised PetroChina, according to Dealogic data. Separately, the Brazilian state-controlled oil company is eliminating the Petrobras International Finance Company (PIFCo), which was responsible for issuing in the bond markets during 2001-2012. The unit’s assets will be merged either back into the parent or into the Petrobras Global Finance BV subsidiary.