The Central American Bank for Economic Integration (Cabei) has raised CHF275m ($299m) in dual-tranche bonds, according to a person familiar with the deal. A CHF130m 2016 bond priced at 100.28 with a 0.625% coupon to yield 0.665%, or mid-swaps+45bp. A CHF145m 2019 bond priced at 100.65 with a 1.500% coupon to yield 1.465%, or mid-swaps+65bp. Proceeds will be used for general funding purposes. Credit Suisse managed the transaction, rated A/A2/A. Cabei now turns to the Mexican domestic bond market, and is looking at a $150m-equivalent bond with a tenor of 3 or 4-years. Cabei is also targeting a $50m 15-year bond through a private placement in the dollar market before the end of the year. Looking farther ahead, Cabei is considering issuance in a range of other international markets, including Australian dollars. In January, Cabei raised CHF150m ($164m) in new 2020 bonds, in its first deal in Switzerland since 2010.
Category: Regions
Guatemalan Clinches A/B Loan
Banco Agromercantil de Guatemala (BAM) is receiving a $100m senior unsecured A/B loan led by the Netherlands Development Finance Company (FMO), it says. A $50m, 7-year tranche from FMO and Germany’s DEG comes at Libor+425bp. A $50m 5-year commercial bank tranche pays Libor+400bp, and includes participation from Westtrust Bank, Davivienda El Salvador, Global Bank, Interbanco, Banco Aliado, Banco Ficohsa and BICSA. Their participation levels were not disclosed. The loan will be used to enhance BAM’s long-term lending capabilities, with a focus on renewable energy projects, as well as SME and private sector growth in Guatemala and Central America.
Vale Cutting Aluminum Stake
Vale is preparing to sell a stake of as much as 12% in Norwegian aluminum producer Norsk Hydro, it says, which could fetch more than $1bn. Vale is selling up to 246m shares, including an overallotment option, through an accelerated bookbuilding process launched Monday. The block of shares would be worth NOK6.63bn ($1.08bn) at Monday’s NOK26.96 closing price. Morgan Stanley and DNB are slated to manage the transaction, according to a person familiar with it. The sale could take Vale’s stake in Norsk to 201m shares, or 9.7%, and is part of a divestiture plan to help the Brazilian miner cope with lower commodity prices that have meant leaner profits. In September, it sold stakes in its VLI cargo unit to a Caixa Economica Federal fund and Japan’s Mitsui for a total of BRL2.71bn ($1.2bn). This followed $1.47bn of divestments in 2012. Vale’s 22% position in Norsk Hydro comes from a $5.27bn 2011 sale of its bauxite and aluminum assets in Brazil to Norsk.
CFE Defines Pricing Expectations
Mexico’s Comision Federal de Electricidad (CFE) is looking to pay Mbonos+130bp-140bp for the 10-year portion of a domestic bond sale scheduled to price Wednesday, according to people following the transaction. The government electricity monopoly is targeting up to MXP10bn ($766m) through the 10-year fixed-rate portion and a 5-year tranche paying a spread to the TIIE. The issuance falls under a MXP100bn program, and is to be managed by Banorte-Ixe, BBVA Bancomer, Santander and HSBC. CFE’s most recent domestic bond was in June, when the issuer priced a MXP12bn ($911m) floating rate note via Banorte-Ixe, HSBC and Santander. It is rated AAA on a national scale.
DF Preps Domestic Debt
The government of Mexico’s Distrito Federal will look to issue up to MXP3bn ($227m) in the domestic bond market November 21, according to a selling memo. The 10-year fixed-rate bonds are backed by future revenues passed down from Mexico’s federal government. The capital’s government is raising money to fund infrastructure projects and to repay debt. Santander is managing the transaction, rated AAA on a national scale. In November of last year, DF sold MXP2.5bn in 15-year bonds at 6.85%, or Mbonos+85bp.
Fibra Looking to Go Large with Local Bond
Mexico’s Fibra Uno real estate trust is targeting MXP13bn-MXP18bn ($983m-$1.3bn) in what would be the first-ever domestic bond placed by a Fibra fund, say bankers familiar with the deal. It had initially targeted MXP10bn. The real estate fund is considering up to four tranches and may choose among a 5.5-year floating rate bond, 10-year and 20-year fixed-rate bonds and 15-year UDI-denominated notes. Proceeds will be used to refinance bank debt. BBVA Bancomer, Banamex, Credit Suisse and Santander are managing. Fibra Uno’s CFO Javier Elizalde told LatinFinance in June it was plotting a domestic bond issuance this year, with the issuer previously relying on banking lines for leverage. The fund was Mexico’s first Fibra to IPO, in 2011.
Italian Seeks Argie Sale
Telecom Italia has received an offer worth $1bn for a stake in its Argentina unit, it says. The shedding of the 22.7% stake is part of a larger plan to raise funds that included a EUR1.3bn ($1.74bn) convertible bond sale. The company does not make any comments about strategy for its largest LatAm asset, a majority stake in Brazilian mobile phone operator TIM Participacoes – which has also been the subject of speculation.
AIH Discloses Demand
Peru’s Andino Investment Holding (AIH) saw $142m in total demand for its $115m 2020 bond issued last week, it says. The issuer widened pricing last week to a final 11% from earlier 10%-area indications, and issued less than the anticipated $130m size Thursday. The B+/BB minus issuer priced at par with a 11.0% coupon, according to people following the sale, which had initially been expected to price Wednesday. The trade and transport-focused holdco is raising funds to help repay $86.5m in bank debt and finance $43.5m in capex. Bank of America Merrill Lynch, Credicorp and Goldman Sachs managed the transaction. Last year, AIH raised $43m in the ECM and sold $110m in bonds at its Terminales Portuarios Euroandinos unit, in a sale managed by Goldman Sachs.
Peruvian Brings Novel Hotel Securitization
Peru-based property owner Inversiones La Rioja has priced a $40m domestic market securitization, according to people following the transaction. The 20-year notes with a 10-year grace period are backed by the cash flows and assets of the JW Marriott hotel in Lima, and priced at par with a 7.28% coupon. The transaction, which drew 2.25x demand, saw strong participation from insurance companies and pension funds. Proceeds will go to developing new properties and to pay older debt. Scotiabank managed the transaction, rated AA/AA on a national scale. A person working on the deal says it is the first hotel-based bond in Peru, and likely the first single-asset hotel securitization in LatAm.
Alsea Looks for Acquisition Funds
Mexico’s Alsea has approached regulators for an equity sale, it says. The proceeds would be used to repay short-term debt used in the $627m purchase of Wal-Mart de Mexico’s restaurant unit agreed in September. It does not give additional details. Bank of America Merrill Lynch advised Alsea on the purchase. Alsea held an IPO in 1999, and has come back to the market twice, most recently in 2012 to raise $88m.