Empresa Nacional del Petroleo (ENAP) has raised CHF215m ($235m) through its first-ever Swiss Franc bond sale, one of two Chilean CHF deals Wednesday, along with Banco de Chile. The state-owned oil company priced the 2018 at 99.885 with a 2.875% coupon to yield 2.900% or MS+228bp, 12bp tighter than initial price thoughts of MS+240bp. Pricing was in line with secondary levels seen on comparable dollar credits with ENAP paying about 20bp premium to access the CHF market, according to a banker familiar with the trade. After evaluating the USD and CHF bond markets, the Chilean opted for CHF given size of its funding needs and taking into account what it would have to pay in the USD bond market for the illiquidity of a smaller trade. The deal drew 2x demand, with 100 accounts heard participating, including private banking, retail accounts, asset managers, insurance companies and pension funds. Credit Suisse managed the A/BBB minus/Baa3 transaction, the first ever in the CHF market by a non-financial Chilean issuer, according to Dealogic data. ENAP previously tapped Chile’s local bond market this year, issuing UF6m ($289m) in Chile’s domestic bond market in January, through a UF2m, 5-year bullet tranche which priced at 98.54 with a 3.4% coupon to yield 3.75%, or government bonds plus 113bp and a UF4m, 21-year bullet tranche priced at 94.70 with a 3.7% coupon to yield 4.09%, or government bonds plus 133bp.
Category: Regions
Consubanco Talks ABS Price
Price talk for Consubanco’s MXP1bn ($76m) domestic ABS is TIIE+180bp-200bp area, according to people familiar with the deal. The Mexican bank is selling 5-year floating-rate bonds securitized by payroll deduction loans. Pricing is expected November 15, after the issuer had initially considered pricing this week. The lender plans to use proceeds for general corporate purposes. Scotiabank is managing the deal, rated AAA on a national scale. In May, it sold MXP600m in its domestic bond market debut, getting a TIIE+300bp level on a 2015 bond.
Inbursa Taps Local Market
Mexico’s Banco Inbursa has priced MXP11.5bn ($873m) in 2017 bonds, according to people familiar with the matter. The bonds priced at TIIE+27bp, in line with TIIE+27bp-area guidance. The Carlos Slim bank saw demand of about MXP13bn. Inbursa plans to use the funds to improve its liquidity profile and for general banking purposes. Inbursa, Bank of America Merrill Lynch, Finamex, Banamex, BBVA Bancomer, Banorte-Ixe and Actinver managed the transaction, rated AAA on a national scale.
Mexican Miners Set for Bonds
Mexican miners Cobre del Mayo (CDM) and Fresnillio were each expected to price new bonds as soon as today, according to people following the transactions. Copper miner CDM was heard with more than $200m demand for a $200m-$250m 5-year bond, following 11%-area guidance given Wednesday. A deal would represent the international bond market debut for the B3/B credit. CDM is raising funds to refinance most of its $210m total debt. To determine pricing, CDM has been looking to single-B credits like Marfrig’s 2020, seen trading around 10.3%, and Gol’s 2020, trading around 11.5%. Jefferies, BCP Securities and Nomura are managing the RegS-only process. The issuer operates Mexico’s third-largest copper mine, Piedras Verdes. Separately, Fresnillo was expected with initial details on the sale it had been marketing through Wednesday. The BBB/Baa2 silver and gold miner was considering issuing both 10-year and 30-year bonds, with a $300m size per tranche, according to an investor following the deal. Citi, Deutsche Bank and JPMorgan are managing.
America Movil Ponders Titulos Retap
Mexico’s America Movil is preparing the next reopening of its titulos de credito extranjero global peso securities, according to people familiar with the plans, with a transaction possible as soon as this week. The Carlos Slim telecom aims to tap the securities – offering seamless sale to international and domestic investors – once per quarter, though it had to hold off due to broader market volatility in the middle of the year. Plans earlier this year were for the next retap to be up to MXP10bn ($759m). America Movil first sold MXP15bn in the 2022 bonds in November, and retapped in February for MXP7.5bn. The legal platform established by the new asset class allows for more flexibility than regular Mexican local bonds, meaning the issuer can decide to come to market quickly, or wait if conditions aren’t there. HSBC, Deutsche Bank and Morgan Stanley would be expected to manage, given the issuer’s policy of rotating banks on the program, with BBVA Bancomer, Banamex and Credit Suisse as passive bookrunners. The senior unsecured bonds are SEC and CNBV registered, denominated and settled in MXP, and trade on a fungible basis in the international markets and Mexico. They are rated AAA on a national scale and A2/A/A minus internationally.
Developer Launches Mall Fibra
Mexican developer Grupo Acosta Verde is targeting more than MXP5.0bn ($380m) in the IPO of its Fibra, pricing November 20. The Fibra Sendero shopping mall-focused real estate fund is offering 264m shares, assuming a 15% greenshoe, at MXP20.00-MXP25.00 each, meaning a MXP5.28bn transaction at the midpoint. The all-primary share deal is to include both Mexican and international tranches, with the size of each determined at pricing. Sendero starts with 10 operating malls spread throughout five Mexican states, and aims to acquire land to develop six more. The malls are focused on the middle and lower-middle classes, also known as C and D classes. BBVA and JPMorgan are global coordinators on the sale, with UBS also on the international portion and Banorte-Ixe managing the local portion.
Inbursa Talks MXP Price
Mexico’s Banco Inbursa is looking to pay TIIE+27bp-area on domestic bond scheduled to price today, according to people following the transaction. The Carlos Slim bank is targeting MXP11.5bn ($876m) in 3.7-year bonds, in order to raise funds to improve its liquidity profile and for general banking purposes. Inbursa, Bank of America Merrill Lynch, Finamex, Banamex, BBVA Bancomer, Banorte-Ixe and Actinver are managing the transaction, rated AAA on a national scale.
Mexican Blue Chips Close in on Large Domestic Sales
Mexico’s Grupo Televisa and Comision Federal de Electricidad (CFE) are each considering pricing a domestic bond sale as soon as this week, according to people following the transactions. Televisa is planning to raise up to MXP10bn ($766m) in the domestic bond market this week, say bankers familiar with the process. The broadcaster is considering 10-year and 15-year notes. Proceeds will be used to refinance debt and for general corporate purposes. Banamex, BBVA Bancomer and Santander are managing the sale, rated AAA on a domestic scale. Separately, CFE is said to have decided against pricing today, but could still do a deal as soon as Thursday or Friday. The government utility is planning to raise up to MXP10bn ($766m) in 5-year floating-rate notes and 10-year fixed-rate notes. Banorte-Ixe, BBVA Bancomer, Santander and HSBC are managing the sale, rated AAA on a domestic scale.
Mexican Miner Looking at Dual Tranche
Mexico’s Fresnillo is considering issuing both 10-year and 30-year bonds, with a $300m size per tranche, according to an investor following the deal. The issuer has not issued initial price thoughts or guidance as of Tuesday. The BBB/Baa2 silver and gold miner is scheduled to end a roadshow process today in New York and could price a deal as soon as Thursday. Citi, Deutsche Bank and JPMorgan are managing. In April, the miner sold GBP222m ($344m) in shares to shareholder First Eagle Investment Management, to meet a free-float obligation. It has not issued bonds internationally or in Mexico’s domestic market, according to Dealogic data.
Avianca ADS Land Below Range
Avianca has priced the debut of ADS representing preferred shares of the Avianca Holdings entity below the range, and should raise $408m. The total demand was not immediately available late Tuesday. The airline is selling 12.5m primary ADS and 14.7m secondary ADS, assuming a 15% all-secondary share greenshoe, at $15.00 each, according to people familiar with the transaction. The price comes versus a $17.00-$20.00 range, and a COP3,945 ($2.06) close Tuesday of the preferred shares, that suggested a level of $16.48 per ADS. Each ADS represents eight Avianca Holdings preferred shares. The discount to the local shares was somewhat anticipated, according to people following the sale, based on the lower domestic liquidity levels. The secondary portion is sold by former Taca executives Juaquin Palomo and Alfredo Ratti and the entities representing the controlling Eframovich brothers and Kriete family. The Eframovich brothers should control a position equal to 78% of the common stock following the deal. The Panama-domiciled Colombia-listed holdco is raising funds to modernize the Avianca-Taca fleet. JPMorgan and Citi led the transaction, joined by UBS, BTG Pactual and Deustche Bank. Avianca and Taca merged in 2010, and the domestic IPO of the preferred shares raised $283m-equivalent in 2011.