Peru’s Andino Investment Holding (AIH) is heard starting at 10%-area initial price talk for a $130m 2020 NC3 bond, according to sources close to the deal. Pricing could come as soon as Wednesday. The trade and transport-focused holdco is looking for funds to repay $86.5m in bank debt and finance $43.5m in capex. Bank of America Merrill Lynch, Credicorp and Goldman Sachs are managing the B+/BB minus 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.
Category: Regions
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Bank Reveals Yield Target
Banco de los Trabajadores (Bantrab) is looking at a yield in the low-9% range for a new $150m 2020 bond expected to price Wednesday, according to people following the transaction. The Ba3/BB Guatemalan lender completed a European, North American and Central American roadshow last week. Bantrab is seeking funds to refinance debt and support its growth efforts. Deutsche Bank and BCP Securities are managing the deal, done through a Cayman Islands SPV. When assigning its rating, Fitch cites improved asset quality, an ample net interest margin and moderate but sustained profitability ratios. Bantrab was established in 1965 and is mainly retail-oriented and focused on consumption loans to low and middle-income employees. It is currently the sixth-largest bank in Guatemala in terms of assets. An international bond would be only the second-ever from a Guatemalan bank, according to Dealogic data, following Banco Industrial’s $500m sale last year.
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Fibra Uno Readies Local Bond
Mexico’s Fibra Uno real estate trust is planning to issue up to MXP10bn ($766m) in what would be the first-ever domestic bond placed by a Fibra fund, say bankers familiar with the deal. The real estate fund is considering up to three tranches, in tenors ranging from 5 years to 20 years in fixed-rate or Udi-denominated bonds, and is preparing a roadshow this month, a banker familiar with the process says. 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.
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Mexican Looks to IPO
Mexico’s BanBajio is planning an IPO, likely in 2014, according to a person following the process. The lender has hired Bank of America Merrill Lynch, BBVA, Citi and Morgan Stanley to manage. The bank specializes in SME, consumer credit and mortgage financing. Last year a group of international investors including Singapore’s Temasek bought a 20% stake in Bajio for $208m, in a transaction representing the exit of Spain’s Banco Sabadell.
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Televisa to Add Local Debt
Mexico’s Grupo Televisa plans to raise up to MXP10bn ($766m) in the domestic bond market, as it continues a roadshow this week, say bankers familiar with the process. Under consideration are 10-year and 15-year fixed-rate 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. Televisa raised MXP6.5bn from the sale of global-local titulos de credito extranjero in May, getting 30-year funds at 7.27%, or Mbonos+185bp.
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Sugar Producer to Meet Investors
Guatemalan sugar producer and exporter Ingenio Magdalena plans to start fixed-income investor meetings today, according to people familiar with the matter, ahead of what would be a debut international bond. The BB minus/BB minus issuer is visiting London, Boston, New York and Los Angeles and finishing Thursday. Citi and JPMorgan are managing. The borrower was also working on a $100m 3-year, amortizing pre-export finance facility with a group of banks led by Bladex.
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CFE Wants Domestic Bond This Week
Mexico’s Comision Federal de Electricidad (CFE) plans to raise up to MXP10bn ($766m) in a two-tranche domestic bond sale, now set for Wednesday, instead of next week, according to people following the sale. The proposed 5-year notes would pay a spread to the TIIE and additional 10-year notes a fixed-rate. The issuance falls under a MXP100bn program, and is to be managed by Banorte-Ixe, BBVA Bancomer, Santander and HSBC. The government electricity monopoly’s most recent domestic bond was in June, when the issuer priced a MXP12bn ($911m) floating rate note via Banorte-Ixe, HSBC and Santander. CFE is rated AAA on a national scale.
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Aval Prefers Domestic Equity Route
Colombia’s Grupo Aval is preparing to sell COP2.4trn ($1.27bn) in shares through an equity follow-on in the domestic market, it says. Given the conglomerate’s recent M&A activity, such a sale had been expected by the markets, though perhaps through the SEC process for which it registered earlier this year. The plan to issue in the US market will be postponed as Aval focuses first on this local sale, a spokeswoman says, noting that banks have not yet been hired. Aval does not give additional details. Corficolombiana, part of Aval, would be expected to manage the deal, as it did Aval’s last domestic equity transaction along with Corredores Asociados. A tap of the more familiar domestic investor base, where Aval can anchor with preemptive rights, might allow for the issuer to better control its pricing, say ECM bankers observing the process. “This announcement is a negative for Aval’s shares. Further, given the high trading and forward multiples of [Aval] today, the primary market could demand a considerable discount,” Credicorp says, noting a need for funds to support a busy M&A agenda. Aval completed in April the purchase of BBVA’s Horizonte Colombian pension operation for $530m, and is working on closing the $411m purchase of Guatemala’s Reformador and the $646m purchase of BBVA Panama, both expected to finalize as soon as November. An equity sale might be good for Aval’s bondholders, however, Credicorp says. “The recent M&A activity was constraining severely Grupo Aval’s unconsolidated cash position. This issuance then will improve the conglomerate’s financial health, and lowers the likelihood of further debt offer,” it says. Aval’s last equity deal was a $1.17bn-equivalent domestic follow-on in 2011. It had been seeking the SEC deal since, but has been content funding itself in the international bond market, including $1.6bn last year and $500m this year through its Banco de Bogota subsidiary. JPMorgan, Goldman Sachs, Citi and Morgan Stanley had been hired in asso
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Broker Taps Mexican Bond Market
Brokerage firm Grupo Bursatil Mexicano (GBM) has issued MXP1.2bn ($92m) in domestic bonds, according to people familiar with the transaction. The bond priced at TIIE+55bp, in line with TIIE+55bp guidance. Proceeds from the 3-year note will be used to replace existing debt and for working capital purposes. BBVA Bancomer, HSBC and GBM managed the transaction, rated AA on a national scale. The deal follows a May sale, in which the issuer priced a MXP650m 1.2-year floating-rate bonds at TIIE+25bp.
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Chinese Clinch BicBanco Deal
China Construction Bank has agreed to buy Brazil’s BicBanco for BRL1.62bn ($723m), BicBanco says, bringing rumors to life and giving one of China’s largest banks its first foothold in Brazil. The deal for the 72% stake – consisting of 157m common and 25m preferred shares – comes at BRL8.90 per common or preferred share. This represents a premium to the respective BRL7.38 and BRL7.50 closing prices Thursday. The price is subject to adjustments. Following necessary approvals, CCB would move ahead with a public offer for the remainder of the bank’s shares. Citi advised the seller. CCB’s previous attempt to enter Brazil was a 2012 agreement for WestLB’s assets in the country. When the deal fell through, the WestLB operations went to Mizuho.