The Central American Bank for Economic Integration (Cabei) plans to raise up to MXP2bn ($154m) through a bond sale in Mexico’s domestic market, according to S&P which assigns a AAA domestic rating. The 2016 bond will pay a spread to the TIIE. JPMorgan is managing the transaction, according to people following the sale. The bank sees current swaps as very attractive, and while it doesn’t need funding in MXP, a transaction would represent an opportunistic trade. The well-traveled borrower is considering issuance in a range of currencies and markets this year, fulfilling plans to raise some $800m in the markets this year. The bank is also mulling a Taiwanese dollar or offshore renminbi issuance in Taiwan. Last month it raised CNH500m ($80m) in its first-ever offshore renminbi bond deal, pricing at par with a 3.20% coupon.
Category: Regions
AES Panama Lowered
S&P has downgraded AES Panama to BB+ from BBB minus, it says, due to a less favorable risk profile.The agency finds that the hydroelectric generator’s business and financial risk profiles have weakened due to changes in its power purchase agreement with sister company AES Changuinola. The outlook is stable.
Panama Emerges with LM
The Republic of Panama has launched a three-day cash tender offer targeting holders of its $962m outstanding in 7.25% 2015 bonds, it says. The sovereign is offering $1,091 per $1,000 principal through Tuesday. Liability management has been a strong theme for sovereigns in LatAm this year, and Panamanian officials have previously indicated they would be interested in joining in. Last year, Mahesh Khemlani, then Panama’s vice minister of finance, told LatinFinance the sovereign had looked at its 2015 dollar bonds as a starting point. Panama is not specific about what it could sell to raise funds for the cash tender, noting only that Friday’s tender is “conditioned upon settlement of an issue of local Panamanian bonds or other financing, or a combination.” Citi and JPMorgan are dealer managers. Panama, rated Baa2/BBB/BBB was last in the dollar bond market in April when it priced a $750m 40-year bond.
Fibra Names CFO
Terrafina has named Angel Bernal as CFO, it says, effective December 15. He will report to Alberto Chretin, CEO of the trust focused on industrial properties. Bernal joins from LaSalle Investment Management Mexico, where he was vp and acquisitions officer. He replaces Francisco Navarro.
Fitch Raises Mexichem
Fitch has upgraded Mexichem’s rating to BBB from BBB minus, it says, based on a strong business and financial profile. The Mexican petrochemical producer has doubled in size since 2009, through organic growth and acquisitions. The agency calls Mexichem’s credit metrics “strong,” and expects net leverage will remain within the management’s 2.0x target. “Mexichem’s financial profile is underpinned by its recurring positive free cash flow and its strong business profile as a leading vertically integrated chemical and petrochemical company in Mexico, with a geographically diversified operating base and low cost structure,” Fitch says. Total debt to Ebitda for the 12 months ended September 30 was 2.5x and net debt to Ebitda 1.1x. The outlook is stable.
Fovissste Plans RMBS
Mexican government-backed housing lender Fovissste plans to raise up to MXP4.6bn ($357m) through a domestic RMBS sale in December, according to a regulatory filing. The planned 29.5-year fixed-rate bond is denominated in UDIs. Proceeds will fund lending. Actinver, Banorte-Ixe, and CI Casa de Bolsa are managing the sale, rated AAA on a national scale. Fovissste last visited the local market in October, raising MXP4.6bn in a UDI-denominated 2039 issue which was priced at 3.23%, or Udibonos+185bp.
Sigma Readies IPO Papers
Mexico’s Sigma Aliementos has made the initial filing for its IPO process, according to regulatory documents. The Grupo Alfa subsidiary has hired Citi, Goldman Sachs, Bank of America Merrill Lynch and Banorte-Ixe. The size and timing remain unclear, though a filing now leaves open the possibility to get a deal done before the end of the year. The filing follows last week’s unveiling of a EUR675m ($908m) bid for European meat company Campofrio Food Group.
Bridge in Hand, CFR Makes Adcock Bid
Chile’s CFR Pharmaceuticals has formally bid ZAR12.6bn ($1.2bn) for South African drug maker Adcock Ingram, and has secured a $600m bridge loan to help, it says. CFR has support of shareholders holding 45% of Adcock, and claims letters of support from another 7.5%. It needs to reach 75% for success, and a pension fund holding 19% has come out against the deal. It would pay cash for 51.0%-64.2% of Adcock, and settle the rest with new CFR shares. The ZAR73.51 per share offer price represents a premium to Friday’s ZAR69.30 close. CFR says it has a $600m bridge loan ready to go from BBVA, Santander Chile, Bancolombia and Bank of America. Credit Suisse is advising CFR, with IMTrust providing an evaluation of Adcock shares. Deutsche Bank is advising Adcock, with JPMorgan providing a fairness opinion. The deal is expected to generate revenue and cost synergies of up to $440m, would see Adcock delisted from Johannesburg, where CFR would have a secondary listing. In addition to the bridge funds, CFR is preparing a $750m equity capital raise.
Codensa Places Well Bid Domestic Bond
Codensa has raised COP275bn ($143m) in Colombia’s domestic bond market, according to people following the sale. The electric distributor priced a COP166.4bn 2018 tranche at IPC+3.92, inside a 4.40% limit, and a COP108.6bn 2025 portion at IPC+4.80%, inside a 5.40% limit. Total demand reached COP900bn. Codensa is raising proceeds to pre-finance upcoming bond maturities. Corredores Asociados, Bancolombia, Correval and BBVA managed the deal, rated AAA on a local scale.
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.