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.
Category: Regions
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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.
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Banco de Chile Returns for CHF Funds
Banco de Chile has returned to the Swiss bond market to raise CHF175m ($191m), according to people familiar with the transaction. The 2019 bond represents the Chilean lender’s fourth-ever CHF issuance, and priced at 100.251 with a 1.500% coupon to yield 1.535% or mid-swaps plus 70bp, in line with MS+70bp guidance. BNP Paribas and Deutsche Bank managed the Aa3/A+ sale. Banco de Chile previously raised CHF225m in the Swiss bond market in June, pricing a 2016 floating-rate bond at Libor+60bp.
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ENAP Heads to Switzerland
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.
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Guatemalan Prices Bond Debut
LatAm high-yield and split-rated borrowers continue to enjoy market access, with Banco de los Trabajadores (Bantrab) raising $150m in its international debut bond sale. The Guatemalan bank drew 2x demand for the 2020 note, allowing it to print at the tight side of initial price thoughts. Bantrab priced at par with a 9.0% coupon, tight to 9.0%-area guidance and earlier low-9% talk. The bond traded up 1.0 points Wednesday afternoon, according to a trader. The Ba3/BB minus lender based pricing on investor feedback, in addition to Guatemalan reference points including Cementos Progreso’s 2023 bond, seen trading to yield 6.94%-6.90%, and Banco Industrial’s (Baa3/BB) 2022, trading to yield 6.50%-6.40%. Bantrab is raising funds to refinance debt and support growth efforts. Deutsche Bank and BCP Securities managed the deal, done through a Cayman Islands SPV. Elsewhere in the dollar bond market, Peru’s Andino Investment Holding (AIH) was expected to price today, after indicating 10%-area price talk Monday for a $130m 2020 NC3 bond and targeting pricing as soon as Wednesday. Bank of America Merrill Lynch, Credicorp and Goldman Sachs are managing the B+/BB minus transaction.
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Sugar Producer Targeting $400m
Guatemalan sugar producer and exporter Ingenio Magdalena is looking at a $400m bond transaction, according to Fitch, which assigns a BB minus rating. The debut issuer was scheduled to market a 5-10 year bond through today. No initial price talk had been issued as of late Wednesday. The issuer is raising funds to refinance existing debt and for general corporate purposes. The proposed bonds will have the guarantee of certain subsidiaries that represent approximately 94% of the company’s total assets and close to 100% of consolidated Ebitda, the agency says. Fitch notes a “solid position” in the sugar exporting and biomass power generation sectors, weighed down by presence in a cyclical industry and $136m capex needs in 2013-2015 that should mean negative free cash through 2014. Citi and JPMorgan are managing the BB minus/BB minus transaction.
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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.
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ISA Adds in Brazil
Interconexion Electrica (ISA) has agreed to acquire Nelson Quintas Telecomunicacoes in Brazil for BRL190m ($83m), it says. Acting through its Internexa Brazilian subsidiary, the Colombian obtains a fiber-optic network in Rio de Janeiro. Internexa plans to borrow funds in Brazil to finance the purchase, it says. ISA was already present in Brazil through the CTEEP electricity transmission company.
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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.
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Guatemalan Sets Target
Banco de los Trabajadores (Bantrab) is out with 9%-area guidance for a new $150m 2020 bond expected to price today, according to people following the transaction. The guidance comes on the tight side of low-9% initial price thoughts. 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. Also scheduled to price today is Peru’s Andino Investment Holding (AIH), which has had indicated 10%-area price talk Monday for a $130m 2020 NC3 bond. It was heard gathering at least $50m demand as of late Tuesday. Bank of America Merrill Lynch, Credicorp and Goldman Sachs are managing the B+/BB minus transaction. The remainder of the week should see Mexican miners Fresnillo and Cobre del Mayo, as well as Brazilian ammunition maker CBC Ammo.