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.
Category: Regions
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.
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.
Peru Holdco Aims for Single Digits
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.
Avianca Set for ADS Debut
Avianca is scheduled to price today the equity follow-on marking the debut of the ADS representing preferred shares of the Avianca Holdings entity. The transaction is offering 12.5m primary ADS and 14.7m secondary ADS at $17.00-$20.00 each, meaning a $579m sale at the midpoint if a 15% all-secondary greenshoe is included. Each ADS represents eight Avianca Holdings preferred shares. The preferred shares were last seen trading at COP4,265 ($2.43) each, according to the Colombian Bolsa, or what would be $19.44 per ADS – though people following the sale expect it to price at a discount to the domestic shares’ level. The secondary portion is to be 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 are leading 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. The environment for Airline equity deals has been mixed, with Brazilian Azul electing to wait until next year for an IPO. Mexico’s Volaris has traded up more than 11% through Monday since a September IPO that came at the bottom of the range.
Moody’s Negative on Bancolombia
Moody’s has changed the outlook Bancolombia’s Baa3 ratings to negative, it says. The move follows a review initiated in February after Bancolombia agreed to buy HSBC Panama, which the agency sees possibly pushing the Colombian bank’s capital ratios down. Bancolombia closed the $2.23bn HSBC Panama deal, as well as the $217m purchase of 40% of Banco Agromercantil in Guatamala, last month. Moody’s says it expects capital ratios to stay low over the next 6-12 months, but adds that raising more capital would boost Bancolombia’s credit outlook. “The bank’s shareholders gave approval last February for a capital injection of about $2.2bn, which if carried out would improve Bancolombia’s loss absorption capacity,” Moody’s says.
HSBC Mexico Adds Equity Head
Francois Jaubert has joined HSBC Mexico as head of equity, where he will focus on sales and trading for the cash and derivatives business in the equities group, according to a person familiar with the move. He last worked at Deutsche Bank, where he was head of equities until November 2012, when he left to pursue personal interests. Prior to the six years Jaubert spent at Deutsche Bank, he worked 11 years at Merrill Lynch in a similar role.