A sell-off in Venezuelan sovereign bonds offers a buying opportunity, analysts say
Category: Regions
Posted inDaily Brief
BdB Targets Euroyen
Banco do Brasil has set its sights on a Japanese yen-denominated bond issue in the international market, according to people familiar with the issuer’s plans. Banco do Brasil, JPMorgan, Citi, Mizuho and Mitsubishi UFJ-Morgan Stanley are working on the transaction, known as a euroyen bond. The bank held non-deal fixed-income investor meetings in Asia in September with JPMorgan. CFO Ivan Monteiro told LatinFinance earlier this year the bank would focus on diversification of debt funding this year, with Japan and local LatAm currencies such as Chilean pesos among the options beyond euros and dollars. Banco do Brasil raised JPY24.7bn ($315m) though its first-ever euroyen transaction in September 2012. The 2015 priced at par to yield 1.80%, or yen swaps plus 146bp. Bank of America Merrill Lynch, Banco do Brasil, JPMorgan, Mizuho and SMBC Nikko managed that sale.
Posted inDaily Brief
Pipeline Operator Shops Debt
Mexico’s Gasoductos de Chihuahua has launched a $500m, 13.5-year project finance loan paying Libor+200bp, according to people familiar with the process. Bank of Tokyo-Mitsubishi and BBVA are leading the transaction for the operator of pipelines and other midstream assets in Northern Mexico. The borrower is raising funds to use in the construction of the Los Ramones I natural gas pipeline.
Posted inDaily Brief
Panama Airport ABS Aims GDN
Panama City’s Aeropuerto Internacional de Tocumen (AITSA) is understood to be working with Morgan Stanley for the placement of the GDN component of a 2023 structured bond, expected at $250m, according to a source familiar with the transaction. The first $400m portion of the $650m total was placed with Panamanian buyers, with the remainder to be sold in El Salvador and elsewhere in the international markets through a GDN, possibly before the end of this month. The BBB rated NC5 note backed by passenger departure tax revenues priced at par with a 5.75% coupon last month. The debt issued by AITSA is secured by a trust, to which passenger exit fees will be transferred. Prival Bank managed the first portion. The airport is the busiest airport in Central America based on passenger volume and the principal hub for Copa Airlines.
Posted inDaily Brief
Colombian Advances Dual-Currency Loan
Colombian pharmaceutical company Procaps has been shopping a $150m, 5-year dual currency loan, according to people following the transaction. The borrower is offering a dollar tranche at Libor+425bp and Colombian peso tranche at Libor+450bp. Manager tickets of $10m and 50bp and MLA tickets of $20m and 75bp are on offer. JPMorgan is leading the facility, with local banks are expected to play a significant role.
Posted inDaily Brief
Citi Peru Issues RMB Credit First
Citi Peru has issued a Chinese Renminbi-denominated letter of credit, the first bank in Latin America to do so, it says. Details were not disclosed, other than that it was an import letter of credit for under $1m from a borrower in the import sector. The transaction adds to the bank’s offerings for Latin and Chinese clients, creating another option for importers and exporters as has been done in Euros and yen, Othman Gamero, Citi’s structured trade sales head for Latin America, tells LatinFinance.
Posted inDaily Brief
Mexicans Ready to Kick off IPO Pipeline
Real estate plays Grupo Hotelero Santa Fe and Fibra Danhos are scheduled to price IPOs today targeting MXP4bn ($304m) and MXP6bn, respectively, as the October ECM issuance window gets underway. Hotel operator Santa Fe plans to sell 201m shares, if a 15% greenshoe is included, at MXP18.00-MXP22.00 each, meaning a MXP4.03bn size at the midpoint. The issuer expects 84% of the deal to consist of primary shares, and the remainder to be secondary shares sold by investors Nexxus Capital and Walton Street Capital. Santa Fe is raising funds to repay debt and for expansion. It expects a 49% free-float following the transaction, not counting the greenshoe, with 37.5% held by developer Grupo Chartwell, 8.3% by Nexxus and 5.3% by Walton Street. Barclays and JPMorgan are managing the international portion of the transaction, and BBVA and Santander the Mexican portion. Santa Fe operates 10 hotels in five Mexican states, including a mix of city and beach resort properties, under brands including Hilton, Hampton Inn, Hyatt and Krystal. Danhos, meanwhile, offers 200m shares at MXP26.00-MXP28.00 each, according to offering documents, meaning a MXP6.21bn sale at the midpoint if a 15% greenshoe is included. The transaction includes both Mexican and international tranches. The fund begins with four shopping centers, four office buildings and three mixed-use properties, all in Mexico City, and is raising money to expand them and to add to the portfolio. BBVA and Goldman Sachs are global coordinators on the transaction, with Evercore as structurer and domestic bookrunner and Banorte-Ixe and Inbursa as co-managers.
Posted inDaily Brief
Pemex to Meet Revolver Lenders
Pemex is schedueled to hold a bank meeting Wednesday for a $1.25bn 3-year revolver, according to people familiar with the process. The Mexican state-owned oil company is looking to refinance a similar facility coming due in November. HSBC, Natixis, Mizuho and Sumitomo Mitsui are leading the deal.
Posted inDaily Brief
Grupo Argos Replaces Debt
Colombia’s Grupo Argos has closed a COP100bn ($53m) bilateral loan with Helm Bank, it says. The 5-year credit has an undisclosed, IBR-linked interest rate and replaces a prior loan coming due in September 2016 tied to the DTF.
Posted inDaily Brief
Grupo Elektra Preps Domestic
Mexico’s Grupo Elektra has filed a shelf to issue up to MXP10.0bn ($757m) in the domestic bond market, according to regulatory documents. It has not yet indicated details about the first transaction. Actinver has been hired in association with the program. The Mexican financial and retail company last priced a MXP3.5bn 2016 floating-rate bond at TIIE+280bp in June. Actinver was sole lead on the deal, rated A/AA on a national scale. Controlled by billionaire Ricardo Salinas, Elektra is a holdco for subsidiaries including Banco Azteca, Seguros Azteca and Afore Azteca.