Ford Credit de Mexico has sold MXP2bn ($156m) in 2014 bonds in the domestic market, according to sources familiar with the transaction. The auto finance services company priced at TIIE+69bp, inside of TIIE+75bp price talk. The deal was heard 2x oversubscribed with 100 bids. Actinver, HSBC, Banorte-IXE and Scotiabank managed the transaction, rated AA/Aa3 on a national scale.
Category: Regions
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Inbursa Clinches Domestic Bond
Mexico’s Banco Inbursa has raised MXP5bn ($389m) in the domestic bond market, according to sources familiar with the transaction. The 2015 notes priced at TIIE +25bp, in line with TIIE+23bp-25bp price talk. Proceeds will be used to increase liquidity and grow the bank’s credit portfolio. The bank has issued MXP13bn this year in the domestic market. Inbursa, Banamex, Banorte-Ixe and Actinver managed the transaction, rated AAA on a national scale. Inbursa last issued in May, selling a floating-rate note paying the TIIE+25bp.
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BdB Adds Asia Greenshoe
Banco do Brasil has added $175m to its 10-year senior bond, exercising the 10% greenshoe option during Asian market hours and bringing the total issue size to $1.93bn. Banco do Brasil priced the new 2022 senior unsecured bond Tuesday at 98.978 with an 3.875% coupon to yield 4.000%, or UST +237bp, tight to 4.125%-area guidance revised from earlier 4.375%-area initial talk. Banco do Brasil, BNP Paribas, Bradesco, BTG Pactual, Citi and JPMorgan led the transaction, with Banco Safra and Mizuho as co-managers.
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Pinfra Set for FO
Promotora y Operadora de Infraestructura (Pinfra) is scheduled to price an equity follow-on today and was heard late Wednesday with books covered. The Mexican infrastructure firm is selling 70.4m shares, including a 15% greenshoe, suggesting a MXP4.89bn ($381m) sale at Wednesday’s MXP69.51 closing price. About 70% of the shares are secondary shares to be sold by members of the Penaloza family and various investment funds, with primary proceeds going toward general corporate purposes, including greenfield and brownfield construction. The sale also aims to increase the liquidity of the issuer’s shares, which trade relatively infrequently. Pinfra had filed earlier this year aiming for a sale in the June-July window, but decided to wait until 4Q. Credit Suisse and JPMorgan are managing the international portion, and are joined by Banorte-Ixe on the domestic side. Founded in 1969 as Grupo Tribasa, Pinfra develops and operates road and port concessions and produces materials used in road construction. The sale is to be the first in a series of Mexican equity offerings following Santander Mexico’s $4bn IPO, with Mexichem scheduled for a $1.2bn-equivalent follow-on October 9 and Credito Real with a $200m-equivalent IPO October 16.
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Sanluis Puts Brakes on Bond
Mexican vehicle parts manufacturer Sanluis has postponed plans to raise funds in the international bond market, according to people following the 2022 NC5 bond transaction. After widening the yield target to 10%-area from initial high 9% talk, the issuer was heard generating close to $200m in orders. “The company decided to postpone due to the market not meeting its pricing expectations,” says a person familiar with the transaction. The issuer is heard satisfied with explaining its story and its improvement in credit metrics following a 2011 debt restructuring, and could consider another DCM attempt. Sanluis was looking to raise $200m-$250m in order to refinance debt. Bank of America Merrill Lynch and JPMorgan were managing the Ba3/B/B+ transaction.
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Scotia Names Mexico Head
Scotia has named Troy Wright as president and CEO of its Grupo Financiero Scotiabank Mexico unit, it says. Wright had been the Canadian bank’s executive vp of retail distribution in Canadian banking and replaces Nicole Reich de Polignac, who resigned last month.
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Colpatria Raises Local Funds
Banco Colpatria has raised COP150bn ($83m) in Colombia’s domestic bond market, according to sources familiar with the transaction. The 10-year inflation-linked subordinated bonds pay 4.14%. Demand reached COP497bn Colpatria self-managed the sale, rated AA+ on a national scale, below its AAA senior rating. It previously issued in February, selling COP150bn in similar 10-year notes paying 4.64%.
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Peruvian Prices Retail IPO
Intercorp’s InRetail Peru unit has priced a $460m IPO, with the oversubscribed deal landing just below the midpoint. The sale is Peru’s largest new equity issue in six years and offers equity investors their first real crack at the consumer demand side of one of LatAm’s fastest-growing economies. The unit holding Intercorp’s retail assets including InkaFarma drugstores and Plaza Vea supermarkets priced 23m shares, assuming the exercise of a 15% greenshoe, at $20.00 each, the company says, versus a $19.00-$22.00 range. The base deal represents a 20% float. Investor concerns about size, liquidity, and use of proceeds mostly for greenfield were outweighed by the issuer’s being part of one of Peru’s strongest corporate group’s and operating in a very attractive industry. “It is difficult to find a such a scalable play on Peru,” says an EM equity portfolio manager looking at the transaction. Investors reported using regional consumer stocks including Cencosud, BR Malls and the Intercorp parent as starting points for the pricing. The transaction was made up entirely of a 144A/RegS sale, a change from the original plan to include a tranche representing up to 5% of the offer for domestic investors in Peru. InRetail is raising funds for expansion in areas including supermarkets, pharmacies and commercial centers. BTG Pactual, Citi, JPMorgan and Morgan Stanley managed the transaction. It is Peru’s largest equity sale since Hochschild Mining’s $577m 2006 IPO, according to Dealogic data, and the second Peruvian IPO this year following Andino Investment’s $43m debut.
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Agricultural Fund Raises Tight Local Bond
Fondo Especial para Financiamentos Agropecuarios (FEFA) has sold a MXP3bn ($233m) bond in Mexico’s domestic market, according to sources familiar with the sale. The 2015 notes priced at TIIE+20bp, tight to TIIE+25bp expectations that were based on the issuer getting that level on a similar deal earlier this year. FEFA saw 3.5 x demand, coming from 93 accounts, according to a source familiar with the sale. Proceeds will be used to fund operations. Banamex, BBVA Bancomer and HSBC managed the transaction rated AAA on a national scale. FEFA is a trust operated by second-tier development bank Fideicomisos Instituidos en Relacion con la Agricultura (FIRA). Established in 1954 by Mexico’s federal government, FIRA offers credit and guarantees among other services to livestock, fishing, forestry and agribusiness sectors in Mexico.
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Mexican Gold Mine Secures Funds
Torex Gold, a Canadian based Mexican mine operator, has raised CAD350m ($343m) to support the development of the Morelos gold mine. In a bought deal managed by BMO, the miner placed 175m units – each consisting of one common share and one quarter of one common share purchase warrant – at CAD2.00 each. A 15% greenshoe is also possible. Each common share purchase warrant allows for the purchase of one common share at CAD2.65 for up to 12 months following the close. Proceeds will be used to fund the development of the Morelos mine, Torex’s sole asset, and for general corporate purposes.