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.
Category: Regions
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.
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.
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.
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.
Colombian Lender Set for Subordinated Bond
Banco Colpatria is expected to issue COP150bn ($83m) in 10-year inflation-linked subordinated bonds in Colombia’s domestic market today, according to sources familiar with the Colombian lender’s plans. Colpatria is self-leading the sale, rated AA+ on a national scale, below the AAA senior rating. It last issued in February, selling COP150bn in similar 10-year notes paying 4.64%.
Peru Retail Builds IPO Book
InRetail Peru was heard with oversubscribed order books Tuesday ahead of today’s scheduled IPO pricing, targeting more than $400m. The unit of the Intercorp group operating retail assets including Inkapharma drugstores and Plaza Vea supermarkets is selling 20.05m shares at $19.00-$22.00 each, indicating a $411m size if done at the midpoint. The transaction is to be made up entirely of a New York sale, the issuer says, a change from the original plan to include a tranche representing up to 5% of the offer for domestic investors in Peru. In what is being called the first Peru IPO offering domestic consumer demand exposure, InRetail is raising funds for expansion at its different units. BTG Pactual, Citi, JPMorgan and Morgan Stanley are managing the transaction, likely to be Peru’s largest IPO since 2006. It would be the first sizeable Peruvian equity sale since a $265m follow-on from Pacasmayo in February.
Sanluis Expected with Bond
Mexico’s Sanluis is expected to price a new $250m 2022 NC5 bond today, after finishing meetings and indicating high 9% yield intentions Monday. The vehicle parts manufacturer’s 144A/RegS notes are to be guaranteed by all almost all of its subsidiaries. Proceeds from the sale are destined to refinance debt. Bank of America Merrill Lynch and JPMorgan are managing the Ba3/B/B+ transaction.
Fitch Moves Bolivia into Double-B Territory
Fitch has raised Bolivia’s credit rating to BB minus from B+, it says, giving the potential international bond issuer its third of three double-B ratings. “Bolivia’s upgrade reflects the country’s strengthened external buffers, improved sovereign debt profile and greater diversification of financing sources, which provide ample flexibility to cope with commodity cycles and adverse domestic and external shocks,” the agency says. Increased investment should also continue to support growth. These strengths are offset by concerns including a high commodity dependence, regulatory uncertainty, nationalization risks and social conflicts. The outlook is stable. Bolivia hired Bank of America Merrill Lynch and Goldman Sachs earlier this year to manage an international bond sale. The sovereign was targeting a $500m 10-year sale in June or July, but opted instead to wait. It is heard considering another attempt before the end of the year.
Colombian Miner Meets Investors
Gran Colombia Gold has started meeting investors ahead of a $120m sale of gold-linked notes and equity warrants, according to sources familiar with the process. The Canadian-based miner is offering units consisting of $1,000 principal in the 10% 2017 gold-linked notes and 250 common share purchase warrants. The road show is scheduled to run through October 5, with pricing expected as soon as next week. The miner operating exclusively in Colombia is raising funds for development and construction of projects at its mine in Segovia. GMP Securities is managing the sale.