Colombian natural gas transport company Promigas is looking to issue approximately COP1trn ($548m) in local and international markets as soon as the end of September, according to sources familiar with its plans. Two separate structures are being put in place – a trio of domestic bond issues and, in parallel, a 144a/RegS issue. Local issuance could occur via subsidiaries Surtigas and Gases de Occidente – Surtidora de Gas del Caribe’s filing for up to COP200bn to issue bonds of 2-20 years maturity is part of that potential package. Promigas would target 10-plus years in local markets and a maximum of 10 years in international markets. Corficolombiana is expected to lead the deal, rated AAA on a national scale. Promigas is hoping for a second investment grade rating before issuing. In May, its CFO Aquiles Mercado Gonzalez told LatinFinance Colombia’s second-largest gas pipeline operator was in dialogue with banks for a possible international deal this year. He highlighted peer Transportadora de Gas Internacional’s (TGI) $750m 10NC5 bond success in March as a reference point for his company. TGI saw $5bn in orders before pricing the 2022s at par with a 5.70% coupon to yield UST+342.6bp. Promigas sold bonds in the domestic market in August 2009, raising COP400bn at various maturities, via Bancolombia.
Category: Regions
CFE Sets Domestic Timing
Mexican power company CFE is planning to issue up to MXP12bn ($899m) on September 19. The 30-year fixed transaction has a 15-year average life, according to selling memo. The state-owned utility could issue a maximum amount of up to MXP17bn, which falls under a MXP50bn program. The proceeds will be used to finance expenses related to the La Yesca hydroelectric power project. Banamex, BBVA Bancomer and Santander are managing the transaction, rated AAA.
Fovissste Prices RMBS
Mexican government housing lender Fovissste has raised MXP4.8bn ($359m) through a domestic RMBS sale. The 2042 bond is denominated in UDIs and pays a fixed rate of 3.85%. BBVA Bancomer, Banorte-IXE and Santander managed the sale, rated AAA on a national scale. The government-backed lender last visited the market in June, raising MXP5.20bn in 2042 notes paying 4.30%.
IDB Approves Wind Farm loan
The IDB has approved a long-term unsecured loan of up to $76m for Enel Green Power subsidiary Impulsora Nacional de Electricidad to fund wind farm Bii Nee Stipa II. The project is the first Mexican wind farm for Enel Green Power. Located in the Isthmus of Tehuantepec in Oaxaca, Mexico, the 74-megawatt farm has 37 wind turbine generators and the potential to generate 278 gigawatt-hours annually. Construction for the project, which should reduce carbon emissions by 172,265 metric tons per year, finished in June. Further details about the loan’s terms were unavailable.
US Manufacturer Agrees to Chile Buy
Cleveland, Ohio-based Eaton Corporation is poised to acquire Chile’s Rolec Comercial e Industrial, subject to closing conditions, the company says. Rolec is a 73-year-old family business with 630 employees, according to a source familiar with the business. It makes integrated power assemblies and switchgear, with products used in Chile and Peru for mining and other industrial applications. Eaton, meanwhile, cites Rolec’s relationships as valuable to its growing business in Chile and Peru in sectors such as mining, pulp and paper, and energy infrastructure. “We are excited to add Rolec’s capabilities to our expanding operations in South America,” says Rich Stinson, president, Power Distribution for Eaton’s Electrical Americas Region, in a statement. Eaton had 2011 sales of $16.0bn.
Pacific Rubiales Upsizes Facility
Colombian oil producer Pacific Rubiales has upsized its $600m revolving credit facility to $700m. Participation includes 23 banks, including Colombian and foreign institutions. The deal is expected to close in the first half of September, according to a source familiar with its plans. The facility consisted of a $400m dollar tranche and a $200m-equivalent peso tranche, which has been increased to $300m-equivalent. The new facility replaces an existing $350m revolver. Funds will be used to help the company maintain liquidity to cover any short-term funding needs. Bank of America Merrill Lynch and Corficolombiana are managing.
Facileasing Prices MXP Bond
Mexico’s Facileasing has issued a MXP750m ($57m) bond in the domestic market. The 2-year floater priced at TIIE+75bp and represents the second issuance under a MXP10bn program. BBVA Bancomer and Bank of America Merrill Lynch managed the sale, rated AAA on a national scale. Facileasing previously priced a MXP500m 2015 at TIIE+70bp in February, marking the fleet leasing company’s first bond offering since being acquired by BBVA Bancomer.
Ford Credit Looks to Issue
Ford Credit de Mexico will look to issue up to MXP2bn ($150m) in 2-year bonds, according to sources familiar with the auto finance services company’s plans. The issuance is part of an up to MXP8bn program. Bookrunners on the deal are Actinver, HSBC, Banorte-IXE and Scotiabank. In September of 2011, Ford Credit de Mexico sold MXP1bn in domestic floating-rate bonds. The 1.5-year deal priced at TIIE + 95bp, 5bp inside TIIE+100bp-area guidance.
Sodimac Sells Bonds
Sodimac has sold COP300bn ($164m) in Colombia’s domestic market, in an issue that saw some 2.8x demand. The home improvement unit of Chilean retailer Falabella sold COP40bn in 5-year bonds at IPC+3.48%, COP190bn in 10-year bonds at IPC+3.88% and COP70bn in 5-year bonds at 6.47%. Bancolombia and Correval are managing the deal, rated AAA on a local scale.
Bachoco Lands Tight MXP Debut
Mexican poultry producer Industrias Bachoco on Wednesday issued MXP1.5bn ($113m) in 5-year floating rate bonds, after seeing 2.3x in demand, according to a banker on the deal. The bonds priced at 60bp over TIIE, tight to the 70bp-area over TIIE guidance. Orders came from a diversified investor base including Afores, private banks, mutual funds and insurance companies. Proceeds will be used to refinance debt associated with the purchase of privately-held, Arkansas-based poultry producer OK Industries. Banamex led the transaction, rated AA+/AA.