Jose Uribe has been reappointed as head of Colombia’ central bank, the central bank says. He will serve another 4-year term beginning in January. He has been in the position since 2005.
Category: Regions
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Norwegian Catches Chilean Fishery
Norwegian fish farmer and fish feed producer Cermaq has agreed to acquire Chilean fish farming company Cultivos Marinos Chiloe, it says, for a total enterprise value of $110m. The transaction value includes both the purchase of shares and the assumption of an unspecified amount of bank loan debt. With many in the industry struggling financially, Chiloe had considered several strategic options, including an IPO in 2011. The transaction will increase Cermaq’s total production capacity by almost 25%.
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Banrural Gets Upgrade
Fitch has upgraded the rating of Guatemala’s Banco de Desarrollo Rural (Banrural) to BB+ from BB, it says. The agency notes “the bank’s consistent and above average performance even during times of economic slowdown in its home market,” as well as a sound local franchise, high profitability, strong capital metrics, and ample depository base. The outlook is Stable.
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FEFA Set for MXP Bond
Mexico’s Fondo Especial para Financiamentos Agropecuarios (FEFA) is heard targeting similar or tighter pricing than the TIIE+25bp level it got in May for a new bond pricing as soon as today. The trust managed by development bank Fideicomisos Instituidos en Relacion con la Agricultura (FIRA) plans to issue up to MXP3bn ($234m) in 3-year bonds. Proceeds would fund operations. Banamex, BBVA Bancomer and HSBC are managing the transaction, rated AAA on a national scale. 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. In its May domestic market debut, FEFA sold MXP3bn in 3-year bonds at TIIE+25bp.
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Inbursa Nears Domestic Sale
Inbursa plans to issue up to MXP5bn ($389m) in the Mexican domestic bond market Wednesday, according to sources familiar with the transaction. The lender’s 2015 bond is heard likely to price at TIIE+23bp-25bp. Inbursa, Banamex, Banorte-Ixe and Actinver are managing. Inbursa last issued in May, selling a floating-rate note paying the TIIE+25bp.
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Mexican Lender Launches IPO
Mexico’s Credito Real has launched an IPO targeting MXP2.22bn-MXP2.63bn ($172m-$205m), according to regulatory documents, with pricing scheduled for October 16. The specialist in payroll, group microbusiness and durable goods loans plans to sell 101m shares at MXP22.00-MXP26.00 each, indicating an MXP2.43bn transaction if priced at the midpoint. A 15% greenshoe is also possible. About 73% of the deal is planned to be primary shares, with the remainder secondary shares to be sold by investors including Nexxus Capital – the largest holder with 18.3% – and Grupo Kon. The bank plans to place half the deal in Mexico and half internationally. Proceeds are for general corporate purposes and for expansion plans. Deutsche Bank and Barclays are managing the international portion, joined by Banorte-Ixe on the domestic tranche. Targeting Mexico’s underbanked lower and middle classes, Credito Real grew by 63% during 2009-2011, and booked revenue of MXP1.0bn in the 12 months to June 30. Founded in 1993, it has funded itself through investment such as Nexxus’, in 2007, and in the local debt markets. Last year it acquired payroll lender Credifel. The Mexican equity issuance pipeline is as active as it has been in years, with Pinfra set to price a $400m-equivalent follow-on Thursday and Mexichem a $1bn follow-on next week, all coming after a $4bn IPO from Santander Mexico last week.
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Sanluis Aims for High 9%
Mexico’s Sanluis is whispering high 9%-area yield for a new $250m 2022 NC5 bond, with pricing expected as soon as today after wrapping up its roadshow in Santiago Monday. Proceeds are destined to refinance debt. Moody’s highlights substantial improvement in Sanluis’s credit metrics as the parent company emergence from reorganization in 2011, when assigning a Ba3 rating. The 144A/RegS notes are guaranteed on senior basis by all Sanluis subsidiaries with the exception of Rassini NHK Investment and Rassini NHK Autopecas. The deal comes with a standard incurrence high yield incurrence covenant and a fixed charged coverage ratio of 2.0x. Bank of America Merrill Lynch and JPMorgan are managing the Ba3/B/B+ transaction.
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Colombia Holds Rates
Colombia’s central bank has elected to keep the country’s benchmark rate unchanged at 4.75%, it says. The bank highlights that exports are slowing down due to weaker external demand, and that inflation expectations are well anchored around the 3.0% target. “The Colombian economy will continue to decelerate in the coming months. For this reason, we continue to forecast an additional cut of 25bp to leave the policy rate at 4.50% by year end,” Nomura says.
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Global Clinches Regional Covered Bond Debut
Global Bank has finally succeeded in bringing Latin America its first covered bond transaction, raising $200m. After initially meeting investors in May, the Panamanian lender waited for better market conditions, and seems to have found them in the September market, generating $500m in orders from 70 accounts. The notes priced at 98.906 with a 4.750% coupon to yield 5.000%, at the tight end of both 5.125%-area guidance and the 5.000%-5.250% range it had been looking for when it first set out to sell the bond. The bonds were up 0.55 points in the grey Friday, according to a trader. While difficult to comp, the deal was said to offer investors an attractive pickup to the Panama sovereign. While a more liquid size might have encouraged more investors to the table, according to sources familiar with the sale, the issuer opted for a smaller size to achieve desired pricing – ideally aiming to perform well in the secondary and sett the tone for future issuance in the asset class. Global also needed to have eligible mortgage collateral to support the deal size. “The deal demonstrates investors like Panama risk and well structured deals,” says a person familiar with the transaction. Demand was principally driven from US-based investors, with a mix of fund managers, hedge funds and other investor types. The deal is backed by a cover pool of residential mortgages denominated in USD and located in Panama. The nearly 4,000 mortgages primarily secured by low and middle-income Panamanians, with an aggregate principal balance of $241m average principal balance of $61,450, according to S&P. It includes a 2-month reserve account to cover any potential interest shortfalls. The transaction has a Baa3/BBB minus rating, above Global’s Ba1/BB+ senior rating, and below the ratings levels seen by covered bonds in the US, most of which are AAA. Deutsche Bank and HSBC managed the transaction. Friday’s sale was part of a $500m program that the issuer hopes to retap in the future.
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US Utility Sheds Guatemala Assets
Teco Energy has agreed to sell its stakes in two power plants and related facilities in Guatemala for $228m, it says. In the cash deal, the Teco Guatemala unit will sell the Alborada and San Jose plants and the related solid-fuel handling and port facilities to privately-held Sur Electrica. Teco has decided to focus on its core US businesses, and will use $25m of the proceeds from the sale to prepay projects debt tied to San Jose, and the remainder to repurchase Teco shares and pay down US-level debt. The company expects the sale to be dilutive to its earnings in 2013 and 2014. The Alborda portion closed last week, while the San Jose portion should close in 1Q 2013. Citi advised Teco.