America Movil is seeking to complete the process to delist its Telmex unit by offering to buy the remaining 2.79% percent of the fixed-line company’s shares still outstanding, it says. Last year the Carlos Slim-controlled wireless operator bought a large chunk of the outstanding stock last year, and held 97.2% of Telmex as of April. In the latest offer, AMX is offering 10.225 pesos ($0.78) per share, equivalent to last year’s offer after accounting for dividends. Telmex shares, which trade infrequently, closed at MXP10.01 Friday. AMX will ask regulators for permission to do the tender “in the coming days.”
Category: Regions
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Bachoco Advances Local Bond
Mexican poultry producer Industrias Bachoco has set an August 29 pricing date for a MXP1.5bn ($114m) transaction that would be its first in the domestic bond market. The notes will pay a spread to the TIIE, and have a tenor of 5 years. The deal is expected to be rated AA/AA+ with proceeds destined to refinance existing debt. Banamex is leading the transaction. Industrias Bachoco operates poultry production and distribution facilities throughout Mexico. Aside from breeding, processing and marketing poultry, it also produces and distributes eggs, swine, and animal feed. Last year it acquired privately-held Arkansas-based poultry producer OK Industries for $95m.
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Facileasing Sets MXP Target
Mexico’s Facileasing plans to issue up to MXP750m ($56m) in the domestic market, according to a regulatory filing. The 3-year floater will pay a spread to the TIIE and will represent the second issuance under a MXP10bn program. In February, Facileasing priced a MXP500m 2015 at TIIE+70bp, marking the fleet leasing company’s first bond offering since being acquired by BBVA Bancomer. BBVA Bancomer is managing the new sale, rated AAA on a national scale.
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Bancoldex Plans Domestic Issue
Colombia’s Bancoldex plans to issue COP350bn ($192m) in the local bond market on September 6, with the ability to upsize to COP700bn. The development bank can choose from 18-month, 2-year and 3-year tranches, and will self-manage the sale, rated AAA, with a group of other brokerages.
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Santander Puts Mexican Foot Forward
Santander has made initial filings for the IPO of its Mexican unit, a transaction bankers say the Spanish bank will hope to get in motion as soon as possible in September. The deal, expected to raise at least $2bn and perhaps as much as $4bn, is seen as the best chance of reviving the region’s equity markets in the second half of the year. Global volatility and international investor bearishness make a turnaround in the region’s ECM market unlikely, but bankers agree the first step towards broader activity would be a sizeable deal that is well demanded and pops in the secondary market. “If Santander works, and the buyside makes money on it, it could really propel the market. If the market is open, with a US rally and no new bad news in Europe, there could be a decent second half,” says a New York ECM banker. This is a best case scenario, he adds, and issuers will be challenged to get deals filed and priced in the September-October window with second quarter numbers. There are also a handful of other $1bn-plus deals in the pipeline, he notes. Santander contemplates floating at least 21.7% of the Mexican bank, and the sale will include both international and local tranches, according to regulatory documents. The sale is to include both primary and secondary shares. Proceeds from the sale will be used for general corporate purposes. The bank also unveiled the full lineup of managers. UBS, Deutsche Bank and Bank of America Merrill Lynch join Santander on the global coordinator tier. Barclays, Citi, Credit Suisse, Goldman Sachs, JPMorgan and RBC are joint bookrunners. Banamex, BBVA Bancomer and HSBC join Santander on the local portion. The specific timing of the sale remains to be determined.
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BBVA Peru Hits the Road
Peru’s BBVA Continental plans to meet bond investors in Europe, Latin America and the US next week. The BBB/BBB+ rated lender will visit accounts beginning in Santiago and Lima on Monday, followed by visits to Los Angeles and New York Tuesday and Boston and London on Wednesday, before wrapping up in Switzerland Thursday. In June, BBVA Continental received authorization to issue up to $800m in the international bond market, with potential to issue as much as $500m in 10-year bonds and $300m in 4-year bonds. The sale would allow Continental to match assets with liabilities and diversify its funding base. BBVA, Bank of America Merrill Lynch and Goldman Sachs are managing the process. Continental’s last visit to the debt capital market was a $500m sale in January, pricing at par to yield 5.75%, with BBVA, Goldman Sachs and JPMorgan managing. Continental’s 2017 and 2020 bonds were trading at 3.7% and 4.8% in yield Thursday, respectively, according to a trader. FIG issuance from LatAm looks to be a strong theme when activity resumes in September. Brazil’s Caixa Economica Federal is heard mandating Deutsche Bank, HSBC and Bank of America Merrill Lynch and Panama’s Global Bank is heard looking to begin a roadshow ahead of a possible covered bond reattempt. Banco do Brasil is also expected to resume plans to issue a yen-denominated bond.
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Moody’s Lifts Peru
Peru has been upgraded to Baa2 from Baa3 by Moody’s, the agency says. Moody’s cites Peru’s reduced susceptibility to political event risk, continuing robust economic growth and sound fiscal performance, sustained improvement of government debt metrics and lower exposure to foreign currency denominated debt. “Peru’s long-standing commitment to macroeconomic stability, market-friendly policies, and sound fiscal management has delivered it a decade of strong private investment, robust growth and steadily declining debt ratios. The country’s recent economic performance and government debt ratios are both among the best in the Baa-rating category. This has provided the government the fiscal flexibility to implement countercyclical policies, which helped the country to avoid a recession in 2009,” the agency says. Moody’s expects to the positive trends will continue for the foreseeable future, if at somewhat more moderate pace. The outlook is positive.
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Fovissste Preps Next Issuance
Mexican government housing lender Fovissste plans to raise MXP4.8bn ($370m) through a domestic RMBS sale, and is targeting an August 29 pricing, according to a regulatory filing. The 2042 bond would be denominated in UDIs and pay a fixed rate. BBVA Bancomer, Banorte-IXE and Santander are managing 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%.
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Paccar Advances MXP Bond Plans
Paccar Financial’s Mexican unit is planning to sell up to MXP1bn ($76m) in 2015 floating rate bonds in Mexico’s domestic market tentatively on September 5. The truck leasing operation’s bond comes under a MXP10bn program, and is scheduled to start a roadshow next week. BBVA Bancomer and Banamex are managing the deal, rated AAA on a national scale. It would be Paccar’s first domestic bond since 2008.
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Davivienda Issues Domestic Bonds
Banco Davivienda has issued COP500bn ($275m) in Colombia’s domestic bond market, according to sources following the deal. The bank sold COP96m in 2015 bullet bonds at 6.52%, COP174bn in 2022s at IPC+4.07%, and COP230bn in 2027s at IPC+4.23%. Total demand was more than 2.5x. Davivienda plans to use proceeds for the development of its credit business. Davivienda’s own brokerage led the sale, rated AAA on a local scale. In June, the Colombian bank saw 6x demand for its first-ever dollar bond, a $500m 5.875% 2022 yielding 5.950%.