Standard & Poor’s has raised the credit ratings of Cabei to A from A minus, it says. The agency cites the multilateral lender’s capitalization and shareholder support as factors influencing the decision. Rating constraints include Cabei’s liquidity when compared to regional peers and its small number of borrowers. The outlook is stable.
Category: Regions
Posted inDaily Brief
Compartamos Sets Local Bond
Mexico’s Banco Compartamos is preparing to issue up to MXP2bn ($152m) in the domestic bond market on August 22, according to regulatory documents. It had initially been targeting August 24. The microlender plans 5-year floating-rate bonds, for its fourth issuance under a MXP6bn program. Bancomer, Banamex and HSBC are managing the sale, rated AAA/AA on a national scale. Compartamos last visited the local bond market in August 2011, when it sold MXP2bn in 2016 domestic bonds at TIIE+85bp. The next expected transaction in Mexico’s domestic bond market is a MXP5bn 2017 sale from Inmuebles Carso, set for Wednesday.
Posted inDaily Brief
PE Group Plots Paraguay E&P Listing
After combining three of its Paraguayan E&P units into a single entity, private equity firm Dahava Group plans to raise as much as $300m through listings on the Asuncion and London stock exchanges, it says. The firm’s local Dahava Petroleos vehicle holds the Aurora Petroleos, Boreal Petroleos and CDS Energy units, which it has bought over the last two years, spending more than $100m, according to a company official. After proving the units’ reserves, it now plans to raise up to $100m on the Paraguayan bolsa, hiring Valores to manage, and up to $200m on London’s AIM market, via Strand Hanson. The group says the oil assets should help make Paraguay energy independent. Dahava also owns two diamond mines and a black jade operation, as well as oil and gas concessions in Southern Africa.
Posted inDaily Brief
Santander Aims for Quick Mexico IPO
Santander Mexico plans to file for an IPO as soon as possible in early September, in order to price during the window open in September and October, according to sources following the deal. The bank has previously announced intentions to move ahead with the deal before the end of the year. The growing list of managers includes Santander, Deutsche Bank, UBS, Bank of America Merrill Lynch, Citi, JPMorgan, BBVA and HSBC, according to ECM bankers, who note that roles are still being finalized. The transaction is seen raising more than $2bn to help shore up the Spanish parent’s balance sheet, while creating a float of up to 25% of the Mexican bank.
Posted inDaily Brief
Abertis Diversifies with Brazil Road Buy
At a time when many Spanish companies are exiting LatAm, infrastructure operator Abertis is increasing its exposure to the region, through an agreement to purchase control of OHL Brasil in partnership with Canada’s Brookfield. The pair’s joint venture has finalized the deal for control of the Brazilian toll road operation, valued at approximately $1.7bn, in which Abertis receives all of the shares of the Participes en Brasil vehicle which owns 60% of OHL Brasil, in exchange for 10% of Abertis shares, the assumption of EUR504m ($625m) in Participes’ debt and a payment of EUR10.7m. Through Abertis’ agreement with Brookfield, the Canadian asset manager comes away with 49% of Participes, and Abertis with 51%. “Abertis has a very solid cash flow situation, they have no liquidity problems so they do have the cash to do [the investment],” says a European equity analyst covering Abertis. “Europeans are in a bit of a tough position, because some of their best assets are in EM, but that is also what’s liquid today,” says a Brazil-based investment banker, noting that those who have the means will look to increase their positions as those who don’t exit. Through the deal, Abertis broadens its LatAm operations and diversifies away from deteriorating conditions in Spain’s toll road sector. Spanish toll roads should now represent 27% of Abertis’ revenues, down from 43% in 2011, according to the analyst, who notes the deal should be positive for Abertis going forward. Abertis will get a platform from which it can grow in the sector, and Brookfield, which has been present in the market for many years, will help manage the assets, the analyst says, adding that Brookfield has more than $18bn invested there so far. In a report, Credit Suisse values the transaction at 2.5%-8.9% below OHL Brasil’s current market price, calling the deal slightly negative for OHL Brasil. “While we understand the rationale behind the acceptance of this deal by OHL, namely to reduce leverage and improve cred
Posted inDaily Brief
Wind Bonds Expected this Week
After not emerging last week, the Oaxaca II and IV projects were expected to price as soon as the beginning of this week their respective $164.5m and $167.5m 2031 bonds, according to sources following the process. The pair indirectly owned by Spain’s Acciona had been aiming to complete a deal by Friday, having emerged with yield guidance of 6.5%-area Tuesday. If completed, the two 144A/RegS senior secured transactions, each with an average life of 13 years, would represent the first wind energy project bonds in LatAm. Pricing is being viewed by many in terms of a spread to Mexico’s state-owned CFE, the project’s offtaker, whose 2021 and 2042 bonds yield around 3.20% and 4.90%, respectively. BBVA, BNP, Credit Agricole, Santander and Societe General are managing the deals, each rated BBB minus.
Posted inDaily Brief
Colombian Lender Preps Bonds
Banco de Occidente is expected to issue COP300bn ($169m) in the domestic bond market on Thursday, according to people familiar with the transaction. The lender can choose from a 3-year tranche paying up to DTF+1.75%, a 10-year inflation-linked tranche at up to 4.3% and a 15-year inflation- linked tranche at up to 4.4%. The transaction will raise funds for the Colombian bank’s loan portfolio. The issuance brings the unit of Grupo Aval to completion of about half of a COP3trn program. InterBolsa is leading the deal, rated AAA on a national scale.
Posted inDaily Brief
Titularizadora Plans RMBS Issue
Securitization specialist Titularizadora Colombiana is planning to issue COP401bn ($225m) in domestic RMBS, with a COP351bn 2022 senior tranche scheduled to price August 23, according to documents associated with the offering. Titularizadora is self-managing the transaction, rated AAA on a national scale. In February, it sold COP327bn of 10-year senior RMBS bonds at 7.49%, as part of a larger COP385bn sale that included subordinated debt.
Posted inDaily Brief
Carso RE Readies MXP Bonds
Mexico’s Inmuebles Carso is expected to price Wednesday up to MXP5bn ($376m) in 2017 domestic bonds at around TIIE+70bp-area, according to a person familiar with the sale. The real estate company spun off from Carlos Slim’s Grupo Carso holdco last year is raising funds to refinance short-term debt. This will be the first issuance under a MXP8bn program. Actinver, Banamex, Bancomer and Inbursa are managing the deal, rated AA+/AA on a national scale.
Posted inDaily Brief
UMS Launches Liability Management
Mexico has launched an exchange offer as it seeks to steer debt from a series of less liquid bonds into three benchmark maturities. “We want to exchange off the run bonds in exchange for three of the newest and most relevant on the run bonds – our 2022s, 2044s and our century bonds,” Alejandro Diaz de Leon, Mexico’s public credit head, tells Latin Finance. UMS is targeting six series of outstanding notes due 2013-2017 representing $10.4bn, and nine series due 2019-2040 totaling $18.6bn outstanding. The sovereign is offering bond holders of the first series to swap the old bonds for UMS’ reopened 3.625% 2022, 4.750% 2044 or 5.750% 2110, with accepting holders of the second series able to get reopened 2044s or 2110s. Holders will receive new bonds at a specific ratio plus a possible cash consideration, both varying depending on which specific securities are involved. UMS has not yet set a limit on how much debt it is willing to exchange. The offer expires August 20. Bank of America Merrill Lynch, Credit Suisse and Goldman Sachs are managing the process.