Bancamia has issued COP100bn ($56m) in bonds in Colombia’s local market, according to sources familiar with the sale. The 2014s come with an interest rate of 7.39%. The issuance is the first from a COP400bn program for the Colombian micro lender. Casa de Bolsa and Corficolombiana managed the transaction, rated AA+ on a national scale.
Category: Regions
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GEO Aims for Chilean Bond
Mexico’s Corporacion Geo has received approval from Chilean regulators for a $100m-equivalent bond shelf. The homebuilder would look to sell 10-year UF-denominated bonds in what would be its first deal in Chile and the first “Huaso” bond, or bond from a foreign issuer in Chile since 2010. Proceeds would be used for general corporate purposes, says a person familiar with the company’s plans, and timing for a possible issuance remains unclear. Santander Chile is managing the deal, rated BBB/BBB on a national scale. Only three Huaso bonds have been issued, two from Mexico’s America Movil and one from Peru’s BCP. Regulatory improvements last year were aimed at simplifying issuance and enticing middle-tier credits that don’t have the same access to the US dollar markets, but so far have not resulted in more issuance. The country’s institutional appetite is growing, and bankers say others, including what would be the first Brazilians, are eyeing issuance.
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PineBridge Closes CCD
PineBridge Investments has finalized what will be a MXP2.1bn ($158m) Certificado de Capital de Desarrollo (CCD) transaction in Mexico’s market, according to regulatory documents. The investment firm has raised MXP420m in the first closing of the fund of funds CCD, with the remainder to arrive via future capital calls. The 2022 deal creates a fund targeting private equity, growth fund, private infrastructure and private credit opportunities across sectors in Mexico. The return structure consists of investors’ initial investment plus an 8% preferred return, after which additional proceeds are divided 95% to investors and 5% to the manager. As is common in CCD transactions, PineBridge plans a parallel fund to allow foreign investment alongside the CCD. Finamex managed the sale, structured by its Fimecap unit and Westwood Capital Advisors. In June, AGC Controladora raised an initial MXP553m for a CCD also with a fund of funds structure. Government-backed Corporcaion Mexicana de Inversiones de Capital (CMIC), also known as Fondo de Fondos, is also preparing a MXP1bn-MXP5bn transaction.
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SIPyT Targets August Sale
Servicios Integrados de Pasaje y Turismo (SIPyT), a unit of Mexico’s Inversionistas en Autotransportes Mexicanos Servicios (IAMSA), is aiming to sell up to MXP3.5bn ($251m) in the domestic bond market as soon as this month. The 15-year securitization is to be issued in UDIs or pesos, and would be a debut for SIPyT. The bonds will be backed by its bus fleet and receivables from bus fleet operations. Santander is managing the deal, rated AAA on a national scale. Crecimiento Programado is structuring agent.
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CAF Gets Asian Loan
Corporacion Andina de Fomento (CAF) has closed a $113m syndicated loan, it says, done through a group of Asian banks. The 3.5-year bullet loan pays Libor+97.5bp and was arranged by Mizuho and Bank of Taiwan, with participation from the Export-Import Bank of the Republic of China and the Land Bank of Taiwan. The loan comes as part of CAF’s strategy of expanding its investor base in the loan market and particularly into Asia, says a person familiar with the company’s plans. CAF could also look to tap the market again at the end of this year or next and expand its base to potentially include banks from Hong Kong. In July, Moody’s upgraded CAF to Aa3 from A1. CAF also has a AA minus rating from Japan Credit Rating Agency.
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Market Awaits Wind Bonds
The Oaxaca II and IV wind projects were expected to price today their respective $164.5m and $167.5m 2031 bonds, according to sources following the process. The pair indirectly owned by Spain’s Acciona 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.
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Mexican Preps Domestic Toll Road Securitization
Mexico’s Red de Carreteras de Occidente (RCO) is planning to begin marketing next week a toll road securitization targeting MXP6bn-MXP8bn ($450m-$600m), according to sources following the process. It would be the first such sale in Mexico since October of last year, the first for RCO – winner of the 2007 road concession originally known as Farac – and would represent a sizeable transaction for a Mexican local securitization market seeking greater supply. RCO is targeting MXP6-8bn, though it could issue as much as MXP10bn, through two tranches. A 15-year fixed-rate peso-denominated tranche has an 11-year average life, and 20-year UDI-denominated UDI portion has a 14-year average life. The bonds are backed by future toll road revenues, and come with a partial guarantee by government development bank Banobras. “There is appetite for long-term bonds and investors are quite comfortable with the plans of the issuer, given familiarity with them from when they issued a CCD [certificado de capital de desarollo] in 2009,” says a Mexico-based investor. The bond market offers a good alternative to refinancing for RCO, which has significant syndicated loan debt, according to sources following the deal. Market conditions are more favorable to issue a securitization of this size and tenor more so this year than last, they note, with more liquidity and appetite now. The project is not only a mature one with years in operation, but also boasts growth potential. The asset offers the fastest road connection between two of the most populous cities in Mexico – Mexico City and Guadalajara. With the roadshow beginning next week, pricing is scheduled as soon as September. Ratings are expected to be AAA on a national scale. BBVA Bancomer, HSBC, Inbursa and Santander are managing the sale, with Goldman Sachs and HSBC as structuring agents. RCO raised MXP6.5bn in the CCD markets in 2009. The domestic market was able to place toll road securitization issuance last year, but not with great size
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Fitch Raises Bladex
Fitch has upgraded the credit rating of Banco Latinoamericano de Comercio Exterior (Bladex) to BBB+ from BBB, it says. Improvements to the supranational’s funding structure, and closing maturity gaps and were the main motives for the move. “Bladex has proven that it can face severe crises and has successfully refocused its strategy achieving moderate growth while ensuring a more consistent financial performance,” the agency says. The outlook is stable.
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Peru Growth Fund Reaches First Close
Peruvian fund manager Macrocapitales has completed the $50m first close of its Fortaleza multi-sector growth capital fund, it says. The fund is aimed at mid-sized companies with sales of $10m-$80m, and targets the industrial, health, agriculture and commercial sectors.
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Earnings Trends Cloud ECM Issuance Expectations
With earnings season in full swing in Brazil, public companies’ target revisions and below-forecast results have complicated the picture for both equity market performance and new issuance prospects through the rest of the year. “Revisions in Brazil have been among the worst in the region. The 53% rate [of companies beating earnings estimates] is in line with the average, but the expectations were much lower,” Francisco Schumacher, equity strategist at Deutsche Bank, tells LatinFinance. Only 35% beat sales forecasts, down from 49% in the first quarter. His shop has a 64,000 fair-value level on the Bovespa, and is marketweight rating on Brazil. Much of the trend reflects complications in Brazil’s economy, with lower GDP growth forecasts and lingering concerns about consumer credit and government intervention. “It is clear that this will remain a buyer’s market for some time,” says a Sao Paulo-based ECM banker, noting the quarterly results are neutral to negative for the equity markets going forward, depending on the company and sector. Some 30% of Brazilians have reported so far, with Vale and Oi among the bigger names making headlines with disappointing results. Mexico has mostly finished its earnings season, and the results paint a relatively brighter picture for potential public equity deals. “Earnings have been in line with our expectations,” Manuel Jimenez, equity analyst at Banorte-Ixe, tells LatinFinance, highlighting 14.2% Ebitda growth and 5.7% net income growth for the 43 companies his shop tracks. “With the rich valuation that the market has, there could be a window open for new issuance,” he says. Though Brazil has a full pipeline, five IPOs were postponed in July. “Mexico is going to differentiate itself from Brazil, and it will be reflected in the issuance pipeline, but there can be no mistakes,” says a Mexico City ECM banker, meaning transactions will be limited to the strongest. Mexicans including Santander Mexico and Pinfra, and additional issuers i