Mexico’s Corporacion Inmobiliaria Vesta has priced an IPO of at least MXP3.36bn ($254m), coming at the bottom of its price range. Vesta priced the shares at MXP19.00 each, according to a banker on the sale, versus a MXP19.00-MXP21.00 range. This would indicate a MXP3.36bn base deal, and MXP3.87bn size if the issuer placed all of the 203.8m shares available, including overallotment options. The industrial real estate specialist’s sale had been pushed back one day from Wednesday at the request of regulators, but was oversubscribed. The sale was aided by a preference for the real estate sector and the general bullishness on Mexico that has emerged this year, investors say. The total included 37.9m secondary shares sold by by members of the founding Corona family and other investors. Vesta plans to use 75% of the proceeds for the construction of new projects and the remainder for acquisitions. Credit Suisse and Santander managed. The developer is in 11 Mexican states and specializes in light manufacturing and distribution facilities.
Category: Regions
Credito Real to Issue
Mexico’s Credito Real is scheduled to issue a bond of up to MXP500m ($38m) today in the domestic market. The 3-year domestic floating-rate bond had been expected as soon as Wednesday. Proceeds are marked for general corporate purposes. BBVA Bancomer and Banorte-Ixe are leading the deal, rated A/A. In April, S&P upgraded the company’s rating to BB from BB minus globally and to A from A minus on a national scale.
Fibra Uno Adds Portfolio
Mexico’s Fibra Uno, a real estate income trust, has agreed to purchase a package of real estate assets totaling MXP11.6bn ($881m), it says. The deal includes the assumption of MXP8.4bn in debt. The package includes 7 commercial complexes, 5 office buildings, 3 industrial properties and the concession to operate a commercial area within a port complex, located in the states of Quintana Roo, Jalisco, Nuevo Leon, Nayarit and Mexico, and in Mexico City. The transaction is expected to close by year-end. Fibra Uno has raised MXP12.5bn in two visits to the capital markets, becoming the first and so far only real estate trust in Mexico.
Mexico Raises Syndicated Mbono
Mexico has sold MXP30bn ($3.80bn) in 2017 Mbonos through a debt syndication, it says. The 5.0% coupon bonds priced at a discount to yield 4.88%. The 35 international and domestic accounts participating included banks and brokerages (59%), mutual funds (32%), government entities (7%) and pension funds and insurance companies (2%). Overall, international investors accounted for 33%. Banamex, Deutsche Bank and Bank of America Merrill Lynch managed.
Mixed Results Seen for IPOs
The fate of an IPO for Brazil’s Biosev remained uncertain late Wednesday night, while fellow Brazilian Transmissora Alianca de Energia Eletrica (Taesa) and Mexican Vesta were seeing strong demand for their offerings scheduled to price today, according to people following the sales. Biosev, the sugar, ethanol and bioenergy unit of Louis Dreyfus Commodities, was seeking to raise more than BRL700m ($345m), but had not priced as of late Wednesday night. The deal counted on an approximately 40% participation from its controlling shareholders, but was still needing to get the additional orders needed to reach its target, according to people following the sale. The lead managers declined to comment or were not available for comment on the status of the deal. More information was expected today. Despite any issues with valuation, the issuer is seen as a strong, diversified player likely to emerge as a consolidator in what is a very fragmented sector. Biosev is seeking to sell 41.2m primary shares, with the option of a 15% greenshoe and 20% hot issue, in order to raise funds for its expansion plan and to repay debt. It has 13 plants in operation, with 40m tons of processing capacity and 1,000 megawatts electric generation capacity, and plans to grow in the areas of sugar and ethanol production and energy generation. Bradesco and JPMorgan are global coordinators on the sale, and Banco do Brasil, Banco Votorantim, Itau and Santander are bookrunners. Meanwhile, Taesa was 3x subscribed heading into today’s scheduled pricing and Vesta was also oversubscribed as it pushed back its pricing one day until today, according to people following the transactions.
Vesta IPO Waits a Day
Mexico’s Corporacion Inmobiliaria Vesta is now set to price its IPO today, pushed back one day from Wednesday at the request of regulators, according to sources following the deal. The industrial real estate specialist’s sale targeting about MXP4bn ($304m) was heard already oversubscribed as of Wednesday afternoon. “This is in many ways a bond proxy, when you have contracts and high occupancy, and strong income,” says an EM investor looking at the deal. He notes that Vesta’s portfolio stands out due to many blue-chip tenants, such as BMW. The deal is also helped by the more bullish view that has taken shape this year regarding Mexico’s growth prospects, particularly regarding the increased investment from the types of manufacturers that use Vesta’s facilities. Vesta is offering 177.2m shares at MXP19.00-MXP21.00 each, meaning a MXP4.08bn sale if priced at the midpoint and a 15% greenshoe is used. The base deal includes 50.7m primary shares to sold in Mexico, 88.6m primary shares to be sold internationally, and 37.9m secondary shares to be sold in Mexico by members of the founding Corona family and other investors. Vesta plans to use 75% of the proceeds for the construction of new projects and the remainder for acquisitions. Credit Suisse and Santander are managing. The developer is in 11 Mexican states and specializes in light manufacturing and distribution facilities.
BCP Wraps up DPR
Banco de Credito del Peru has completed the sale of $465m in bonds backed by diversified payment rights (DPR), it says, getting a larger size and distribution than is typical of the asset class in LatAm. A $150m 2017 with a 3-year average life portion pays a spread to Libor, and a $315m 2022 tranche pays a fixed rate. A manager on the deal declines to provide additional comment on the pricing. Standard Chartered and Wells Fargo are managing the sale, rated A/A.
Pacific Rubiales Gets Positive Outlook
S&P has raised the outlook on Pacific Rubiales’ BB rating to positive from stable, it says. The agency cites the Colombian oil producer’s rise in production volumes and reserves and continuing strong financial performance as among the reasons for the move. Pacific Rubiales saw revenues double to $3.7bn as of March 31, 2012, up from the same time frame in 2011. Its debt to Ebita ratio fell to 0.6x from 0.9x last year. The ratings could rise to BB+ if the company continues to strengthen its operating performance by developing its reserve base further, implementing its growth strategy successfully, and fully integrating its new acquisitions in the next 12-18 months. If production increases are lower than expected, however, the outlook could return to stable.
Indians Quit Bolivia
India’s Jindal Steel & Power has terminated its $2.1bn contract with the Bolivian government for the El Mutun iron ore project, it says. The exit is prompted by the Bolivian government’s unwillingness to supply 10m cubic meters per day of gas within 180 days of signing the contract to the company’s facilities, as was originally agreed, the company says. Instead, the government offered 2.5m cubic meters a day from 2014. Jindal adds that the government also didn’t accept its request to scale down the investment, given the shortage of gas. It plans to pursue international arbitration. The contract for mining and steelmaking was originally signed in 2007.
Bancomer’s Deschamps Elevated
BBVA has promoted BBVA Bancomer CEO Ignacio Deschamps to be head of a newly created division, Banca Retail, overseeing retail banking at a global level as well as the entirety of its LatAm businesses, it says. Vicente Rodero, who previously oversaw BBVA’s south American operations, replaces Deschamps as chief of Bancomer. Luis Robles Miaja takes over as Chairman of BBVA Bancomer. The changes will be effective October 1. Responsibilities for retail banking at the parent were previously handled by José Maria Garcia Meyer-Dohner, who has left the bank.