Andino Investment Holding Peru expects to start talking to banks in Q4 this year as it looks to refinance a syndicated loan, likely through a $100m bond, CEO Carlos Vargas Loret de Mola tells LatinFinance. Such an issuance would likely come in 2014. AIH has in the last 12 months raised an $85m syndicated loan, a $43m-equivalent IPO and a $110m bond at its Terminales Portuarios Euroandinos unit. Goldman Sachs managed the bond and loan. The loan addressed consolidated debt and minority stake acquisitions by the group’s more than a dozen companies. Andino is starting to work with the rating agencies now to make sure it can move forward with its plans in its preferred time schedule.
Category: Regions
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Banco do Brasil Plans Yen Issuance
Banco do Brasil is preparing a yen-denominated bond, according to sources familiar with the matter. The bank has selected Bank of America Merrill Lynch, Banco do Brasil, JPMorgan, Mizuho and SMBC Nikko for the “euro yen” deal that would represent a departure from LatAm issuers’ preference for the Japanese retail-focused Samurai sales of recent years. The timing and details are unclear, but the sale is heard to be as soon as late July at perhaps $500m-equivalent for up to 5 years. The Brazilian bank issued $24m-equivalent in yen-denominated bonds in 1995, according to Dealogic.
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Colombia Expected to Hold Rates
Colombia’s central bank is expected to hold the country’s benchmark interest rate at 5.25% when it meets today. “The policy statement should maintain a broadly neutral bias but the language may turn more dovish given the deteriorating external backdrop and ongoing loss of domestic demand momentum,” says Goldman Sachs, among the banks forecasting a hold.
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Davivienda Capitalizes on Colombia Demand in Bond Debut
Banco Davivienda saw 6x demand for its first-ever dollar bond, taking advantage of demand for Colombian financial credit exposure. Colombia’s third largest bank drew $3bn in orders for the $500m 2022 and achieved one of the lowest-ever coupons in the LatAm Tier 2 bond space, according to bankers following the deal. The Ba1/BB+ subordinated bond priced at 99.441, with a 5.875% coupon, to yield 5.950%, or UST+437.5bp, pricing at the tight end of 6%-area guidance, which followed low 6% whispers. Some EM investors considered the Colombian blue chip’s deal fair value versus Bancolombia’s subordinated 2020 bonds, seen trading at around 5.35% yield. Leads were heard indicating that the bond came nearly flat to where a new Bancolombia bond would price. “Great deal for Davivienda as a new borrower and pricing a Tier 2 inside 6.0%. The book size shows strong demand for a Colombian pure play,” notes a DCM banker away from the deal. The bonds were trading up 1 point in the grey, according to a trader. Roughly 49% was allocated to US buyers, 29% to LatAm accounts, and 22% to Europe and less than 1% to Asia. The Colombian lender is looking to help fund the $800m acquisition of HSBC subsidiaries in El Salvador, Costa Rica and Honduras agreed in January, as well as general corporate purposes. Credit Suisse and JPMorgan managed the sale.
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GNB Sudameris Plots Bond
GNB Sudameris has received authorization to issue subordinated cross-border bonds, it says. The Colombian bank does not give additional details. Last month, the lender agreed to buy HSBC’s operations in Colombia, Uruguay, Peru and Paraguay, for $400m.
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Bolivia Banks Stable: Moody’s
The outlook on Bolivia’s banking system remains stable, Moody’s says, as sustainable economic growth, decreasing unemployment, and moderate inflation continue to support the banks’ expansion. “Economic stability has improved credit conditions in Bolivia and contributed to record low non-performing loans at the banks in 2011. Banks have also cleaned up their balance sheets of legacy loans from Bolivia’s last financial crisis,” the agency adds. Declining financial dollarization in Bolivia is also helping profitability, liquidity and asset quality at the banks. The favorable conditions are partly offset by the effects of Bolivia’s still sizeable informal economy, and by low investor confidence in the banking system, along with a potentially adverse political environment, all of which may hinder the demand for credit. Moody’s expects Bolivian banks’ asset quality to remain stable.
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America Movil Hits KPN Target
America Movil (AMX) is poised to reach a 27.70% stake in Dutch telecom KPN following the close of a public tender offer, it says. It has received offers in the tender for more shares than it needs to reach the pre-set ownership limit. Through the offer launched last month, it had been targeting up to 325m shares, at a price of EUR8.00 ($9.15) per share. The shares closed at EUR7.32 Wednesday. The Mexican telecom is looking to increase its beachhead in Europe at an attractive valuation. Despite AMX insisting it does not seek a full takeover, KPN had attempted to thwart the offer. Deutsche Bank is advising AMX. AMX also recently agreed to pay $1bn for a minority stake in Telekom Austria, a move which was welcomed by the target.
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Davivienda Sets Bond Target
Banco Davivienda has given 6%-area guidance for a benchmark-size 2022 subordinated Tier 2 bond, expected to price as soon as today. The third-largest Colombian lender is looking to help fund the $800m acquisition of HSBC subsidiaries in El Salvador, Costa Rica and Honduras agreed in January. The Baa3/BBB minus rated bank wrapped up fixed-income investor meetings in New York, Los Angeles, and Medellin Wednesday. Leads are looking at Bancolombia’s subordinated $620m 2020 bonds, which were trading at 5.30% yield Wednesday, as a direct comp. Moody’s, when assigning its Ba1 rating, suggests a size of up to $500m. The issuance is expected to be a non-preferred, non-convertible subordinated debt with no coupon deferral option, the agency says. Credit Suisse and JPMorgan are managing the sale.
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Mexican Bank Plans Investor Visits
BBVA Bancomer plans to meet bond investors in Asia, Europe, Latin America and the US starting July 3. The Spanish bank’s Mexican unit starts the 7-day trip in Lima, followed by visits to accounts in Santiago, London, Hong Kong Singapore, New York and Boston before wrapping up in Los Angeles and Chicago Wednesday July 11. The A1/A minus rated bank has mandated BBVA, Bank of America Merrill Lynch and Goldman Sachs. A deal would be BBVA Bancomer’s first since a $2bn sale, offering a 2016 senior and 2021 subordinated tranches, through BBVA, Deutsche Bank and Goldman Sachs.
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Pemex Issues First Ex-Im Bonds
Pemex has issued $400m in bonds backed by the US Export-Import bank, the first issuance under a $1.2bn program guaranteed by the American ECA. Upsized to $400m from an anticipated $250m size, the 2022 notes with a 5.71-year average life priced at par with a 2.0% coupon. The bond was sold to US investors, and was heard more than 2x subscribed with asset managers and insurance companies driving the bulk of demand. In addition to providing a cheap and diversified source of funding, the deal represents the first time an issuer has issued a US Ex-Im backed structured bond for purposes outside of aviation funding, according to bankers following the trade. Proceeds of the issue will be used for payments for US imports of goods and services purchased by Pemex and its subsidiary entities from US suppliers for Pemex’s strategic gas program and the payment of 100% of the related Ex-Im bank exposure fee. Credit Agricole, Goldman Sachs and JPMorgan managed the sale. Pemex anticipated 4-7 such US Ex-Im guaranteed issuances under the program in the next few months, for up to $1bn. In the event additional bond funding is not feasible, US Ex-Im could also provide direct loans. The $1.2bn package also includes a $200m credit facility to support purchases from US small businesses.