Servicios Integrados de Pasaje y Turismo (SIPyT), a unit of Mexico’s Inversionistas en Autotransportes Mexicanos Servicios (IAMSA), is preparing to issue up to MXP3.5bn ($251m) in the domestic bond market. The 15-year securitization is to be issued in UDIs or pesos as soon as July, and would be a debut debt issuance. 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.
Category: Regions
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Unifin to Sell MXP Bonds
Mexico’s Unifin Financiera is preparing to issue up to MXP2bn ($144m) in domestic bonds, according to a regulatory filing. Ixe is leading the transaction. Unifin last raised MXP1bn in asset-backed bonds in May. The 2017 floater priced at TIIE+160bp, inside of 165bp price talk. The bonds were backed by credit receivables for automobile and equipment contracts.
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Moody’s Lifts Bolivia
Bolivia has seen its bond rating upgraded to Ba3 from B1 by Moody’s, which cites economic growth and increasing international reserves, as well as improvement in debt metrics. Its rating outlook has been changed to stable from positive, reflecting challenges in accessing the capital markets and history of policy unpredictability, among other factors. Last month, S&P raised Bolivia’s sovereign credit rating to BB minus from B+, giving the country a stable outlook, and citing Bolivia’s improvement in the government’s debt burden coupled with the country’s strengthened external indicators. The moves come as the sovereign is planning to issue $500m in bonds in the international market this year, in what would be a return after nearly a century. It has hired Bank of America Merrill Lynch and Goldman Sachs to manage a deal, initially planned for July, though unstable market conditions are forcing all potential bond issuers to reconsider.
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Arauco Adds in Canada
Celulose Arauco has agreed to purchase Canadian wood panel firm Flakeboard for $243m, it says. The forestry unit of the Chilean Copec conglomerate claims the buy makes it the top wood panel producer in the Americas, including capacity of 2.9m cubic meters of panels per year in the US. Flakeboard operates two wood panel plants in Canada and five in the US. Arauco is funding the purchase with cash on hand, an investor relations official says, through it does not rule out a bond sale near the end of the year or early next year to replace the cash, as the company also has a maturity coming due then. Arauco did not use an external advisor. The sale, subject to regulatory approval, is expected to close in the second half of the year.
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Honduras Upgraded by S&P
S&P has raised the credit rating of Honduras to B+ from B, S&P says. S&P cites public pension fund reform and 3%-4% GDP growth as helping keep the deficit in 2012 to about 3% of GDP. “The central bank has also taken steps to gradually float the national currency within a narrow band,” the agency says, also noting a more stabilized political environment that makes room for addressing longer-term issues and reform needs. The outlook is stable.
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CAF Jumps through Issuance Window
CAF took advantage of a market rally to print a new $600m bond Thursday, the first step in a liability management operation. In a deal following Swiss and Hong Kong issuance last week, the A1/A+/A+ Andean multilateral drew more than $2bn in orders, and got a tiny new issue premium. “The timing was perfect and resulted in a good transaction,” CFO Hugo Sarmiento tells LatinFinance, noting that the sovereign saw a window of opportunity amid recent volatility, for what is typically its annual visit to the dollar market. The 2022 bond priced at 99.225, with a 4.375% coupon, to yield 4.472% or UST+282.5bp, at the tight end of 287.5-area guidance, which followed 300bp talk. “It was too tight at 10bp-15bp on top of the 2019s.This is a credit that is liked and bought by insurance companies, which don’t mind the flatter curve,” says a West Coast EM portfolio manager. Sarmiento says CAF offered zero to little new issue premium, after spotting the 2019 bonds at UST+270bp on an interpolated basis and adding 20bp for the curve extension from 7 to 10 years. Demand was heard driven by US institutional accounts (50%), with participation from Europe (30%) and Asia and Latin America (20%). A total of 138 accounts participated, including institutions, private banking, retail and insurance. At the same time, CAF has launched an offer to exchange its existing 8.125% 2019 and 5.750% 2017 bonds for more of the newly issued 2022 bonds. Accepting holders are to get $1,278 for each $1,000 tendered of the 2019s and $1,135.91 for each $1,000 of the 2017s, in an offer closing Tuesday. Deutsche Bank, Goldman Sachs and HSBC managed the bond sale and are handling the exchange offer. Last week, CAF issued a CHF175m ($180m) 2.5-year floating-rate bond at par with a coupon of 3-month Libor+145bp, through Credit Suisse. It also tapped the Hong Kong market for HKD398m ($51m) in 12-year bonds priced at par with a 4.00% coupon, via Goldman Sachs.
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Miner Wraps up Share Placement
Dia Bras Exploration, a Toronto-listed Peruvian miner, has completed a CAD45m ($44m) share placement, it says. It sold a brokered portion of 2.6m common shares and a non-brokered portion of 12.4m common shares, done at CAD3.00 each. The non-brokered portion went to Arias Resources, an an existing shareholder which now owns 48.4% of Dia Bras. RBC led the sale, along with Continental Bolsa, Scotia, Credibolsa, Canaccord Genuity and Dundee Securities managed the brokered portion. Proceeds are marked for development of projects in Peru and Mexico.
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Lender Looks at July MXP Bond
Mexico’s Banco Interacciones is heard planning to price a new domestic bond in July. The 2015 of up MXP1.5bn ($113m) will pay a spread to the TIIE benchmark. The notes are rated A on a national scale, and will represent the third issuance under a senior debt program of up to MXP10bn. Proceeds are for maintaining liquidity and general corporate purposes. Interacciones is managing the sale itself. The bank specializes in sub-national and public infrastructure financing in Mexico.
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Corfi Moves for Promigas
Colombia’s Corporacion Financiera Colombiana (Corficolombiana) plans to offer to buy the 75.03% in gas distribution and pipeline company Promigas that it does not own, it says. The financial group is offering up to COP2.49trn ($1.41bn), targeting 99.7m shares at a price of COP25,000 each. The price represented a 13% discount to Wednesday’s COP28,900 closing price. Shares remained Thursday at that level, with trading suspended that morning. The takeover bid has been planned since Corficolombiana, along with other investors, closed the acquisition of companies owning 52.13% in Promigas. The impact of the transaction is positive, says Bolsa y Renta in a report, noting that it values Promigas at COP30,000 per share. The shop adds that Corficolombiana could fund the purchase using its cash and through the sale of assets.
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Monex Lands MXP Debut
Holding Monex has raised MXP1bn ($71m) through a bond sale that represents its debut in Mexico’s domestic bond market. The 2015 priced at TIIE+280bp, in line with TIIE+270bp-300bp price talk. Demand was heard at more than 1.54x, with a diverse group of investors participating, including private banking and brokerage firms. The financial services company’s notes were issued under a MXP2bn program, with proceeds to be used for general corporate purposes. BBVA Bancomer managed the transaction, rated A on a national scale.