Urbi Desarrollos Urbanos (URBI) is expected to price up to MXP1bn ($74m) today in the Mexican domestic bond market. Price talk for the Mexican homebuilder has widened out to TIIE+370bp-380bp area, from an earlier indications of TIIE+350bp. Proceeds will be used to refinance existing long-term and short-term debt. With the proposed issuance, Urbi will have no substantial debt maturities until 2014, says Moody’s, which rates the deal A3 on a national scale. BBVA is managing the sale. Urbi last visited the bond markets in January 2010, issuing $300m in a cross-border sale.
Category: Regions
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Recope Preps CDB Loan
Costa Rica’s Recope and the China Development Bank (CDB) are working on a 15-year $800m-$900m syndicated loan with a 3-year grace period arranged by CDB to fund improvements at Soresco, a joint refinery venture between China National Petroleum Corporation (CNPC) and Recope, the Costa Rican government says. The Costa Rican national oil refinery has signed a mandate letter with the bank and preliminary financial conditions are being explored, says a person familiar with the agreement, who declined to comment on the interest rate. Soresco, created in 2008, will invest a total of $1.24bn to revamp and expand the Moin-based refinery which will process 60,000 barrels of oil per day. The remaining $300m to $400m will be covered by both partners in equal amounts. Recope plans to issue bonds in the local market in 2012 to finance its share of the deal. As structured, the Soresco joint venture will take care of construction and then lease the facility back to Recope for 15 years with an option to purchase. The lease fee to be paid to Recope will be calculated assuming a 16% IRR for the project.
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T&T Approved for IDB Loans
Trinidad and Tobago has been approved for $130m in loans from the IDB, with $80m of it earmarked for climate change assessment and framework development and $50m for enhancing financial sector stability. The $80m loan has a 20-year term and four-year grace period, with a variable interest rate based on Libor, while the $50m loan has a 20-year term and 5-year grace period, with a variable interest rate based on Libor.
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Argentine Miner Set for Canada Dual Listing
Argentina-based miner Patagonia Gold plans to list on the Toronto stock exchange December 7, after receiving final approval. Its shares will continue to trade on the AIM section of the London exchange. It operates the Cap-Oeste and Cose projects in Southern Argentina.
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Mexichem Rebuffed As It Ups Offer For Wavin
Mexichem has improved an unsolicited offer for Dutch pipemaker Wavin, but saw the move rejected by the target company. The Mexican petrochemical company offered EUR9.00 in cash per ordinary share of Wavin, up from the EUR8.50 offered on November 22. Although “certain progress has been made on non-financial items…the proposed offer price of EUR9.00 per share is not acceptable as this price materially undervalues the company and its prospects,” say Wavin. At EUR9 per share, Mexichem is assigning the Dutch company an enterprise value to Ebitda multiple of roughly 7.5x, assuming equity of $450m, net debt of anywhere between $300m to $330m and an Ebitda of $100m to $105m, says a person familiar with the transaction. Barclays and Citigroup are advising Mexichem, and Bank of America Merrill Lynch is doing the same for Wavin. Wavin shares closed Tuesday at EUR7.83, down 0.89%.
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Rabobank Set for Chile Bond
Dutch bank Rabobank has revived plans to issue bonds in Chile’s local markets, this time targeting an up to UF2m in 5-year bullet. The bank had been initially eyeing a sale last week, including the options of a UF-denominated tranche with a 3.05% coupon and a peso tranche with a 6.05% coupon. Proceeds will be used to fund the bank’s operations. The bond is rated AAA on a national scale. Celfin and Deutsche Bank are managing.
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PacRu Launches Exchange Offer
Pacific Rubiales has launched an offer to exchange any and all of its outstanding 8.75% 2016 bonds for new 7.25% 2021s. Holders will receive $1,150 cash per $1,000 principal if they accept by the December 16 earlybird date, and $1,120 thereafter. The new notes are the same as those issued Monday through the sale of $300m in 10-year NC5s that were priced at par to yield 7.25%. Bank of America Merrill Lynch managed the new issue and is also managing the exchange offer.
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Peru Seen Holding Rates
Peru’s central bank is expected to hold its benchmark rate at 4.25% at the policy meeting today. Though 12-month inflation numbers are above-target, concerns about stalling global growth appear to outweigh fears of domestic overheating. “The central bank seems committed to keep interest rates unchanged despite higher headline inflation,” says RBS, which is among the shops forecasting a continued pause.
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Banco de Chile Prices MXP Debut
Banco de Chile has raised MXP1.5bn ($111m) in a Mexican domestic bond market debut, pricing a 3-year bond at TIIE+ 60bp. With this transaction, the bank becomes the third Chilean issuer to raise debt in Mexico, following similar moves by Banco de Credito e Inversiones (BCI) and miner Molymet. Over 20 accounts participated, including mutual funds, insurance companies and retail, allowing the issuer to see around 1.3x demand. Banco de Chile’s pricing came in line with 50bp-60bp guidance. This was the first bond off a MXP10bn shelf. Banamex and JPMorgan led the transaction, rated AAA on a local scale. In July, BCI priced a MXP2bn 5-year floater at TIIE+40bp, while Molymet in April issued MXP1.5bn 1.5-year bonds at TIIE+55bp.
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Infonavit Talks Price on MXP RMBS
Mexico’s Infonavit is looking to pay 4.5% on 28-year UDI-denominated RMBS, scheduled to price Thursday. The state mortgage lender wants to issue up to MXP1.1bn ($82m) in bonds backed by Infonavit mortgages targeted at middle and high-income borrowers. Banamex is managing the sale, rated AAA on a local scale. Infonavit last issued in June, selling MXP3.85bn ($330m) in 2039 bonds with a 4.75% coupon, to yield Udibonos+216bp.