The Mexican state of Oaxaca has raised MXP1.947bn ($140m) through the sale of a domestic bond. The 15-year bond priced at TIIE+135bp, wide of TIIE+125bp-130bp price talk. Proceeds are marked for infrastructure investment and to repay debt. Interacciones led the transaction, rated AAA on a local scale.
Category: Regions
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Banco de Bogota Loan Approaches Finish Line
Banco de Bogota is expected to wrap up a $500m 3-year loan today after bringing in a total of 12 participating banks. The borrower is keeping the $500m size despite having already raised $600m this week through an upsized 5-year cross-border bond. The bulk of the proceeds from both transactions will take out a 1-year bridge used to acquire BA-Credomatic in Central America last year. Citigroup, HSBC and JPMorgan led the loan, the bond and the original bridge. Another 9 banks are expected to sign up to the loan. This group is heard to include international institutions as well as several regional banks.
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Colombia Set for Rates Decision
Colombia’s central bank is scheduled to decide today whether to alter the 4.75% benchmark interest rate. An eventual raise in the rate is expected, but many analysts predict a hike next year rather than what would be a second consecutive increase today, in its final meeting of the year.
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EDP Stake Sale Decision Seen In Days
Portugal is expected to announce in a matter of days the winning bidder of a 21.35% stake in Energias de Portugal (EDP), and will choose from a group of potential buyers including Brazil’s Eletrobras and Cemig. A final decision is expected to be released on December 22, a spokeswoman for the Portuguese government-controlled energy company says. “At this point the process remains in the study phase,” she adds. Aside from the Brazilian utilities, Germany’s E.ON, and China’s Three Gorges have also submitted bids for a stake reportedly valued at EUR1.9bn. Last week, the Brazilian government decreed a change in the statutes of BNDES, allowing the development bank to finance Eletrobras’ bid for the EDP stake.
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Cabei Poised to Close Loan
The Central American Bank for Economic Integration (Cabei) is poised to close a $100m 3.5-year dual-currency loan this week through MLAs and bookrunners Mizuho and HSBC. The 3.5-year bullet loan is split into a $40m-equivalent yen tranche and a $60m dollar portion. Five Asian banks are heard to be participating on a loan that comes with an all-in margin of around Libor+160bp.
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KOF Ups Buying Spree with Queretano Bottler
Coca-Cola Femsa (KOF) has acquired the bottling operations of Grupo Fomento Queretano in a transaction worth MXP6.6bn ($479.3m), an indication of further consolidation in the Mexican bottling sector. As part of the purchase of Queretano, one of the oldest bottlers in Mexico, KOF will assume MXP1.22bn ($88.7m) of the target company’s debt and will pay Queretano shareholders with 45.1m of KOF’s newly issued L shares, at an estimated price of MXP119.29 per share for a total of roughly MXP5.38bn. The Queretano purchase also leaves KOF with a 26.1% equity stake in sugar producer Promotora Industrial Azucarera, up from the 13.2% stake it already owned. KOF officials could not immediately offer deal valuations. Queretano retained M&A advisory firm Seale & Associates, and law firm White & Case to advise on the deal, while KOF hired law firm Ritch Muller and Deloitte Galaz, Yamazaki, Ruiz Urquiza to handle the financial advisory. The operation would mean a 2.3% dilution to KOF shareholders, taking into account KOF’s prior two acquisitions this year of bottler Cimsa and Grupo Tampico, and it implies a valuation of EV/Ebitda of 9.7x, Santander says in a research note. Santander reckons that Queretano would increase KOF sales by 2.5% or MXN3bn and would add MXP683m to Ebitda, a 2.8% increase. In a separate note to investors, Moody’s indicates that it expects KOF’s credit metrics to remain robust despite this transaction, leaving it with a debt-to-Ebitda level of 1.14x. Since KOF held roughly MXP18.65bn in cash as of September 30, Moody’s expects the company to prepay an estimated MXP6.07bn in debt it has assumed from companies it has purchased this year. KOF shares closed Thursday at MXP121.84.
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ING Sheds LatAm Jobs
ING has shed jobs across its LatAm trading, research and DCM groups as the bank moves to comply with Basel III rules and set aside money for capital requirements, says a person with knowledge of the situation. Approximately 20 odd employees are heard being let go in New York and to a lesser extend in Mexico. While the cuts are seen reflecting the diminishing importance of LatAm for the Dutch bank, ING isn’t retrenching altogether. It has kept some research, sales and some DCM people on board, including some in Brazil, and will continue to focus on local currency and interest rate products in LatAm. Its EM hard currency business, however, is being abandoned.
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Televisa Inks Spanish Equity Swap
Mexico’s Televisa has agreed to swap its 40.8% participation in Spain’s national broadcaster La Sexta for 14.5% of Spanish media holding company Imagina. The transaction will involve an equity stake swap with no money changing hands, Televisa says. Under the deal, Televisa will have the right to name 2 directors to Imagina’s 12-member board as well as participate with Imagina on joint content production projects. The deal also gives Televisa certain rights of first refusal to buy content and transmit sporting events. The transaction comes as Spain’s Antena 3 broadcaster moved to acquire La Sexta in a stock deal that would give La Sexta shareholders 7% of Antena 3, with an additional stake of up to 7% over a 5-year period subject to certain conditions. Televisa said that it will not receive Antena 3 stock given that its swap agreement contemplates surrendering its stake and rights to Imagina. A Televisa official could not immediately offer more details in terms of valuation of the assets swapped or which entities advised the companies. To advise on its own transaction, Antena 3 retained Morgan Stanley and Nomura, Deloitte and Ernst & Young as financial advisors, as well as law firms Clifford Chance and Ramon y Cajal. La Sexta hired Citigroup, KPMG and Ecija Abogados.
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BBVA Bancomer Reshuffles Top DCM Post
Ricardo Cano is heard leaving his position as BBVA Bancomer’s credit market head, with talk pointing to former UBS banker Antonio Castano as his possible replacement. Castano is currently director general of state development bank Nacional Financiera (Nafinsa) and like the bank’s recently appointed director general of global business, Alejandro Werner, he also worked at Hacienda in the early 2000s. Werner joined BBVA Bancomer earlier this year after three years as the country’s sub-secretary of finance. Castano, meanwhile, was hired by Nafin in early 2009 after working at UBS as an executive director in the LatAm DCM team and before that as deputy general director of public credit. Castano is heard leaving the government development bank on December 30, and is scheduled to commence a new role at BBVA Bancomer from January 2012. Cano started in the bank’s Mexico DCM group in 1997, and has held his current title since January.
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Fovissste Cuts Ribbon on New RMBS
Mexican government housing agency Fovissste has sold MXP4.309bn ($309.8m) in domestic inflation-linked bonds backed by mortgage loans. The 30-year UDI-denominated notes pay 4.60% and were priced at UDIbonos+283bp. The transaction was heard oversubscribed by 1.13x. Fovissste came wide to 4.50% area expectations and failed achieve the 4.45% seen on Infonavit’s MXP1.1bn 2039 issuance last week. Ixe managed Fovissste’s deal, rated AAA on a national scale. Fovissste had last sold MXP3.9bn ($317m) of UDI-denominated 2040 notes in August at 4.25%, or 296bp over UDIbonos.