Dutch bank Rabobank has delayed its plans to sell UF2.5m ($105m) in 5-year bullet bonds in the Chilean market. Expected to issue today, the bank has chosen instead to see how the situation in Europe evolves, says a person familiar with the deal. A UF-denominated tranche is expected to have a 3.05% coupon, and a peso tranche 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.
Category: Regions
Posted inDaily Brief
BCP Signs $150m China Loan
Banco de Credito BCP has signed a 5-year $150m loan with China Development Bank, marking the Peruvian bank’s first such transaction with CDB. The move represents an opportunity for financing and also for strengthening relationships with China, says BCP. The spread over Libor was not disclosed.
Posted inDaily Brief
Urbi Price Talk Heard
Mexican homebuilder Urbi Desarrollos Urbanos (URBI) is heard looking to pay TIIE+ 350bp area on a MXP1bn ($74.5m) 2014 bond. Issuance has been tentatively scheduled for next week. Proceeds will be used to refinance debt and for general corporate purposes. The offering is rated A- on a local scale. BBVA is managing the sale.
Posted inDaily Brief
Bancolomia Mulls $150m Sura Investment
Bancolomiba is considering a $150m investment in pension and insurance assets that Grupo Suramericana recently acquired from ING, the bank says. Sura had indicated the possibility that the bank would participate as a co-investor along with the IFC, Sociedades Bolivar and UBS, its advisor on the acquisition. Bancolombia acted as bookrunner on the recent COP3.5trn ($1.8bn) equity follow-on that helped fund the purchase of ING’s assets. “The operation is an interesting business opportunity, aligned with the ongoing interest that Grupo Bancolombia has in strengthening its presence in the financial sector, including pensions,” it says. Final details are still to be determined. Sura brought in the co-investors as its follow-on fell short of a COP3.9trn target. UBS came in for COP975bn, Bolivar for $400m and the IFC $200m. Sura agreed to buy the ING assets in July for $3.76bn.
Posted inDaily Brief
AMX to Test Dim Sum Market
America Movil (AMX) has mandated HSBC to arrange 2-day fixed-income investor meetings in Asia starting next week amid expectations that the veteran LatAm borrower may try its luck in the so-called dim sum market as it seeks out new pools of liquidity. “There is a lot of money in Asia and issuers are continuing to look at ways to access those markets,” says one DCM banker. “AMX is consistent with diversifying its financing needs and is a more sophisticated borrower with an uncanny ability to read the tea leaves.” This comes just a month after AMX broke new ground by debuting in the Japanese market and becoming LatAm’s first corporate issuer to sell a Samurai without a JBIC guarantee. Now the Mexican telecom may well be the first to test Asian investors’ appetite for RMB-denominated paper from LatAm credits, though Brazilian names such as Bradesco and Vale have also been heard considering such an option. Given the deep pools of liquidity in Asia, it makes sense that borrowers with large capital needs such as AMX are considering engaging investors there as they look to diversify their funding bases and ease pressures on core dollar markets. “AMX has significant capital requirements so there is only so many times it can tap the USD and EUR market,” says another DCM banker. According to a banker familiar with the RMB-denominated market, dim sum issuances have varied in size between $30m-$200m with tenors ranging between 2 to 4 years. In 2010, McDonalds became the first non-Chinese entity to issue a dim sum bond, selling a relatively small RMB200 million ($29.5m) 3% 3-year. Last year companies placed 30 dim sum deals totaling RMB40bn. Volumes are expected to exceed those levels in 2011 with some bankers believing that the dim sum sector will become a core funding source for many borrowers in 20-30 years time. “It’s a nice way for AMX to make foothold now,” a banker says. The A2/A minus/A rated company will hold meetings in Singapore on Monday, December 5 before wrapping u
Posted inDaily Brief
ISA Preps Local Bonds
Colombia’s ISA is set to sell COP300bn ($154m) in domestic bonds Thursday. The utility plans a 12-year and a 30-year linked to the IPC. Citi, Corredores Asociados, Correval and Interbolsa are managing the sale. ISA is rated AAA on a national scale.
Posted inDaily Brief
Axtel Sees Rating Reductions
Mexican telecommunications company Axtel has had its ratings lowered by S&P and Moody’s, according to each agency. S&P dropped its corporate credit rating to B from B+. It points to competition and marginal revenue growth, as well as the expectation that Axtel will continue seeing free operating cash flow deficits due to its capital expenditure program, as part of the rationale behind the reduction. The outlook is stable. Moody’s, meanwhile, downgraded Axtel to Caa1 from B3. Moody’s notes that Axtel faces a challenging competitive environment and a tight liquidity position. The outlook is negative.
Posted inDaily Brief
BBVA Chile Roadshows MXP Tap
BBVA Chile is roadshowing for its up to MXP2bn 3-year debut bond in the Mexican local market, with pricing expected to take place as soon as next week depending market conditions. The bond will pay a spread to the 28-day TIIE and is led by BBVA Bancomer. The deal is rated AAA on a national scale. This marks one of several Chilean financial institutions that have looked to tap this market in recent months, with Banco de Chile also plotting an MXP transaction.
Posted inDaily Brief
Urbi Nears MXP Bond
Mexican homebuilder Urbi Desarrollos Urbanos is close to raising MXP1bn ($71m) through the sale of a 2014 bond. The floating rate notes will pay a spread over the TIIE and is expected to price Thursday, if market conditions permit. Proceeds from the new issuance 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 market in January 2010, issuing $300m in a cross-border sale.
Posted inDaily Brief
Brazil’s Safra Takes Majority Stake in Swiss Bank
Brazil’s Safra Group agreed to acquire from Rabobank a majority position in Switzerland’s Bank Sarasin. Safra does not disclose the total value or the number of shares involved, but says it acquires a 46.07% equity interest and 68.63% of the voting rights, paying an all-cash price of CHF7.20 for class A shares and CHF36.00 for class B shares. Sarasin’s total shareholder equity stands at CHF1.2bn ($1.3bn) as of 1H2011, according to bank documents. Safra officials declined to give any additional specifics regarding valuation or the advisors involved in the deal. Officials for Rabobank and Sarasin say the deal allows Sarasin to further focus on its private banking business in Europe, the Middle East and Asia.