Colombian financial conglomerate Colpatria has sold COP80bn (42m) of subordinated bonds in the local market. The 2021 bonds were priced at IPC+5.25% after generating COP112.9bn in demand. Alianza Valores managed the transaction, rated AA on a national scale. Banco Popular is expected to raise COP250bn in the local market next week.
Category: Regions
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Itau Gets IB Approval in Colombia
Brazil’s central bank has granted Itau BBA, Itau’s wholesale and investment banking unit, approval to operate in Colombia. The bank, along with other Brazilians institutions including BTG, is said to be shopping in Colombia. Itau was recently said to be a finalist to take the 50% of Colpatria bought by Scotia in October. Itau BBA operates in Argentina and Chile and has a representative office in Peru.
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S&P Cuts Cemex
S&P has lowered Cemex’s credit rating to B minus from B, it says. “We expect Cemex’s liquidity and financial results will remain weak as a result of adverse global economic conditions and the depressed state of several cement markets in which the company concentrates its operations,” the agency says. The outlook is negative.
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VW Bank on Track for MXP Debut
Mexico’s Volkswagen Bank is on track to raise MXP1bn ($74m) in a Mexican domestic market debut, according to a banker on the deal. The 3-year floating rate notes are expected to be issued at the end of November or in early December, market conditions permitting, and will be guaranteed by parent Volkswagen Financial Services. The sale is the issuer’s first from a new MXP7bn program. Proceeds are marked for funding operations. HSBC and Santander are managing the transaction, rated AAA on a national scale.
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Peru to Make Rate Decision
Peru’s central bank is scheduled to meet today to set the country’s benchmark interest rate. Shops including Credit Suisse and BBVA see the bank again holding the rate at 4.25%.
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Colpatria Preps Local Bond Sale
Colombia’s Banco Colpatria is set to sell COP80bn ($42m) in subordinated bonds in the local market today. The 2021 bonds should pay interest of IPC plus up to 5.25%. Alianza Valores is managing the sale, rated AA on a national scale. In October 2010, Colpatria sold COP200bn ($108m) in 10-year subordinated bonds priced at par. Those bonds paid IPC+5.20%.
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CapCana to Miss Interest Payment
CapCana announced it will not pay a $4.8m interest payment originally due last month, once again pushing the troubled Dominican resort into default. The interest was due Oct. 31 for the 10% 2016 senior secured notes, a portion of the debt which CapCana issued as an exchange for 2013 bonds in 2009, after it fell in technical default for failing to keep enough cash in its debt service account. CapCana observers point out that the instruments are not actively traded, as many investors expected the company to once again fall on hard times. CapCana said in a statement that based on its projected cash flows, it will cease to make interest payments for the foreseeable future. The failure to pay interest due triggers cross-default provisions which would also make due the company’s 10% 2016 recovery notes. At the end of October, the company owed $96.03m in 2016 senior notes and an additional $119.08m in 2016 recovery notes.
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Banobras Heard Talking Price
Banobras is heard looking to pay TIIE+0bp-5bp on a new 4-year floating rate bond that is part of a MXP5bn ($369m) domestic market sale. It is also expecting to pay Mbonos + 80bp for a 10-year fixed-rate portion and Udibonos + 60bp for a 10-year UDI-denominated piece. The government-backed Mexican development bank plans to hold the 3-tranche sale on November 16, according to a banker on the deal. It had been originally aiming to price this week. Bank of America Merrill Lynch and Banamex are managing the sale, rated Aaa on a national scale. Banobras last issued in the local market in 2010 via Banamex, when it sold MXP7bn in 4-year bonds after generating some MXP19bn in demand.
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HSBC Hawks LatAm Assets
HSBC is seeking to sell some of its assets in Latin America, including part of the bank’s insurance business, operations in smaller markets, as well as its Brazilian consumer finance arm, according to people familiar with the process. The bank is primarily seeking to sell off its property and casualty insurance business in Argentina and Mexico, where the bulk of that business lies, in a deal that could reach $1bn. Separately, HSBC is also seeking to shed several units in certain smaller LatAm countries, in what could be another $1bn deal. Finally, the bank is also looking to sell its consumer finance arm in Brazil. HSBC has retained Goldman Sachs as an advisor in the insurance sale process, and its own investment banking division is also advising in all three sales efforts, according to people with knowledge of the bank’s plans. A spokeswoman for HSBC declines to comment. Global and regional players have shown interest for the bank’s assets in LatAm, according to the people familiar, but noted that HSBC’s consumer finance arm in Brazil is a business that would likely make more sense for an established local bank that can leverage those assets.
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Infonacot Preps MXP Securitization
Mexican state-run lender Instituto Fonacot plans to raise up to MXP2.5bn ($183m) in 3-year bonds, which it is aiming to issue on December 2. The consumer-loan backed bonds will pay a spread over TIIE. Scotia and BBVA Bancomer are managing the transaction, rated AAA on a local scale. Infonacot last visited the local market in 2010, paying TIIE+39bp on a 3-year bond, via the same leads.