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.
Category: Regions
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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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IDEAL Prices MXP Bond
Mexico’s Impulsora de Desarollo y El Empleo en America Latina (Ideal) has raised a total of MXP4.5bn ($337m) in the domestic bond market. The issue marks a debut for the Carlos Slim infrastructure vehicle, which had planned to raise funds in the equity market this year, before conditions became difficult. The issuer priced a floating rate MXP1.9bn 2016 bond at TIIE+80bp, wide of 75bp guidance, and a MXP2.6bn 2014 floater at TIIE+60bp, wide of 55bp guidance. Ideal had targeted a MXP3.8bn size for the 3-year, with the remainder to go to the longer tranche, but chose instead to upsize the 5-year tranche and reduce the 3-year, after getting better-than-expected demand for the longer-dated paper. Bancomer, BAML, Inbursa and HSBC led the transaction, rated AAA/AA on a national scale.
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Pardo Unloads ASUR Stake
Fernando Chico Pardo, chairman and CEO of Mexico’s Grupo Aeroportuario del Sureste (ASUR), an airport operator, has decided to sell a 49% stake in Inversiones y Tecnicas Aeroportuarias (ITA) to bus transportation company ADO, ASUR says. The deal comes roughly a year after Pardo acquired the 49% stake in ITA it didn’t already own from Copenhagen Airports, which recorded a $51.7m profit adjustment as a result of the deal. ITA, a strategic shareholder, holds 7.65% of ASUR’s’ capital stock in the form of class BB shares. Pardo also plans to sell a portion of his class B shares to ADO, ASUR said. Officials at ASUR declined to give a final figure or further details on the transaction. ADO officials could not be reached for comment.
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DomRep Returns for $250m
Dominican Republic emerged Tuesday with a $250m retap of its existing 7.50% 2021 bonds, after reopening the same bonds for $500m just 4 months ago. Books eventually grew to roughly $2bn on a deal that took the outstanding size of the 2021 bonds to $1.5bn. DomRep reopened the bonds at 103.952 to yield 6.875%, in line with 6.875%-7.000% price guidance and earlier 7.000% area whispers. “Just a few weeks ago the market was either closed or new issue premiums were high or investors were asking for volatility premiums,” says one investor. “This trade was well executed – announced and priced in a matter of hours and had good momentum.” Before the announcement, the bonds were being quoted at around 105.00 or 6.78% on a yield-to-maturity basis. In the grey the bond was trading up, around 104.75- 105.75. It was thought the deal came with a 10bp-12bp new issue concession or roughly 1 point discount from a price of 103.95 versus a Monday close of 105. “With the bonds as low as 98 in price within the last month and up to 105 in price Monday, it was a good call from leads to bring the issuer to market Tuesday,” says a banker away from the B1/B+/B deal. Bookrunners were Deutsche Bank and Citi. In July, the issuer retapped its 7.50% 2021s for $500m with Barclays and JPMorgan.
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Unifin Prices MXP ABS
Mexico’s Unifin Financiera has raised MXP800m ($59m) in asset-backed bonds in the domestic bond market. This amount represents an increase from the originally planned MXP400m size. The 2016 floater pays the TIIE+165bp, inside of 170bp-180bp price talk. The bonds are backed by credit receivables for automobile and equipment leasing contracts. IXE managed the transaction, rated AAA on a national scale. Unifin last issued an MXP400m 5-year bond at TIIE+160bp in February.
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Brazil Mine Clinches Bought Share Deal
Toronto-based Colossus Minerals, operator of the Serra Pelada project in Brazil, has raised CAD86m ($85m) through a equity-linked bought deal. Colossus sold 86,250 units at CAD1,000 each, which includes the underwriters’ exercise of an overallotment. Each unit consists of a CAD1,000 face value of a senior unsecured 2016 gold-linked note and 60 common share purchase warrants. The 2016 notes pay between 6% and 13%, dependent on the price of gold. Each warrant entitles the holder to acquire one common share of Colossus at a price of CAD8.50. Dundee Securities, Clarus, Canaccord Genuity and GMP managed the deal. Proceeds will help fund the Serra Pelada gold and platinum mine in the state of Para, Colossus’ sole asset, which is expected to begin commercial production in 2013.
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CFR Continues Global Spree
Chile’s CFR Pharmaceuticals has agreed to buy 50.79% of Canada’s Uman Pharma for CAD26m ($26m), its second small international buy in less than a week. The pharmaceutical company continues to spend a $370m IPO war chest after buying a 41.88% position in Vietnam’s Domesco for $14m. CFR is making both a LatAm and EM-wide expansion push, to capitalize on rising incomes and economic growth across the globe. Prior to the recent purchases, it was present in 19 countries in Asia, the Americas and Europe, either through direct operations or joint ventures.
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BBVA Chile Plans MXP Bond
BBVA Chile is looking to follow BCI and Banco de Chile to Mexico’s domestic debt market. The bank is planning to issue up to MXN2bn ($149.1m) in bonds with a tenor of up to three years and a variable interest rate, according to rating agencies. The deal is rated AAA on a national scale. Banco de Chile is also expected to sell an up to MXP2.5bn 3-year bond, marking its debut in this market. Banamex and JPMorgan are managing that sale.
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Nafin Prepares Debt Sales
Mexico’s Nacional Financiera is authorized to sell up to MXP6bn ($ 447m) under a bond program in the Mexican bond market, according to a regulatory filing. Banamex is leading the transaction. Nacional Financiera last issued in the domestic market in 2010 when it priced at MXP7bn ($379m) dual tranche offering. At the time, the national development bank priced a 3-year MXP4.5bn tranche at TIIE+3bp, and a 5-year MXP2.5bn tranche at TIIE+2bp. BBVA Bancomer and Banamex acted as joint bookrunners for those bonds, which were rated AAA on a national scale.