Colombian mortgage securitization specialist Titularizadora is planning to issue COP379.3bn ($198m) of fixed-rate MBS in the local markets today. The issue is rated AAA. In September, Titularizadora sold COP258bn of senior RMBS bonds after generating a book that was 1.5x oversubscribed. The bonds were backed by loans originated by Bancolombia and Davivienda.
Category: Regions
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Guatemala’s Industrial Preps More DPRs
Guatemala’s Banco Industrial will likely come to market next year with another diversified payments rights (DPR) bond, Luis Jorge Sifontes, assistant director of external financing, tells LatinFinance. “For us it is an efficient [way to raise funding] because it gives us better pricing,” he adds. It most recently raised $205m through a dual-tranche DPR issue. The 7-year was split into fixed and floating rate portions paying around mid 5% and L+237bp respectively. It also placed a 10-year at around L+350bp. On these types of trades, the bank has traditionally mandated Wachovia, though Citigroup led a transaction in 2007. The bonds are backed by remittances that the bank receives from companies and families. The borrower has also tapped the international markets twice with subordinated issues, most recently in July when Bank of America Merrill Lynch (BAML) led a $150m 10-year Tier 2 issue that was priced at par to yield 8.25%. However, Sifontes says the bank has no need to raise more subordinate debt and is unlikely to return to the market in the near-term with these kinds of transactions.
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Carrier Signs JV with China’s Midea
Brazil’s a global air conditioning and refrigeration company Carrier, has decided to create a joint venture company with China’s Midea Group that will distribute products in the largest markets in South America. The deal will give Midea a 51% stake in the new company with Carrier retaining the rest. The venture will make use of Carrier’s air-conditioning and ventilation production assets in Brazil, Argentina and Chile. The company declined to say how much these assets are worth. Midea is one of the leading air conditioning and white appliance manufacturers in China.
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Ferrovial Sells 40% In Chilean Toll Operator
Spain’s transportation infrastructure investor Ferrovial sold its remaining 40% stake in Intervial Chile, a toll road operator, to Colombia’s Interconexion Electrica (ISA) in a deal valued at EUR160m (US$216m). The transaction is part of a purchase option that ISA had the right to exercise as agreed in Sept. 2010 when it purchased the initial 60% stake from Ferrovial. Intervial Chile currently operates 5 different toll road concessions in the Andean country. ISA officials said no advisors were involved in this option exercise agreement and noted that the final value of the deal could vary by the time of the closing, expected over the next 90 days. Colombia’s ISA has operations in Central America as well as Panama, Chile, Colombia, Brazil, Bolivia and Peru.
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Banco Popular Puts Local Bond on Hold
Colombia’s Banco Popular, which had been expected to raise up to COP250bn ($134m) Wednesday in the local bond markets, has decided against such a move. The locally AAA-rated bank is likely to wait until next year in light of the volatility emanating from Europe, says a person familiar with the situation. The bank has no immediate funding needs, but next year’s issue could be larger and may take place as soon as February, he adds.
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Banobras Prices MXP Bond
Mexico’s Banobras was able to upsize a multiple-tranche bond in the domestic market yesterday to MXP7bn ($513m) from MXP5bn and price inside expectations after generating some MXP19bn in demand. The development bank priced a MXP5bn 4-year floating rate bond flat to TIIE, a MXP500m 10-year UDI-denominated piece at Udibonos+50bp and a MXP1.5bn fixed-rate portion at Mbonos+70bp. Banobras was heard looking to pay TIIE 0bp-5bp on the 4-year floater, Mbonos+80bp on the 10-year, and Udibonos+60bp for the inflation-linked 10-year. Bank of America Merrill Lynch and Banamex managed 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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Contour Launches Colombia IPO
ContourGlobal LatAm has launched a COP273bn ($143m) IPO, the first such transaction from an issuer in one of the region’s large markets since July. The power generator with assets in Colombia and Brazil is offering 27.6m shares, or about 28% of itself, at COP9,900 each, in a sale period open through December 5. The issuer, part of US-based ContourGlobal, is raising funds to develop projects. The company’s main operating assets include a stake in the Termopaipa and Termoemcali power plants in Colombia, as well as a wind farm and two hydroelectric projects in Brazil. Bancolombia and Corredores Asociados are managing the sale.
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TOClub in Default, Talks Forbearance
Newland International Properties, the owner of troubled Trump Ocean Club Hotel & Tower (TOClub), on Tuesday missed its first $31.4m capital payment due on $220m in 9.5% 2014 bonds and is now asking debtholders to sign a forbearance to stop all debt outstanding from becoming due immediately. “The company will miss the principal payment today,” John McCormack, managing partner for the Gapstone Group, an advisor to Newland, tells LatinFinance. Newland and Gapstone are asking bondholders to sign a forbearance that would allow the company to finish construction on TOClub and prevent the debt acceleration. McCormack says that no deal has been struck yet to restructure the debt outstanding and that it still remains to be seen if Trump will accept a reduction of its licensing fees to make TOClub apartments more attractive for buyers. Under the terms of bond indenture, an acceleration of the debt would subordinate Trump’s $38.9m fee to other payments, but it would also block Newland from using project proceeds to fund working capital to finish the project. TOClub bonds are rarely traded but they were being quoted at 62.50 or at 29.115% on a yield basis, after recently falling to 55.00. The Panama based luxury project has suffered from a strain on cash flows after cost overruns and buyers showed an unwillingness to close on apartment purchases.
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Chilean Court Backs Codelco, Freezes Anglo Stake
A Chilean court on Tuesday issued an order to prevent global miner Anglo American from selling its remaining 75.5% stake in the Anglo Sur copper mining complex, following a controversial sale to Japan’s Mitsubishi. Anglo struck a $5.39bn deal last week to sell a 24.5% stake to Mitsubishi in an attempt to sidestep an option to sell a full 49% share to state-owned Codelco at a cheaper price in January 2012. The sale to Mitsubishi represents a multiple of 18.1x 2010 Ebitda, far higher than the 10.2x 2010 Ebitda multiple Anglo would realize if it sold a 49% stake to Codeco for $6bn, as stipulated in the option. Codelco filed an injunction following last week’s deal with Mitsubishi, “to stop Anglo’s threat of selling additional shares”, says a Codelco spokesman. Officials at Anglo American could not be immediately reached for comment. Codelco doesn’t question the sale to Mitsubishi, the spokesman adds, but it still expects Anglo to sell it a 49% stake as stipulated. According to the option, Codelco can buy a 49% stake as long as Anglo still holds a 100% in the venture, otherwise it must buy less. Codelco argues, however, that Anglo had already received notice of its intentions to buy the 49% stake and as such it must still sell that piece of the business next year.
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IIC Signs $50m loan with Nordic Investment Bank
The Inter-American Investment Corporation (IIC) will use a $50m, 10-year term loan from the Nordic Investment Bank to promote renewable energy projects in Latin America and the Caribbean. The facility provides the flexibility of tapping different maturities. “These projects are long term so this facility matched the project,” says Juan Eduardo Zuluaga, IIC’s finance and risk management division chief. The interest rate will be defined at the time of disbursement, but can either be fixed or over Libor. He adds that the spread, which will be negotiated every time the IIC has a request, will be priced related to its AA rating. “The loan is the first step to create a strong relationship with the Nordic Investment Bank,” he says.