Mexico’s Banregio has filed a shelf to issue up to MXP5bn ($374m) in the domestic market. The bank has given no details on timing or structure. Ixe is managing the program. Banregio last tapped the domestic bond market in June 2007 when it priced an 8-year MXP750m floater at TIIE+130bp. BBVA Bancomer led the 2007 transaction.
Category: Regions
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UNE Readies COP Bond
UNE EPM Telecomunicaciones, the telecom unit of Colombia’s Empresas Publicas de Medellin, plans to sell COP200bn-COP300bn ($102m-$153m) of domestic bonds on Thursday. The deal originally intended to hit the market in September features 7 and 12-year tranches each paying a spread to the IPC. Correval is managing the sale, rated AAA on a national scale.
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Newland Creditors in Informal Discussions
A majority of creditors holding US$220m in 9.5% 2014s issued by Newland International Properties are in informal discussions as they await a response from the company regarding a $31.4m payment due in November. The borrower will need more time but bondholders are likely to show some flexibility on payments rather than force an acceleration that would trigger a default, say an institutional investor. Newland has hired Gapstone as a financial advisor and is working on a proposal to put to creditors. “Everyone wants to be constructive. Everyone believes the sponsors have integrity and have done the right thing,” the investor adds. Hopes are that the Panamanian resort will be able to turnaround slumping sales by adjusting the cost structure. “Credits want to see what the company advises before they decide to get more organized or seek legal counsel,” he adds. The bonds are now being quoted in the 70s though no trading is taking place. This comes after Fitch downgraded the senior secured notes to CCsf in late September, citing delivery delays on finished units for the Trump Ocean Club hotel developed by the borrower. As of June 30, Newland held $12.8m in restricted cash, of which $10.5m was slated for a debt service reserve account, the agency said at the time. It noted that debt service was becoming dependent on collections from present and future unit sales. Newland International issued the $220m 2014 NC3 bonds in 2007 via Bear Stearns, pricing them with a 9.5% coupon to yield 10.25%.
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BPZ Set for Lima Listing
BPZ Resources, the US-based E&P company operating in Peru and Ecuador, has been approved to list on the Lima Stock exchange. The timing remains to be determined. BPZ does not announce any new equity capital to be raised in Peru.
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Peru Inches Closer to Mandate
Peru may mandate banks this week for an international bond transaction, according to officials at Peru’s Ministry of Finance. The country is analyzing a variety of funding options, but has expressed a strong interest in sol-denominated debt. The officials declined to comment about timing, tenor and size, but said the sovereign is closely monitoring the market for windows of opportunity. In July, Peru filed an SEC shelf to issue up to $5bn in new debt securities. It last issued in the international markets in November 2010 when it sold $2.5bn in dollar and sol-denominated debt (Baa3/BBB minus) in a transaction that was led by Bank of America Merrill Lynch and Morgan Stanley. At the time, the sovereign raised $1bn in new 2050s that priced at 96.164 to yield 5.875%. It also raised $1.5bn equivalent through a retap of sol-denominated 7.84% Global 2020s, reopening them at 114.718 to yield 5.75%. The 5.625% 2050s have been trading at around 105-107 to yield 5.32% on the bid side.
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Venezuela Limits Allocations, Supply
By placing about 60% of its new $3bn 2026s among public sector banks, Venezuela is in effect limiting short-term supply damage in the international markets as much of the paper will be drip fed through the country’s FX platform, or Sitme, says Barclays. “…[banks] are expected to sell this bond to the central bank so that it can resell it through the Sitme,” the shop noted Monday after the government released the final results of the transaction. While international investors may be relieved that supply will be limited, the government’s strategy is less positive for Venezuelans which will receive fewer hard currency assets than they might have expected and will suffer from further upward inflation pressures as a result, it added. Public financial entities were allocated 100%, while insurance companies got about 82% of what they bid on. Pricing on the 11.75% bond was set last week at 95 last week. Credit Suisse acted as sole lead manager and coordinating agent along with Evorfinance Mosnarbank.
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AMX May Price Samurai This Week
America Movil (AMX) is expected to price a Samurai bond as soon as this week after guidance was heard released at yen Libor plus 70-90bp for a three-year fixed-rate tranche and plus 90bp-110bp on a fixed-rate five-year. The deal marks the first corporate issuance in this market in about five years and is an important litmus test for other LatAm blue-chips that may want to tap Japanese investors. Brazilian oil giant Petrobras was the last LatAm corporate to raise money in the Samurai market when it issued a JPY35bn 2.15% 10-year in 2006 at yen Libor+27bp. Leads were unavailable for comment. A Samurai would follow AMX’s $2bn 5-year bond and $750m retap of its 2040s in which it locked in the second lowest coupon ever achieved by a telecommunications company. AMX issued a CHF270m 2016 bond in August that came with a reoffer price of 99.775 to yield 2.039%, or mid swaps plus 86bp. AMX is rated A2/A/A. The Samurai transaction is being led by Mitsubishi UFJ-Morgan Stanley and Mizuho. This comes after America Movil also recently met investors in Europe via Deutsche Bank. Japan Credit Rating Agency has assigned an A rating with stable outlook to Japanese yen-denominated bonds from America Movil (AMX).
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Holcim Ready for Mexico Debut
The Mexico unit of Holcim is still monitoring the domestic bond market to issue up to MXP2bn ($151m) in what will be its debut issue in this country. The cement company originally had plans to price last week subject to market conditions. The bonds, rated AAA on a national scale, will be guaranteed by its Swiss parent. Holcim is considering a 3-year floater and 10-year fixed rate bonds. Proceeds are to be used to refinance debt. BBVA Bancomer, Banamex and Santander are handling the transaction.
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Pemex and Sacyr United in Repsol Bid
Despite falling just short of having sufficient shares to take control of Repsol, Pemex and Sacyr-Vallehermoso are keeping their agreement to pool their resources in their bid for the Spanish oil firm. Together both companies now hold 29.5% of Repsol, putting them within spitting distance of the 30% required for a full takeover bid. The Mexican state-owned oil producer and the Spanish construction company agreed in August to pool their voting power to obtain maximum representation on Repsol’s board. Pemex has doubled its position to reach 9.49%, but is still shy of the 9.8% stake it committed to in the agreement. This comes after Pemex retapped its 6.5% 2041s last week for another $1.25bn, pricing it 102.131 to yield 6.339% or 315bp over. The bonds closed at 104.625 mid market Friday after strong day in the credit markets.
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Swedes Finish with 98% of Chile’s CTI
Swedish home appliances maker Electrolux has reached 97.79% ownership in Chile’s Compania Tecno Industrial (CTI), following the close of a tag-along offer. Electolux bought 64% of its Chilean peer in August for $691.5m equivalent from Sigdo Koppers, and has now spent an additional $570m equivalent. It offered investors the same CLP34.87 ($0.07) per share for remaining CTI shares and CLP325 per share for CTI’s listed Somela unit. CTI is to be consolidated into Electrolux this month.