Banco do Brasil has received approval from Brazil’s central bank to conduct commercial banking operations in China, according to a bank official, and is awaiting a license from Chinese regulators. BB would be the first Latin American bank to operate in China.
Category: Regions
Posted inDaily Brief
Colombia Set for Rate Decision
Colombia’s central bank is scheduled to make its monetary policy today, with many expecting the rate to remain at 4.5%. The bank said last month it sees Colombia growing at 4.5%-6.5% this year, and inflation remaining within the target range. Nomura cites low inflation and strong growth in forecasting no change in the rate until Q4 of 2012.
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Colombia’s Banco Popular Readies Bond
Colombia’s Banco Popular is set to raise up to COP250bn ($134m) next month. The bank is expected to price November 16, though it has yet to decide on tenor. In August, the bank sold COP400bn ($225m) in 3 series of local bonds, paying IBR+1.71% for a COP176bn 1.5-year, IBR+1.81% for a COP122bn 2013 and 3.68% for a COP156bn IPC-linked 2015 bond.
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Banco de Chile Sees Mid-November MXP Pricing
Banco de Chile could see a mid-November pricing for its debut MXP bond, but much depends on the regulatory process, says a banker on the deal. The borrower is expected to come with an up to 3-year tenor, after earlier filing a shelf to issue up to MXP 10bn of debt. While a size was not disclosed, S&P has given a AAA national scale rating to a proposed MXP2.5bn ($186m) issue. Banamex and JPMorgan are leading the transaction. Banco de Chile will be the third Chilean issuer to tap the Mexican domestic market following similar moves by Banco de Credito e Inversiones (BCI) and miner Molymet.
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Petrotemex Launches Loan Amendment
Petrochemical company Petrotemex held bank meetings in Mexico Thursday to extend the maturity out another 2 years on a $600m 3-year loan that closed in late 2010. HSBC and Credit Suisse are leading the amendment on a loan that was used to fund the company’s acquisition of Eastman Chemical’s PET business in the US. Pricing was tied to a leverage grid and will be left untouched. The loan paid Libor+300bp out of the box At the time, Inbursa, Santander, ING, Credit Agricole and Bancomext came in at the MLA level, while Scotia, Banco de Chile, Banorte and Bank of America participated as arrangers. Bank of Tokyo Mitsubishi, Bladex, Mizuho and Wells Fargo had committed as managers.
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Soriana Looks to Issue Next Month
Mexican retailer Soriana’s up to MXP4bn ($297m) domestic bond issue is likely to price over the next three weeks or so after being slowed down by the regulatory process. The 2014 notes were expected to price this week at a spread over the TIIE, Banamex, JPMorgan and Inbursa are managing the deal.
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Trafigura Preps Asset-Based Loan
The Mexican subsidiary of global trader Trafigura is expected soon to launch a 1-year asset-based loan of up to $350m into general syndication, after luring 4 banks into the trade at a senior level. Bookrunners include BNP Paribas, Bladex and Scotiabank, with Banco do Brasil also heard participating. Lending size will be based on a percentage of the underlying worth of the collateral, which in this case will be metal inventories and receivables. The structure requires the borrower to consistently demonstrate it holds a sufficient amount of assets to support the loan. The trading company has been sounding out banks throughout Latin America in an effort to augment its investor base. The structure remains relatively new for the region and, for instance, has been used in a similar manner in Colombia, where BNP Paribas also led a $180m reserve-base facility for Pacific Rubiales to finance oil and gas exploration. In that case, the value of the borrowing base was amended twice a year. Trafigura is one of the world’s largest independent traders in the oil and non-ferrous concentrates markets.
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Petroecuador Approves Merger of Subsidiaries
Ecuador’s state oil company Petroecuador has approved the merger of its Petroamazonas and Petroproduccion operating units as part of a long ongoing company restructuring. Petroamazonas, created from the nationalized assets of US oil company Occidental Petroleum in 2006, will absorb Petroproduccion, the exploration and production unit of the state oil company. Petroecuador hired Deloitte in 2010 to advise it in the restructuring process and the merger of these units stems from one of Deloitte’s recommendations, the non-renewable resources minister, Wilson Pastor, told a local daily earlier this week. The merger has already been implemented in some areas such as purchases and hiring and it’s expected to be completed by the end of 2012.
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Panama Fund to Sell More Bonds
Panama’s government-backed Fondo Fiduciario para el Desarrollo (FFD) is preparing to offer $89.5m in existing 7.125% 2026 sovereign bonds this week, says Diego Ferrer, Panama’s sub-director for public credit at Panama’s ministry of economy and finance. “Conditions in the market have been volatile, but Panamanian bonds have rallied, giving us a window to make a very attractive capital gain,” he says. The 7.125% global 2026s have been trading at 128-129 or at 4.45% on a yield basis. The ministry says while it is negotiating a price, it finds the 126-128 range attractive. The global bonds will be sold to Morgan Stanley, the underwriter, which will in turn sell the bonds to the public on a variable price reoffer basis at a later date. Panama filed with the SEC Wednesday and expects to close the transaction on Friday. The FFD was established in 1995 with the goal of providing financing for public sector projects.
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BCP Mops Up 2021s
Holders of Banco de Credito Del Peru’s 6.95% 2021s have agreed to exchange $117.04m of the notes for recently issued 6.875% fixed-to-floating rate 2026s, mopping up most of the $120m of existing instruments. Accepting holders got $1,078.38 worth of new bonds per $1,000 of the old ones, including a $30 early acceptance premium, or $1,048.38 if they participated after the early bird date but before the final expiration of October 24. Creditors also agreed to waive a provision in the original notes that keeps BCP from accepting more than $70m worth of bonds in such an offer. The new notes are the same as those offered on September 8, in a $350m sale. The NC10 bonds pay a fixed coupon and switch to a rate of Libor+7.708% after year 10. Bank of America Merrill Lynch and Morgan Stanley ran the initial sale and also managed the exchange offer. The 2021 notes were originally issued in 2006.