Securitization specialist Titularizadora Colombia has sold COP379.3bn ($198.1m) of 10-year MBSs, or TIPs as they are called locally, at a rate of 7.6% in the local markets. The issue was rated AAA on a national scale. The sale saw demand above COP384bn. Titularizadora previously sold COP258bn of senior RMBS bonds in September.
Category: Regions
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CFE Preps MXP Bond
Mexico’s Comision Federal de Electricidad (CFE) plans to raise up to MXP1.358bn ($99m) in the domestic bond market. The proposed 4-year notes, rated Baa1 globally and Aaa.mx locally by Moody’s, will pay a spread over TIIE. This will be the fourth issuance under the trust Fideicomiso de Administracion de Gastos Previos (FAGP) with up to MXP3bn total authorized under the program. Proceeds will go to cover infrastructure project expenses. Wholly-owned by the Mexican federal government, CFE’s bond issuance will be guaranteed by an indemnification contract between CFE and trustee Bancomext. November 29 is the expected issuance date. CFE most recently visited the domestic market in September when it raised MXP7bn from a reopening of its 2014 and 2020 bonds, after seeing more than MXP13bn in demand. Ixe is managing the transaction.
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Tupy Nabs Mexican Foundries in $439m Deal
Brazilian cast iron component maker Tupy has agreed to buy two Mexican foundries from Grupo Industrial Saltillo for $439m. A Tupy spokesman says the company financed the acquisition partially through its own cash reserves as well as with some credit operations, but declined to be more specific about financing or valuations. Deutsche Bank advised Tupy on the deal. The transaction gives Tupy control over the Cifunsa Diesel foundry based in the city of Saltillo, and Technocast, a foundry based in Ramos Arizpe that manufacture parts for automotive engines.
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VW Price Talk Heard
Mexico’s Volkswagen Bank is heard looking to pay TIIE+ 40bp on up to MXP1bn ($74m) floating rate bond in the domestic market. The 3-year 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 earmarked for funding operations. HSBC and Santander are managing the transaction, rated AAA on a national scale.
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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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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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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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Titularizadora Poised to Return
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.
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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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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.