America Movil (AMX) has raised JPY12bn ($156m) through in dual tranche issue, marking its debut in the Samurai market. A 3-year JPY6.9bn tranche was sold at par to yield 1.23% at yen Libor+80bp, while a 5-year JPY 5.1bn bond was priced at par to yield 1.53% or yen Libor plus 100. Both priced in line with earlier guidance of yen Libor+70-90bp for the 3-year and +90bp-110bp on the 5-year. “This is the first time a Latin America corporate has tapped a Samurai transaction without a JBIC guarantee,” notes a person familiar with the transaction. The deal marks the first corporate issuance in this market in about five years, and should pave the way for other LatAm issuers to follow suit. The Samurai follows 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. The Samurai transaction was 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). AMX is rated A2/A/A.
Category: Regions
Scotia Buys Colpatria Stake
Colpatria has agreed to sell a 51% stake to Canada’s Scotiabank in a transaction valued at around $1bn, putting an end to months of speculation over which foreign entity would lay claim to Colombia’s fifth largest financial group. It is thought to have paid a premium to expand its presence in Colombia, but it beat out other interest parties in a market with increasingly fewer M&A opportunities. Brazilian banking powerhouses Itau and Banco do Brasil were also heard expressing interest, but in the end Scotia took poll position after agreeing to pay $500m in cash and 10m shares for the stake. Colpatria also has the option to sell Scotia the remaining stake at a “fair value” after 7 years. The 10m shares were worth $510m at the previous CAD51.73 closing price. Bank officials spot the P/E valuation at 12x and the price/book at 3x, while analysts see it at 3.0x-3.6x “There is a big potential for growth in Colombia, and Scotia sees it. It is a high valuation compared to the regional average,” Felipe Toro, FIG analyst at Interbolsa, tells LatinFinance. He sees the price/book value at about 3.6x, compared to a regional average of about 2.6x for banks. With the purchase Scotia bank is buying a bank with a market share of just 5%, but officials at the Canadian bank highlight the 20%+ credit growth in Colombia. It also point to Colpatria’s strengths in mortgages and credit cards, which expands Scotia’s scope beyond its corporate focus. “Canadian banks came out well from the financial crisis. Unlike internationals from other parts of the world they aren’t pulling out, but are retrenching in the region,” says a New York-based FIG analyst. He notes price/book valuations in Colombia vary a bit, with Bancolombia at 2.2x and Davivienda at 1.7x, but generally they are higher than the Latin American average. “Colpatria is an attractive asset in Colombia, as it is dedicated to low-income consumers. Also, the opportunities in this consolidating market are getting fewer and fewer,” he add
Credito Real Files Shelf
Mexico’s Credito Real has filed a shelf to issue bonds in Mexico’s domestic bond market. The preliminary filing gives no timing and size details. Ixe will be managing the transaction.
Banco de Chile Inches Closer to MXP Debut
Banco de Chile seems to be moving closer to its local Mexican bond debut after S&P assigned an AAA national scale rating to the proposed MXP2.5bn ($186m) issue. 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 in the local Mexican market. 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 Chilean miner Molymet. Banamex and JPMorgan are leads.
Cemex Avoids Margin Step-Up
Mexico’s Cemex has made a $131m final prepayment under its 2009 financing agreement, allowing it to avoid a 50bp hike in interest expenses and saving it $37.5m annually, Maher Al-Haffar, the cement company’s VP of investor relations, tells LatinFinance. “We have done a lot of things in the first part of this year and last year to avoid step-ups,” he says. “We are comfortable, as our next maturity is not due until 25 months from now.” The company has now reduced the outstanding amount on the financing agreement by about $7.66bn – more than half of the original $15bn originally owed on bank loan. “This is definitely positive and gives us calm,” says Jerry Orosco, a Cemex bondholder and VP at Intercontinental Asset Management. Cemex 2020 bonds jumped a point yesterday to 68.5 on the back of the news. The company is expected to issue third quarter results next week.
Iochpe Buys Mexican Parts Supplier
Brazilian commercial and light vehicle parts producer Iochpe-Maxion has agreed to acquire Grupo Galaz, a Mexican auto parts supplier, for $195m. The move comes as part of Iochpe’s plans to expand globally – the company earlier this month announced the $725m acquisition of US-based auto-parts supplier Hayes Lemmerz. Apart from a small-scale military vehicle chassis export program, this is Iochpe’s first step toward moving into the chassis business in the US market, a company official says. The Mexico acquisition makes sense in this context, given its proximity to the US and the difficulty of exporting such heavy equipment from Brazil. The Grupo Galaz announcement means Iochpe can now reach the same types of customers as it has in Brazil. The deal with Grupo Galaz, which produces side rails for commercial vehicles and supplies North American component makers, was handled internally, he says. Grupo Galaz reported net sales of $133.7m from January to August 2011, according to filings. The deal is subject to approval.
Santander Retaps in Mexican Market
Santander reopened its 2016 bond Wednesday for another MXP1.3bn ($96m), pricing the transaction at TIIE+50bp, says a banker on the deal. The original MXP2.8bn issue was priced at the same spread in September. The bonds are rated AAA on a national scale. Proceeds from the self-led deal will be used for general corporate purposes.
Slim Miner Changes CEOs
Minera Frisco, the Mexican mining company controlled by Carlos Slim, has named Alejandro Aboumrad as CEO. He replaces Justo Wong, who resigns for personal reasons. Aboumrad was previously CEO at Slim’s infrastructure company Ideal. Frisco was spun off in January from the Crupo Carso holdco.
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.
Banregio Preps MXP Issue
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.