OHL Mexico has appointed Rafael Villafanez as CFO, the unit of the Spanish concession operator says. He replaces Rafael Lira, who resigned in March, with the CEO Juan Luis Osuna fulfilling the CFO duties in the interim.
Category: Regions
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Santander Hires New Local DCM Heads
Santander has hired two new local DCM heads in Brazil and Mexico. It has hired Cristina Schulman to head Brazil DCM, replacing Ricardo Leoni who left the Spanish bank earlier this year to join JPMorgan. Schulman comes from Morgan Stanley where she held a similar position. In the interim, Leoni’s responsibilities at Santander are being handled by Eduardo Borges, head of credit markets for Brazil, until Schulman finishes gardening leave in late November. Meanwhile, Octavio Calvo is also joining Santander Mexico next week to head the bank’s DCM operations in that country. Calvo comes from BNP Paribas where he was managing director of fixed-income in Mexico. Prior to that, he worked for Calyon, and Wachovia Securities where he also headed DCM. Gerardo Freire, who was in charge of DCM for Santander in Mexico, is now focusing his energies on structured finance.
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UNE Close to COP Sale
UNE EPM Telecomunicaciones, the telecom unit of Colombia’s Empresas Publicas de Medellin, is targeting October 7 to raise COP300bn ($168m) in the domestic bond markets. In the first local bond sale to be done by a non-financial institution in several months, the issuer is set to chose among maturities of 1-15 years, paying a fixed-rate or spreads over the IBR, DTF or IPC. Correval is managing the sale, rated AAA on a national scale.
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Banco Falabella Set to Kick off Chile Bond Spree
Banco Falabella has concluded investor meetings in Chile, Peru and Colombia, and is looking to sell up to UF5m ($215m) in bonds in the Chilean market Wednesday, the first of what could be a string of debt sales in that country. Indeed, in contrast to international bond markets, domestic funding sources in Chile, Colombia and Mexico are increasingly being tapped by corporate borrowers. The lending arm of the Andean retailer is eyeing 21-year bonds paying a 3.85% coupon and amortizing in the final 5 years, and 7-year bonds paying 3.40% and amortizing in years 5, 6 and 7. IMTrust is managing the sale rated AA/AA minus on a national scale. Quinenco’s LQ Inversiones Financieras also wants to issue as soon as next week, and Santiago’s Metro is expected to follow.
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Daimler Issues MXP Floater
Daimler has priced a MXP1bn ($73m) 3-year bond at TIIE+50bp, according to banker on the deal. The car manufacturer saw demand reach 1.4x and pricing come in line with talk of TIIE + 40-50bp.The notes come with a guarantee from the company’s German parent. BBVA Bancomer and Santander managed the sale, rated AAA on a national scale. Daimler last came to market in April, when it priced a MXP500m 3-year bond at TIIE+34bp through Santander, following 1.4x in demand.
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Ford Credit Sells MXP Bond
Ford Credit de Mexico has sold MXP 1bn ($74m) in domestic floating-rate bonds, marking the company’s first local transaction since 2007. The 1.5-year deal priced at TIIE + 95bp, 5bp inside TIIE+100bp-area guidance. Demand reached 2.1x, according to a banker on the sale. Actinver, HSBC, IXE, Scotia Capital managed the deal, rated A2 on a national scale.
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Santander Mexico Sells Local Bond
Santander Mexico has raised MXP2.8bn ($206m) from a domestic 2016 bond that comes in line with guidance at TIIE+50bp, but smaller than the up to MX5bn size heard earlier. Santander self-led the deal, rated MxAAA.
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EPM Upgraded to BBB
Fitch has upgraded Colombian quasi-sovereign utility Empresas Publicas de Medellin (EPM) to BBB from BBB minus. This is set against a backdrop of improving macroeconomic conditions in Colombia and an absence of government intervention in the company, the agency adds. By investing in distribution companies outside of Colombia such as Panama, El Salvador and Guatemala, EPM has diversified cash flows and lowered the risk of intervention by its owner municipality of Medellin .For the last 12 months ending June 30 2011, the borrower reported a consolidated Ebitda of around $1.8bn against total consolidated financial debt of about $3.9bn.
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Exito Shows Colombian Equity Insulation
Colombia’s Grupo Exito got 1.7x demand for its COP2.502trn ($1.40bn) equity follow-on, in a sale that points to Colombia’s relative insulation against the volatility in the broader equity markets. The blue-chip retailer closed its sale period Friday and announced allocations Tuesday, having given the COP21,900 per-share price for the 114.27m shares at launch 3 weeks ago. That the price represented an 8% discount to the COP23,800 average price over the one-month period preceding launch helped Exito avoid the fate of state-controlled oil company Ecopetrol, which opened its own follow-on sale period in July only to see markets tumble and demand fall just short of the target. Shares closed at COP22,800 Tuesday. “Exito is a big company in a country with strong economic growth,” says a banker on the transaction. It is these types of companies that have allowed Colombian equity markets to keep bubbling over at a time when other LatAm activity has ground to a halt. Colombian issuers that have raised equity in the last few months represent leaders in their sectors such as Nutresa, Ecopetrol and Exito. This stands in contrast to the Brazilian pipeline, which contains companies that are further down the quality scale and less likely to interest investors in times of volatility, say bankers on the Exito deal. Meanwhile, Brazil’s TIM Particiapcoes is set to price a BRL1.85bn ($1.01bn), follow-on next week, marking what would be the first deal from hat country since July .But with parent Telecom Italia set to exercise its subscription rights, less than BRL610m worth of shares should hit the market. “It’s going to be very difficult to see many new deals in Brazil before the end of the year,” says a New York ECM banker. Mexico and Chile also have names in the pipeline, but none appear to be close to launching. Credit Suisse, Citi, JPMorgan, and Santander managed the international part of the Exito sale, with Corredores Asociados leading the domestic portion. Proceeds will help fund
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BCP Launches Exchange Offer
Banco de Credito del Peru has launched an offer to exchange any and all of its $120m outstanding in 6.95% 2021 subordinated bonds for recently issued6.875% 2026 fixed-to-floating rate bonds. Holders must also waive a provision in the original notes that keeps the Peruvian bank from accepting more than $70m worth of bonds in such an offer. In the transaction expiring October 24, accepting holders will receive an equal amount of new notes, multiplied by an exchange premium to be announced at a later date. Those accepting before an October 7 early deadline receive an extra $30 per $1,000 tendered. 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% per year after year 10. Bank of America Merrill Lynch and Morgan Stanley ran the initial sale and are also managing the exchange offer. The 2021 notes were originally issued in 2006.