Banco de Occidente is preparing to sell COP200bn ($112m) in shares in Colombia’s local market following the approval of its prospectus Wednesday. The beginning of the sale period should be announced within the next two weeks. The bank plans to sell 6.06m shares at COP33,000 each, as it looks to raise funds to increase its capital base. Existing shareholders have first rights on the offer. The bank’s own brokerage and Deceval are managing the sale.
Category: Regions
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Davivienda Upsizes, Raising $279m Equivalent
Colombia’s Banco Davivienda has sold COP500bn ($279m) in domestic bonds, upsizing from COP400bn after getting 3.4x demand. A COP90bn 2013 tranche pays the IBR+1.68%, a COP90bn inflation-linked 2015 tranche pays 3.60%, a COP159bn inflation-linked 2019 tranche pays 3.99%, and aCOP161bn inflation-linked 2022 potion pays 4.23%. Davivalores managed the sale, rated AAA on a national scale.
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Finandina Places Domestic Debt
Colombia’s Banco Finandina has sold COP72bn ($40m) in domestic bonds, after garnering some COP97bn in demand. A COP41bn 2013 tranche pays the IBR+2.09%, a COP12bn 2014 piece pays IBR+2.50%, and a COP19bn 2016 inflation-linked portion pays 4.20%. Corredores Asociados led the sale, rated AA+ on a national scale.
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Goldman to Issue Europeso
Goldman Sachs plans to issue up to MXP1bn ($80m) in floating rate Europeso bonds with talk heard in the TIIE plus 90-100bp range. The 3-year RegS only transaction is scheduled for the first week of September and will be listed on the Luxembourg Stock Exchange. The trade is being compared against Nissan Mexico’s MXP2.5bn 3-year, Banco de Credito e Inversiones’s (BCI) MXP2bn 3-year and BNP Paribas’s MXP2bn 5-year. Those bonds were priced anywhere between 40bp-50bp over TIIE, making the Goldman Sachs issue look cheap. But according to a banker watching the trade, this deal is coming wider to compensate for risk perception given that Goldman Sachs’s 5-year CDS is trading at 250bp versus 157bp for Mexican sovereign protection. Still from Goldman Sachs’ perspective, funding costs are still attractive as the notes are expected to be swapped back at Libor+180bp, he adds. The bonds are rated A1/A/A+ on a global scale.
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Celfin Tie-up to Give BTG Andean Path
BTG Pactual’s proposed merger with Chilean investment bank Celfin is seen giving the Brazilian investment bank a leg-up in establishing a beachhead to expand into the Andean region. The union between the two shops will create Latin America’s largest investment bank, BTG says, and marks its first Latin American expansion outside of Brazil’s borders. The two announced the beginning of merger talks Tuesday, but gave few details about how they are expected to proceed. It is thought however that BTG will most likely buy most or all of Celfin. “It looks like an acquisition given the difference in size between the two,” says a senior official at another Santiago-based bank. Celfin lists AUM at $5.5bn, while BTG has more than $60bn under management. A value for Celfin, a private partnership, is difficult to pin down. Celfin officials have expressed a desire for Brazilian exposure as part of their bid to become a regional investment bank after already expanding into Colombia and Peru. But gaining a foothold in the region’s largest market was clearly difficult. Brazilian rival Itau tapped into Chilean wealth management through a JV with Chilean brokerage Munita, Cruzat & Claro, in which MCC still operates independently. Celfin has cross-selling agreements with Mexico’s GBM, and its Brazilian unit. BTG CEO Andre Esteves told LatinFinance earlier this year that moves into Colombia, Chile and Argentina were likely next steps, and to expect operations there as soon as this year. BTG recently filed initial registration with the CVM, the first step towards an IPO. Founded in 1988, Celfin is owned by 6 partners, including Juan Andres Camus and Jorge Errazuriz.
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Ecopetrol Sale Falls Short
Ecopetrol got COP2.40trn ($1.34bn) in demand for its equity follow-on during the order period that closed last week, falling just short of its COP2.5trn target. The state-controlled oil producer launched the deal July 27, announcing it would sell 675.7m shares at COP3,700 each. Since then, global equity markets have taken a turn for the worse, with the share price dipping below the COP3,700 level. The overhang from future Ecopetrol sales – the government aims to sell up to 9.9% of the company in pieces beginning next year – also may have hurt. Still local analysts and brokers had expected Ecopetrol to squeak by. Orders came in from 228,000 accounts, owing to heavy marketing efforts focused on Colombia retail investors. Credit Suisse, JPMorgan and Bancolombia managed the sale.
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Peru’s BCP to Hit the Road
Banco de Credit del Peru (BCP) has mandated Bank of America Merrill Lynch and Morgan Stanley to arrange fixed-income investor meetings in Europe, the US and Latin America starting next week. The size of the deal has yet to be determined though a 144A/RegS may follow if market conditions permit. Investor meetings kick off on August 31 with scheduled stops in Switzerland on Monday, in Los Angeles and London on Tuesday before wrapping up in Boston and New York on Wednesday. The bank, established in 1889 is considered Peru’s oldest and largest bank, and is rated Baa2 and BBB by Moody’s and Fitch. BCP was last in the international markets in March when raised $700m in new 2016s that were priced at 98.815 with 4.75% coupon to yield 4.792% or UST+275bp. At the time BAML and JP Morgan acted as leads. BCP had been considering a global PES deal but opted for a USD issue instead.
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Transelca Eyes Debt Sale
Colombian power transmission firm Transelca has filed for a COP180bn ($100m) domestic bond issue, according to a company official. The company will be able to choose among maturities between 1-15 years. The official declines to name the managing bank, as the transaction, rated AAA on a national scale, still remains to be approved by the board.
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Isolux Unit Plans Local Issue
Cachoeira Paulista, controlled by Spain’s Isolux Corsan, is preparing a BRL200m ($125m) bond sale, it says. The 11-year bonds are to be divided into a fixed-rate tranche whose value adjusts with inflation and a tranche that pays a rate set to 7-year government NTN-B bonds. The exact amount of each and the interest rates they will pay remain to be defined. Santander is managing the sale, which has yet to be rated.
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America Movil Nears Decision on Mandates
America Movil (AMX) may mandate banks within the next two to three weeks for a potential international bond transaction to finance part of its MXP76.34bn ($6.12bn) buyback of Telmex shares, but it is still analyzing its funding options, according to a person familiar with the company’s plans. The wireless services provider is still evaluating size, tenor and currency for its potential bond offering, but can easily cover the costs of the stock purchase as it is sitting on $7.5bn in cash and recently closed a $4bn dual-tranche loan in EUR and USD. This comes after banks were heard pitching the credit on a bond trade amid expectations that it could possibly print a sub 4% coupon and smash regional records for pricing along this part of the curve. The company’s USD-denominated 2020s were trading at 3.95%-3.80% on yield basis Tuesday, or 165bp-150bp over, according to an investor. The company last came to the bond market in June 2010 with a EUR/GDP bond transaction, raising EUR1.75bn and GBP650m via Deutsche Bank, HSBC and BNP Paribas.