Colombian state-owned development finance agency Findeter has issued COP338.7bn ($187.0m) in credit deposit notes via Dutch auction, more than the COP250bn it had had originally planned. Total demand was COP814.2bn, says financial officer Fredy Vivas. The AAA rated issue was done in 4 tranches, all priced at par. A COP94.9bn 18-month piece pays IBR plus 1.05%, a COP88.5bn 2-year pays DTF plus 1.15%, a COP98.3bn 3-year pays IPC plus 2.57% and a 5-year COP57.0bn offers IPC plus 3.02%. Proceeds will be used to finance lending operations. The agency is structuring and managing the operation itself.
Category: Regions
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Pirelli to Invest in Argentina
Italian tire maker Pirelli says it plans to invest $100m in its Merlo facility in Argentina by 2013. The money will be spent on increasing production to 6m units a year from 5m in 2009. The increase in capacity will allow the company to double production in the SUV and light truck segments, it says. Pirelli, which has been in Argentina for 100 years, says that by the end of 2010, it expects Argentina revenues to reach $365m, up 55% from 2009. By 2013, it expects revenue to reach $500m.
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Darby Sells Stake in Mexican Company
US-based private equity firm Darby Overseas says its DLAMF fund has divested a 37% stake privately traded Mexican outdoor media company ISA Corporativo. It does not disclose the price. However, press reports indicate that Darby made its initial mezzanine investment in ISA in late 2003 for $16m. In the past, Darby executives have indicated that internal rates of return for private equity investments are usually between the high teens and low 20%s. Officials from both Darby and ISA Corporativo do not return calls for comment. This is the seventh Mexican portfolio company Darby has sold and the 11th for the DLAMF fund.
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IXE Could Drag Banorte Ratings
A merger of IXE with Banorte could negatively impact the latter’s ratings, according to Fitch, while the ratings of IXE could benefit in the long run. If an agreement is reached, Fitch foresees Banorte’s BBB rating being put on rating watch negative, based on preliminary conditions. Fitch says the transaction would be strategically positive for Banorte as it should enhance over time its competitive, commercial and financial position. However, in the near term, the deal could potentially have negative effects on its financial condition. Depending on the final price and settlement scheme, Banorte’s capitalization, which is already considered relatively moderate by Fitch, could be further pressured in the event that a deal comes with significant cash disbursements, ample goodwill, and/or material reduction on Banorte’s liquidity profile. Meanwhile, Moody’s says it will maintain its ratings on Banorte. Moody’s notes that the proposed acquisition is likely to have limited effect on Banorte’s financial fundamentals and franchise, based on its scenario analysis of pro-forma assets and equity of combined entities. IXE is small relative to Banorte, representing 16% of the bank’s equity as of June 30.
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CAF Makes Yen Stop
CAF has followed Mexico into the Samurai market, raising JPY14.4bn from Japanese institutional investors in a deal not guaranteed by JBIC. The Venezuela-based multilateral lender, an experienced issuer in Japan, priced a JPY9.8bn 2014 at par with a 1.56% coupon to yield yen Libor plus 110bp, in line with 100bp-120bp guidance. A JPY4.6bn 2015 came at par with a 1.82% coupon to yield yen Libor plus 130bp, in line with 120bp-140bp guidance. Mizuho and Nomura managed the sale, rated A+. CAF raised $74m equivalent from 2014 bonds in its previous Japanese sale in May. Mexico raised JPY150bn in 2020 bonds this week via a JBIC-backed deal, also through Mizuho and Nomura. Panama is set to hit the Japanese market next year, through Daiwa and Mitsubishi.
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Panama Mandates Samurai
Panama has selected Daiwa and Mitsubishi to manage a planned bond sale in the Japanese market, according to DCM bankers. Officials at the banks and at Panama’s finance ministry do not respond to requests for comment. Panama has previously communicated its plan to issue in Japan, and is considering a JBIC-wrapped $500m equivalent deal at 10 years, to be done by the end of January.
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Mexican Real Estate CCD Raises Funds
Artha Capital has raised MXP2.44bn from certificado de capital de desarrollo (CCD) investors, to support a private equity fund targeting urban infrastructure development in Mexico. The fund, which will reach MXP2.57bn once Artha’s own contribution is included, will develop basic infrastructure – roads, electricity and water – on 9 parcels of land in Mexico, before seeking to resell to commercial, residential or industrial real estate developers. “If you go to smaller cities and suburbs [of large cities], you’ll see that basic infrastructure is sorely lacking,” Carlos Gutierrez, founding partner of Artha tells LatinFinance. He adds that although many firms are good at building and selling real estate in Mexico, they are often inefficient in planning. Artha can aggregate the planning process to improve it, Gutierrez says. The fund will develop 9 large plots in different Mexican cities, each of 300-1,200 hectares, Gutierrez says. The 2020 CCDs priced at MXP100 each. They were distributed 57% to Afores and the rest to private pension funds, insurance companies, fund managers and government development bank Banobras, which took 19.5%. Investors will get 100% of their principal investment, plus a 12% preferred return, with additional proceeds going 80% to investors and 20% to Artha. Bank of America Merrill Lynch and Grupo Bursatil Mexicano managed the sale. Gutierrez notes that the deal took about 12 months from start to finish. Gutierrez, ex-LatAm chairman at Merrill Lynch, co-founded Artha last year with former Consorcio Ara CEO German Ahumada.
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EPM Buys Guatemala’s EEGSA
Guatemalan distribution utility EEGSA has been acquired by Empresas Publicas de Medellin (EPM) for $605m in cash, plus assumption of existing debt. EEGSA had been owned by TECO Guatemala, Iberdrola and Energias de Portugal, which combined had an 80.9% interest in the company. “Today’s announcement allows TECO Guatemala to continue our focus on generating reliable electricity for the residents of Guatemala through our 2 remaining power generation assets,” says TECO Guatemala president Phil Barringer. Citi advised TECO.
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Elementia Postpones Issue
Mexico’s Elementia has postponed the issue of an MXP3bn 2015 bond due to regulatory delays, according to a banker on the deal. The producer of copper, aluminium and cement products was meant to come to the market on Tuesday but expects to be able to issue the bond at the end of October, adds the banker. The proceeds of the issuance are expected to refinance about half of the debt from any existing $450m 5-year term loan. Moody’s assigned a Ba3 rating to Elementia’s proposed MXP3bn senior unsecured 2015 notes and a Ba3 corporate family rating to Elementia with a stable outlook. Inbursa and Arka are the leads.
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Ignia Fund Gets 50% of Barafon
Mexico-based VC fund Ignia is investing MXP38.1m ($3.1m) in Barafon, a provider of public telephony and related services to low-income customers. With the investment, the fund gains a 50% stake in the company, says an Ignia spokesperson. She also says that the payment will be done in 3 installments, 1 per year until 2012. “With funding from Ignia we will rapidly expand our network of micro-businesses, while developing additional products and services that are economically and socially beneficial to the base of the socioeconomic pyramid,” says Jose Gonzalez, CEO and founder of Barafon, in a statement. Barafon has over 600 phone booths throughout 4 Mexican states.