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.
Category: Regions
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.
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.
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.
OHL Lays Out Mexico IPO Terms
OHL aims to raise MXP15bn from an IPO spinning off 30%-35% of its Concesiones Mexico unit. The Spanish builder plans to sell up to 552.3m units, including a 15% greenshoe, or 480.3m shares without, according to regulatory documents. The sale would raise MXP14.9bn with the greenshoe or MXP13.0bn without, if priced at the MXP27 midpoint of the MXP24-MXP30 range. The issuer expects to price between November 4 and November 11. It should see 35%-40% placed in Mexico and the rest internationally. Of the 552.3m share total, 116.2m would come from a secondary issue. BBVA and Santander are managing the Mexican portion, with Credit Suisse, Santander and UBS handling the international side. OHL is building, and wholly owns, the Bicentenario elevated Mexico City toll road, Libramiento Norte de Puebla road, and latter phases of the Circuito Exterior Mexiquense road. It also operates the Circuito Exterior Mexiquense Phase I road, Carretera Amozoc-Perote road and Toluca International Airport, of which it owns 87%, 55% and 33%, respectively.
Sofol Sells Buyside on Cross-Border Peso
Mexican lender Consupago has raised MXP750m in 2013 global peso bonds. The BB minus Sofol specializing in payroll discount loans priced at 99.730 with a 9.875% coupon to yield 10.000%. The issue is denominated in pesos, with payments in USD, and will raise funds to increase the bank’s capital. BCP Securities and GBM International managed the sale, which was presented to investors last week and comes from Consupago’s $300m shelf.
UMS Chops Samurai Yield
Mexico has sold JPY150bn of yen-denominated bonds in Japan, getting a 1.51% yield that is down from the 2.22% it did in a similar deal last year. The 2020 bond guaranteed by JBIC priced at par with a 1.51% coupon, to yield yen Libor plus 50bp, the tight end of the 50bp-60bp talk. UMS got JPY300bn in demand and sold to 43 investors including banks, insurance companies and investment funds, according to Gerardo Rodriguez, Mexico’s deputy undersecretary for public credit. He notes that this is more than the 14 accounts buying in to last year’s JPY150m 10-year trade. The finance ministry cites the “favorable developments in the Japanese market as well as improved demand by investors” for the lower yield. Mizuho and Nomura managed the sale.
Fiat Investing in Brazil
Fiat says it plans to invest BRL10bn in its Brazil operations over the next 5 years. According to representatives from Fiat, the Italian car manufacturer plans to invest in product, technology, R&D and production capacity expansion. According to Anfavea, the Brazilian association of automobile manufactures, Fiat is the second-largest maker of automobiles in the country, after Volkswagen do Brasil.
IXE And Banorte Announce Engagement
Mexican banks IXE Grupo Financiero and Grupo Financiero Banorte say they have reached a non-binding agreement to consider a merger. According to IXE, the 2 financial groups have significant synergies, with the combined institution becoming the third largest in the country by either assets or deposits, and the only bank of its size controlled by Mexican shareholders. A combination of the 2 could help fend off an acquisition by a larger foreign competitor, according to a Mexico-based banker, while IXE’s retail operation can give Banorte greater presence in DF and the southeast. Details of the merger are not disclosed, but bankers say IXE is unlikely to sell for less than 2x book. JPMorgan is rumored to be advising IXE, but declines comment. JPMorgan advised IXE on its bancassurance alliance with RSA Mexico earlier this year.
Findeter to Issue Credit Deposit Notes
Colombian state-owned development finance agency Findeter is planning to issue COP250bn ($138m) in credit deposit notes via a Dutch auction. The issuance could be doubled if demand is strong enough, Findeter says. The AAA rated issue will be done in 4 tranches. An 18-month piece will pay a spread over IBR, a 2-year tranche will pay a spread over DTF and 3-year and 5-year pieces will pay a spread over IPC. Proceeds will be used to finance lending. The agency is structuring and managing the operation itself.