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.
Category: Regions
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.
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.
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.
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.
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.
Panama City Gets CAF Financing
Multilateral CAF says it has approved a $120m loan for Panama’s ministry of finance and economy to improve sanitary conditions in Panama City. Terms were not disclosed and CAF officials could not be reached for comment.
Banco Popular to Issue Bonds
Colombia’s Banco Popular, part of Grupo Aval, says it plans to issue COP200bn ($111m) in local bonds with the possibility of increasing the amount by another COP100m depending on demand. The issue will have 4 pieces. Tranches due in 18, 24 and 36 months will be pegged to IBR and a 3-year piece will be pegged to IPC. Proceeds will be used for working capital. The notes are rated AAA and the bank will lead the sale itself.