Inbursa has sold MXP5bn in 3-year bonds on an orderbook that was 1.7x oversubscribed, according to a banker at one of the leads. The bonds pay a spread of TIIE plus 20bp, in line with guidance. Bank treasuries and mutual funds were the main buyers, with some participation also coming from private banks. Use of proceeds is to maintain the bank’s liquidity profile, says the banker. The transaction was through Inbursa and BBVA Bancomer and is rated AAA on a national scale. The deal follows on from the bank’s August bond issue, its first since it was set up in 1993. The bank issued MXP5bn in 5-year paper at TIIE plus 24bp.
Category: Regions
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Oaxaca State Achieves Baa2 Rating
Moody’s has assigned a Baa2 rating to a MXP250m ($20m) enhanced loan the State of Oaxaca obtained from Scotiabank. The ratings reflect the creditworthiness of the state. The loan is denominated in MXP, with maturity of 10 years and a grace period of 12 months for principal payments. The loan will pay an interest rate composed of the 28-day Mexican interbank rate, plus a spread.
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OHL Lays Mexico IPO Foundation
Spain’s Obrascon Huarte Lain has applied for an IPO on the Mexican Bolsa, according to regulatory documents. The Spanish builder and concession operator had earlier said it was considering the sale, and does not give specific detail for the deal in its filing. It has hired Credit Suisse, Santander, BBVA and UBS to manage, according to sources familiar with the transaction, and is targeting a November sale. The listing of the OHL Concesiones Mexico unit should raise $500m to $1bn, according to market sources, and give Mexico the large debut investors have been waiting for during a year characterized by small and mid cap IPOs. 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.
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Venezuela, Argentina Get CAF Financing
Venezuela is getting 2 loans worth a total $700m from CAF, one for $600m to finance the Tocoma hydroelectric plant and the other, for $104m, to improve mass transit. CAF also approved a $500m loan for Argentina to be invested in an electric power line project. Terms were not released.
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Titularizadora Colombiana Issues RMBS
Colombian mortgage securitizer Titularizadora Colombiana has issued COP360bn ($201m) in residential mortgage backed securities due in 2020. The AAA rated notes priced at par to yield 2.20%. Demand was 3.5x the amount offered, the company says in a statement. About 43% of the notes are backed by mortgage loans originated by Bancolombia, 26% by BCSC and 31% by Davivienda. The company handled the issue itself.
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Bidders Prequalify for Peru Oil Blocks
Offers from 8 companies have prequalified to compete for 14 oil and natural gas blocks in Peru, says state oil contracting agency Perupetro. The investment needed to develop the blocks is estimated at $700m over the next 7 years, Perupetro says. The bidders are Argentina’s Tecpetrol, Colombia’s Ecopetrol, a consortium of Repsol, Ecopetrol and YPF, a consortium of YPF and Petrouruguay, UK-based Pitkin Petroleum and Sinochem unit Emerald Energy.
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Lima Bolsa Set to Catch Fish IPO
Peruvian fishery Pesquera Exalmar is preparing to IPO in Lima, targeting an October 28 float. If successful, the deal would be the first Peru IPO since Interbank holdco Intergroup sold shares in 2007. Exalmar plans to sell 57.5m primary units and 54.4m secondary locally, as well as 119.9m primary shares internationally. The issuer does not indicate a value or price range, though says the sale should raise more than $100m when referring to proceeds in the prospectus. Proceeds are marked for repaying debt from recent acquisitions, buying boats, and expanding the footprint in Peru’s southern coast. The fishmeal and fish oil producer would be the second of Peru’s fisheries to go public, after Copeinca. Exalmar had gross income of $37.48m in 2009 and $47.43m in 2008, according to its prospectus. Santander, Citi and Interbank are managing the sale.
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Sare Sets Target Date
Mexico’s Sare Holding plans to price an equity follow-on October 28, according to regulatory documents. The homebuilder seeks to raise up to MXP805m through a sale of up to 317m primary units. Shareholders still must approve the sale October 20. BBVA and Santander are managing the transaction. Sare aims to increase production and improve efficiency following a debt restructuring, using proceeds to provide working capital for completing projects. Sare shares closed Tuesday at MXP2.83.
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Scotia Sinks, Compartamos Swims
Scotiabank Tuesday raised MXP2.67bn in Mexico, short of the MXP3.5bn it was aiming to issue and wide to expectations. The bank issued a $2.312bn 5-year at TIIE plus 40bp and a MXP358m 7-year at TIIE plus 49bp. Price talk for the AAA rated bonds had been in the 35bp area for both tranches according to an investor. Another investor adds that several banks have already issued this year, and so the buyside has sufficient AAA rated and bank paper. The bonds were issued to refinance MXP2bn that was due in September, MXP700m maturing in November and MXP800m due in December, according to investors. Meanwhile, Banco Compartamos was oversubscribed, as investors considered the spread and the AA rating attractive. The microfinancing bank that lends only to women issued a 2015 bond at 130bp, with the book 1.6x oversubscribed and closed in under an hour, according to a banker at sole lead BBVA Bancomer. Guidance had been 125bp-135bp, refined from an earlier 130bp-140bp over TIIE. The bonds are 50% amortizing in the 4th year and 50% amortizing in the 5th year. Compartamos was sold to banks, private banks and asset managers. It is the longest tenor issued by the bank, with previous bond issues only going up to 3 years, adds the banker. Proceeds will be used to extend its lending portfolio.
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Televisa Returns With 10-Year Jumbo
Televisa Tuesday issued a much anticipated MXP10bn local 10-year that had been expected September 9 but was cancelled at the last minute. The book was 1.3x oversubscribed and the bonds priced in line with guidance of Mbonos plus 135bp, says a banker at one of the leads. The main buyers were institutional investors, including Afores, private banks, investment funds and insurance companies. A month ago, investors said they were expecting the issue to price at about 120bp. At that time it was said that the bond issuance was cancelled because of volatility in local markets, and there was talk of Televisa seeking a dollar tap instead. However, some have since speculated that the offer was pulled because the issuer would have had to disclose an investment made in Univision. Televisa said October 5 it is investing $1.2bn in Univision, the US Spanish language broadcaster, in a deal that implies an equity valuation for the target of around $2.3bn. The market rewarded the buyer, sending Televisa stock up 13.75% on the day. HSBC and Santander managed the bond sale, rated AAA on a national scale. Proceeds will be used to strengthen the company’s financial position.