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.
Category: Regions
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.
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.
White & Case Names Mexico Partner
US-based law firm White & Case has elected Mexico City-based Sean Goldstein as partner in its global project finance practice. He has experience representing sponsors in a wide variety of infrastructure and energy projects as well as in asset finance work. Goldstein is one of 35 new partners elected for 2011.
PDSVA to Offer New Bonds, Swap
PDVSA says it will sell $3bn of 2017 bonds in the local market, with further details about the offer due October 18. As with previous government offerings, investors will be allowed to buy the dollar-denominated bonds with VEB. The offer is directed at individuals and businesses with the “sector productivo nacional” designation. The state-backed oil company also plans to offer holders of its 2011 bonds an opportunity to exchange them for 2013 bonds, with further details to be announced in coming days. PDVSA does not name banks, through Citi is rumored to be on the transaction.
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.
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.
Total and Gazprom Partner in Bolivia
French oil company Total has signed a farm-out agreement in which it will transfer a 20% interest in Bolivia’s Ipati and Aquio licenses to Russia’s Gazprom. As a result, Total, the operator, will hold a 60% stake, Argentina’s Tecpetrol 20% and Gazprom the other 20%. Terms of the deal were not disclosed. Total has been active in Bolivia since 1996 and produced 20,000 barrels of oil equivalent per day in 2009.
CABEI to Increase LatAm Funding
CABEI will look to increase the percentage of funds which come from LatAm capital markets from the current 10%-17% to 25%-30% over the next 4 years. “LatAm markets have become more of a priority as they know us better and are able to appreciate our credit profile, which is something we expect to translate into being able to issue at more attractive spreads,” Jose Felix Magana, treasurer of CABEI tells LatinFinance on the sidelines of the IMF annual meeting. Colombia, Mexico, Dominican Republic, Costa Rica, Guatemala, El Salvador and Honduras are markets CABEI would look to return to in order to issue bonds. It will also issue CP in new markets, such as Venezuela, Peru and Chile, adds Magana. CABEI needs to raise $750m in and will consider issuing bonds with maturities of 10 years or between 3 and 5 years. The first LatAm market it would look to issue in is Colombia, where it would look to issue between $150m and $250m worth of bonds, though he says maturity and timing is yet to be decided. Magana adds that either late this year or early next year CABEI is looking to issue up to 4bn Thai baht, as swap levels in Thailand and other Asian markets are attractive, Magana says. CABEI could also issue paper for between $150m and $250m in Europe, he adds.
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.