Crediamigo, a payroll discount lender specializing in loans to government employees, has signed a MXP731m loan secured by its credit portfolio. “This is almost a privately placed securitization, and the next step should be a public securitization,” CEO Bernardo Paasche tells LatinFinance. He notes that the lender will need more funds, as it expects 100% loan portfolio growth during 2011. The 3.5-year facility pays a spread over TIIE which Paasche declines to disclose. Deutsche Bank took a MXP620m senior portion of the deal, while US-Based Alsis Funds took a MXP110m subordinated piece which pays a higher spread over TIIE. There are no specific plans for a public ABS yet, Paasche says. As of September, the Sofom had a total loan portfolio of over MXP900m, with over 40,000 clients.
Category: Regions
Nexxus Close to CCD Retap
Mexican private equity manager Nexxus Capital has set Wednesday as the date to close books on its retap of the certificados de capital de desarrollo (CCD) sold in March. What would be the first reopening of a CCD in the short history of the asset class is set to raise up to MXP1.4bn through the sale of up to 14.29m certificates at MXP98.00. The reopening price reflects an MXP2.00 per CCD payout Nexus made in September as a part of the return structure, says a Nexxus official. It is not a discount to the MXP100.00 original offering price in March. The 2020 deal in March raised MXP1.46bn for what is essentially Nexxus’ fourth private equity fund, investing in a wide variety of assets in Mexico over a 5-year period. Bank of America Merrill Lynch and Santander are managing the transaction.
S&P Chops Barbados Rating
S&P has cut the ratings of Barbados to BBB minus from BBB. The ratings agency believes the sovereign’s debt burden will increase in the next 2 years because of delays in the government’s fiscal-consolidation efforts and a slower-than-expected economic recovery. S&P says that although the refinancing risk remains low, the high and increasing level of debt is straining fiscal accounts and, if not addressed, could lead to a loss of investor confidence. The outlook is stable.
Credicorp Buys Alico’s Pacifico Stakes
Peruvian financial conglomerate Credicorp says it is acquiring a 20.1% stake in Pacifico Seguros and a 38.0% stake in Pacifico Vida from US-based American Life Insurance Co. (Alico) for $170m in cash. Alico is owned by AIG through a SPV, though the parent is in the process of selling the company to MetLife. The acquisition of the Pacifico shares brings Credicorp’s stakes in Pacifico Seguros to 96% and to 100% in Pacifico Vida. “These are acquisitions that we have been planning ever since AIG ran into trouble,” says a Credicorp spokeswoman. AIG, which had to be bailed out by the US government in 2008, is expected to complete the sale of Alico in the next few months, according to company information. Credicorp’s spokeswoman says the company will finance the acquisition with cash on hand. “We had set aside funds so we could be able to finance the deal once we were able to execute it,” she says, adding that the deal was negotiated privately.
Trafigura Sells Volcan Preferred Shares
Global commodities trader Trafigura has sold about a 25% stake of the preferred shares of Peruvian zinc and silver miner Volcan Compania Minera for around $400m equivalent, say bankers in Peru not involved in the deal. The shares were sold in several blocks via the local exchange and the buyers are local institutional investors, says one of the bankers. He adds that Trafigura acquired the stake in 2006 and sold it because Volcan is not part of its core business. Another banker says that BBVA Continental and Scotia handled the transactions.
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.
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.
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.
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.
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.