Televisa is preparing a bond of up to MXP10bn, what would be its first in the domestic market. The 10-year fixed-rate deal could come as soon as Thursday of next week, if conditions allow, according to bankers on the trade. HSBC and Santander are managing the transaction, rated AAA on a national scale.
Category: Regions
Posted inDaily Brief
Penoles Mines at Home for USD
Mexican miner Penoles has sold $530m in dollar-denominated bonds in Mexico’s domestic market. A $400m 10-year tranche priced at fixed rate of 5.15%, and a $130m 2015 tranche priced at Libor plus 178bp, according to bankers on the deal, who decline to comment on the demand. BBVA, HSBC and Santander managed the sale, rated Aa1 on a national scale, which will fund investments and refinance debt. Penoles, owned by Grupo Bal, is said to have issued in USD as it is looking for liabilities that match cashflows. The company had pulled an issue of up to MXP7bn in June because it failed to find an acceptable FX derivative structure to swap the issue back into dollars. There was expected to be great interest for a deal in either currency, as Penoles is considered an infrequent issuer. Bankers say it is the second USD-denominated domestic deal, following an HSBC subordinated bond last year.
Posted inDaily Brief
Mexican Pharma Launches Chilean Offer
Mexican pharmacy chain and distributor Grupo Casa Saba has formally launched an offer to acquire up to 100% of Chile’s Farmacias Ahumada (Fasa) drugstore chain for $637m equivalent, or CLP1,642 per share, after Mexico’s antitrust regulator approved the deal. The offer is contingent on Saba obtaining at least 51% of Fasa shares from the open market. Casa Saba says in a regulatory filing that HSBC and Banorte will provide financing for the deal, but does not disclose terms. Buyer and seller had originally agreed in May to a deal, which includes assumption of about $162m in debt, and which the buyer says makes it the leading LatAm drugstore. Fasa’s Goldman Sachs and Servicios Financieros Altis are advising Fasa. Estructura Partners/Cicerone advised Saba, which claimed $2.2bn in sales last year. Fasa is controlled by founder Jose Codner and had $1.65bn in sales in 2009.
Posted inDaily Brief
Ecuador Signs $1bn China Loan
Ecuador’s government has signed a $1bn loan with the China Development Bank, its finance ministry says, emphasizing that there is no oil collateral involved. A $200m tranche is earmarked for special projects in the petroleum sector, with the remainder for general use. The 4-year loan pays a fixed interest rate of 6% and features a 6-month grace period. In addition to the $200m for oil projects, proceeds will be used to finance Ecuador’s investment program for infrastructure and other 2010-11 budgetary outlays. “This loan is not repaid with crude, nor has any guarantee or collateral of oil,” the finance ministry says. Ties between the 2 nations are already among LatAm’s coziest. China’s eximbank is lending $1.7bn to a hydroelectric plant which will start construction soon under China’s Sinohydro. Last year, Petroecuador, and PetroChina signed a 2-year crude-oil supply contract kicked off with a $1 billion advance payment.
Posted inDaily Brief
BCP Preps 2020 Bonds
Banco de Credito del Peru (BCP) is readying a benchmark-size 2020 bond. Peru’s largest bank, rated BBB/BBB minus, will meet investors in the US and UK Monday through Wednesday. Bank of America Merrill Lynch and Deutsche Bank are managing the sale, expected by the market to raise at least $500m. BCP’s last visit to the international DCM was a $250m 9.75% of 2069 hybrid, sold in November 2009, now trading around 7.0% yield-to-worst, according to Credit Suisse data. It is hoped that the deal would be the first of many before the end of the year offering investors diversification away from Brazil and Mexico.
Posted inMagazine
Peru Fishery Consolidation: Minnows Beware
Peru’s fisheries are again poised to consolidate. Though the pre-crisis M&A pace may not be matched, opportunity for fundraising is expected.
Posted inMagazine
MEXICO CCDs: Expanding Opportunity
A wave of new CCDs is making its way to the Mexican market. Size and the diversity of underlying assets are slowly increasing.
Posted inMagazine
Brazil-Peru: The Gateway to Asia
Brazil is building infrastructure throughout neighboring Peru with a view to opening up shipping routes to Asia. The substantial investment also boosts Peru’s long-term development.
Posted inMagazine
Temasek Talks Mexico Potential
As relations between Asia and LatAm strengthen, Temasek sees itself well positioned to ride Mexico’s recovery. The sovereign wealth fund is teaming up with entrepreneurs.
Posted inMagazine
INTERVIEW: CFE Ups Its Game
As Mexico’s economy starts to revive, CFE is confident in its ability to meet growing electricity needs. Technology, transparency and investor relations will be key.