BNP Paribas Personal Finance is preparing to sell up to MXP800m in 2013 bonds in Mexico’s local market, according to regulatory filings. The French bank’s Mexican unit has not given a timetable for the placement of the floating-rate notes. Scotia and BBVA Bancomer are managing the sale, rated AAA on a national scale. In September, the bank sold MXP1.3bn in 2012 notes at TIIE plus 130bp.
Category: Regions
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Scotia Buys BNP Wealth Units
Scotiabank is buying the wealth management activities of BNP Paribas in Panama, Grand Cayman, and The Bahamas. The transaction is subject to regulatory approval and is expected to be completed in Q3. Terms of the transaction were not disclosed, and while strategic, the agreement is not financially material to Scotiabank Group, says BNP. “This transaction will make Scotiabank one of the largest wealth management providers in Panama,” it adds. The transaction enables BNP to cease wealth management activities in the 3 jurisdictions, in line with a September 2009 announcement. “This agreement is a great fit with Scotiabank’s international wealth management growth strategy in the Caribbean and Latin American regions,” says Dan Wright, senior vice-president and head of Scotiabank International Wealth Management.
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Parque Arauco Buying Peru Mall
Parque Arauco subsidiary Inmuebles Comerciales del Peru, is acquiring from Peruvian construction company Grana y Montero an 82.5% stake in Fashion Center, the company that owns the Fashion Mall Larcomar shopping center in Lima, for $36m in cash. The buyer says that the mall generated $5.7m in 2009 Ebitda. Parque Arauco, a Chilean mall owner and developer, plans to take over 100% of Fashion Center from other minority shareholders. Closing is expected in May.
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Comerci Extends Domestic Exchange
Tiendas Comercial Mexicana has again extended the period for its local debt exchange offer, to April 14 from March 30. Parent Controladora Comercial Mexicana seeks to extend its maturity profile as it recovers from crisis-related derivative problems. The retailer is offering holders up to MXP1.5bn in new 2016 notes in exchange for 5 series of outstanding bonds with nearer maturities. The new bonds are rated BB on a national scale and should be issued following close of the offer. Comerci has not indicated the acceptance rate to this point. Ixe is managing the transaction, originally launched January 5.
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Inmet Gets Financing for Panama Project
Canadian miner Inmet says it will sell CAD500m in subscription receipts to a unit of Singapore’s Temasek via a private placement to fund development of its Cobre Panama project and for general corporate purposes. As part of the deal, Temasek subsidiary Ellington, based in Canada, has agreed to acquire 9.3m subscription receipts at CAD54 each. The receipts will be exchangeable into Inmet common shares on a 1-for-1 basis, which means Temasek will gain a 14.2% share in Inmet after the exchange. Ellington and members of the Temasek group also agreed, subject to any takeover bid permitted by the terms of the investor rights agreement and to any private placement agreed with Inmet, not to hold more than 19.9% of Inmet’s common shares. Closing is expected by the end of April.
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Medoro Buys Into Colombia Gold
Canada’s Medoro Resources is buying Colombia assets from Frontino Gold Mines for $200m. Medoro will assume all of Frontino’s pension and other liabilities. Medoro has also entered into an agreement in principle to sell a 50% stake in the assets to a company controlled by Serafino Iacono and associates. “Purchase of these high grade gold assets, including an operating underground mine at Frontino, will establish Medoro as a leading gold producer in Colombia, with exceptional upside potential,” says John Hick, president and CEO of Medoro. “With new capital, improved technology and highly skilled mining personnel we believe Medoro will be in a position to liberate the potential at Marmato and Frontino, the 2 principal gold producing areas in Colombia,” he adds. Frontino has been in liquidation since September 2004. The assets are located near the city of Segovia, approximately 220km north of Medellin. Medoro expects the deal to close in 4 months. Medoro’s financial advisor is GMP Securities. Medoro’s primary focus is Colombia. It also has a 100% interest in the Lo Increible 4A and 4B Concessions in Venezuela.
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ABC Brasil Raises Tier 2
Banco ABC Brasil has sold $300m in Tier 2 bonds in its debut dollar market issue. The Ba1 rated mid-sized corporate credit specialist controlled by the Arab Banking Corporation priced the 2020 at 98.311 with a 7.875% coupon to yield 8.125%, or UST plus 428.8bp, in line with 8.125% area guidance. The book reached more than $600m, according to bankers on the deal, with more institutional participation than had been anticipated. The deal went 32% to European accounts, 31% to North America, 22% to LatAm, and 15% to Asia, a banker on the deal says. A very small percentage sold to the Middle East. Buyers include 32% fund managers 23% private banks, and 24% banks. ABC had met investors last year and again in February, before visiting the US, Asia, Europe and the Middle East immediately preceding the deal. The bank had been heard aiming for $200m-$250m. The bond traded up about 0.5 points Wednesday afternoon, according to investors. HSBC, Itau, and Santander were joint bookrunners on the 144a/Reg S trade.
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Panama Fund Nets $120m Bond Profit
Panama’s government-backed Fondo Fiduciario para el Desarrollo (FFD) has made $24m profit by selling $346m in 6.25% of 2036 government bonds, Panama’s finance ministry says. This takes total profit from the sale of Panama sovereign bonds it held to $120m. The fund – created in the 1990s with proceeds from various privatizations and has government debt among its assets – sold $250m to the Caja Seguro Social pension fund and $95.9m to Morgan Stanley at 106.25. Morgan Stanley plans to periodically offer the bonds to the public. The ministry says the fund has sold all of its 2027, 2034 and 2036 sovereign bond positions. Panama, which received its first investment-grade rating last week from Fitch, attempted to sell all of its holdings in the three series ($759.7m) at once in December. It pulled the deal after announcement, opting instead to unload the paper in tranches, including $441m of the 2027s in a February transaction.
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Carlyle Crew Eyes Mexico CCD
EMX Capital, the private equity firm responsible for the Carlyle Group’s Mexican activities, has registered for a CCD transaction in Mexico’s domestic market. The deal will raise funds for a private equity fund able to make a broad range of investments in Mexico, according to regulatory documents. It will be similar to CCDs completed recently by Atlas Discovery capital and Nexxus. Over a 5-year period, the fund expects to make 8-10 investments at MXP150m-MXP500m each. The 2020 transaction features a remuneration structure similar to the previous Mexican CCD transactions, based on a return on the investment, plus a 10% preferred return. If similar in size to other private equity CCDs, it would raise MXP1bn-MXP2bn. Deutsche Bank is managing the deal. EMX, led by Joaquin Avila, spun off from Carlyle last year, and continues to manage Carlyle’s Carlyle Mexico fund. More than 20 CCDs are in the pipeline, with those linked to private equity funds appearing thus far to move more quickly to the front of the queue than those linked to infrastructure or other business projects. However, as Mexico’s pension funds get used to the asset class, all CCDs are encountering wait times of several months between filing and closing. Nexxus’ 2020 MXP1.46bn transaction was the most recent to close.
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Itau Readies Tier 2 Bond
Itau is preparing to market a new 10-year benchmark-sized Tier 2 bond, according to bankers on the deal. A 3-team roadshow visiting the US, Europe and Asia begins Monday and wraps up Wednesday. Itau, Goldman Sachs and Morgan Stanley are managing the transaction. Itau is rated Baa2/BBB and could raise $500m-$1bn in this market. Brazilian banks are taking advantage of positive issuing conditions. An expected $750m 2015 from Santander Brasil being talked at US Treasuries plus 185bp area could come as soon as today, as could a 2020 Tier 2 from ABC Brasil, expected to raise $200m-$500m at 8.25% area.