Colombian export bank Bancoldex has sold COP500bn ($247m) in floating-rate bonds in the domestic market, reaching the maximum allowable increase in size from COP300bn. It placed COP212bn in 18-month bonds paying interest at the DTF benchmark rate plus 1.16%, COP161bn in 2-year notes at DTF plus 1.29%, and COP126bn in 36-month bonds at DTF plus 1.70%. Proceeds from the AAA rated sale will strengthen the banks lending capabilities. Bancoldex mananged and structured the transaction itself. It had previously visited the market in February, selling COP575bn in 2011 and 2012 DTF-linked floaters. Compatriots in the domestic pipeline include Avianca, Finadater, Isagen and Grupo Nacional de Chocolates – all expected next week – as well as Promigas and Titularizadora Colombiana which may come later this month.
Category: Regions
Panama Reported Seeking IMF Line
Local press reports cite Panama’s finance minister Alberto Vallarino as saying the sovereign is in talks with the IMF to receive a precautionary loan of more than $1bn. However, an IMF spokesman says it has not received any request from the Panamanian authorities for a financial arrangement.
S&P Affirms Peru Rating
S&P has affirmed Peru’s BBB minus ratings and kept the outlook on the sovereign stable. “The ratings on Peru are supported by the government’s commitment to economic stability and a positive investment climate that will underpin solid growth through 2012, despite the sharp slowdown in 2009,” says S&P credit analyst Richard Francis. He says he expects Peru’s external indicators to remain robust, despite the fact that the current account balance swung to a deficit of 3.3% of GDP in 2008 and likely will remain in a deficit of 2%-3% of GDP through 2011. External debt net of liquid assets is expected to remain at less than 10% of current account receipts, compared with the BBB median ratio of 34%. “We expect gross external financing needs to current account receipts plus usable reserves to remain at less than 80%, well below the BBB median ratio of about 115%,” he adds.
Avianca Revs COP Tap
Colombia’s Avianca is preparing to sell COP500bn in bonds on the local market August 20, according to brokers. The issuer may place bonds with maturities of 5, 7, and 10 years, at a spread to the IPC inflation index. Interbolsa is managing the transaction. In what is looking to be a busy month in Colombian DCM, Grupo Nacional de Chocoloates could also bring an up to COP500bn local bond as soon as August 20 through Bancolombia, though the date remains to be confirmed. Others lining up include Bancoldex, with a COP500bn 2011 and 2012 offer set for today, and Findeter, with a COP200bn 2011-2014 sale set for August 19.
Mexican Petrochem Poised to Price
Petrotemex has announced yield guidance of 9.50%-9.75% for its new BB/BB+ 2014 bond, expected to price this morning. The petrochemicals producer controlled by Mexican conglomerate Grupo Alfa is looking to follow compatriots Javer and Alestra, as well as Brazil’s Cosan in tapping growing investor demand for Latin high-yield credits. The order book was heard topping the $300m mark Tuesday afternoon, according to investors. Bank of America-Merrill Lynch and JPMorgan are managing the transaction, whose proceeds will refinance old debt. Baring a surprise, the transaction should be the last from the Latin cross-border bond market until September.
CCP Crafts Management, Development Role
Cyrela Commercial Properties (CCP) has crafted a new kind of role for itself in the $400m JV pool it has set up alongside Singapore’s GIC and Canada’s CPPIB, say people eyeing the deal. While the vehicle has a performance fee similar to what some real estate and private equity funds have, the agreement is understood to reward CCP, the general partner (GP) of the fund, much more based on its work as a developer rather than as a manager of a portfolio, says a person with knowledge of the transaction. The joint venture, which has a 10-year agreement, will target total returns north of 10%, says Bruno Laskowsky, CEO, declining to specify the target. The length of each investment can be determined by the three participants in the fund, adds the CEO. The deal is also being viewed as a win-win for all participants, say executives both on the deal and at competing shops away from it. CCP obtains a large pool of cash with which it can conduct its business without having to raise on a project by project basis. It also allows the Brazilian entity the ability to diversify its pipeline, giving it a more stable profile, says CCP in a statement. For limited partners GIC and CPPIB, the fund-JV structure gives them direct access to new deals in Brazil at a lower entry cost, since the performance fee is understood to be relatively small, and the ability to rely on CCP to provide high quality development services, something that generally presents foreign investors with a number of challenges when done on a one-off basis, or with local firms they are less familiar with.
CFE Places Local Bonds
Mexico’s CFE has sold MXP3.42bn in 2019 bonds in the domestic market. The issuer priced MXP1.47bn in MXP-denominated bonds at a fixed-rate of 8.85%, and MXP1.95bn-equivalent in UDI-denominated notes at 4.60%. The state-owned utility plans to use proceeds from the issuance to recaptialize public works investments. Banamex and Bancomer managed the sale, rated AAA on a national scale. CFE sold MXP1.1bn worth of 2012 floaters in June, under a joint program with Bancomext, and helped reopen the Mexican bond market this year with a MXP3.8bn in 2019 offer in April.
Microfinancier Readies MXP Retap
Mexican microfinance institution Banco Compartamos is preparing a retap of the 2012 floating-rate bonds it sold in July, with pricing coming as early as this Wednesday. Details are still being finalized, according to an official at the bank. Compartamos is set to offer up to MXP1bn of the bonds, of which it previously placed MXP500m at TIIE plus 200bp through Credit Suisse. The notes are rated AA minus. Proceeds will provide general lending capital. Banamex is managing the new deal, which is heard driven by reverse inquiry.
Petrotrin Piques Investor Interest
Petrotrin has given 10%-area yield guidance for its benchmark-size 2019 bond that is set to price today. The Trinidad and Tobago state-owned oil and gas producer concluded a US and European roadshow Monday, and had by Monday afternoon amassed an order book reaching $3bn, according to investors. The final size is expected be between $500m-$800m. A final yield in the high-9%s would be in line with initial expectations. Despite an investment grade BBB/Baa3 rating, Petrotrin’s outstanding 6% 2022s have been trading to yield in the low 9%s. While the credit can count on state support, S&P notes its stand-alone profile would be in the BB category. The issuer is raising funds to support construction of facilities related to its clean energy program. Credit Suisse and JPMorgan are managing the transaction. In the other cross-border deal expected this week, Mexico’s Petrotemex was heard whispering mid-9%s as it wrapped up its roadshow in London Monday. The BB/BB+ petrochemicals producer controlled by conglomerate Grupo Alfa is pitching a 2014 bond. The order book was heard reaching $200m Monday afternoon, according to investors. Bank of America-Merrill Lynch and JPMorgan are managing the transaction, whose proceeds will refinance old debt.
Colombian Lender Readies Local Tap
Colombian state-owned development finance agency Findeter is planning a sale of up to COP400bn ($196m) in credit deposit notes, expected August 19. It is set to sell COP50bn in 2011 notes at a fixed rate, COP75bn 2012s at a spread to the DTF, and COP75bn in 2014s at a spread to IPC. However, each tranche in the AAA rated issue can be increased by up to 100%. Findeter is structuring and managing the operation itself. In March, it sold COP416bn in credit deposit notes at maturities ranging from 2011 to 2014. This week, compatriot Bancoldex is set to sell Wednesday up to COP500bn in 2 and 3-year bonds priced over the DTF.