Mexican infrastructure developer is scheduled to price its share offering of 150m units on Thursday, reopening the long-dormant Mexican equity market. The company is raising the targeted MXP3.47bn ($262m) in cash to help finance the acquisition of new concessions. The 150m figure includes a 15% greenshoe option by underwriters Merrill Lynch and Santander. BBVA Bancomer is a co-lead on the local tranche. Some 91m ordinary shares are planned for the international offer and 39m locally.
Category: Regions
Posted inDaily Brief
Peru Issues From Position of Strength
Peru has retapped its 2025 bonds for $1bn, following an announcement that it will make an early payment on Paris club debt to France and Italy. The BBB minus/Ba1 rated sovereign reopened the 7.350% notes at 103.827 to yield 6.950%, or UST plus 343.6bp. Guidance had been given at 7% area Monday morning, and the issuer built a $4.7bn book. The 2025 – originally offered in 2005 – was seen trading last week to yield around 6.7%, according to investors and bankers away from the transaction, indicating a reopening concession of about 25bp-35bp. A banker on the deal meanwhile spots it at 20bp. Peru opted to reopen the 2025s, rather than the 2019s sold earlier this year, as it was an issue originally used to pay Paris Club debt, say bankers on the deal, also highlighting the advantage of replacing euro debt due 2010-2015 with longer dollar debt. “Reaching longer may have been challenging but it was a measured extension that worked out well,” says a DCM banker away from the deal, noting the 16-year tenor – the longest LatAm deal so far this year – is good for the market. “Peru is issuing from a position of strength. It has done a good job preparing for a difficult period,” says a LatAm-dedicated investor who participated, calling the pickup to the existing bonds “decent, if not great.” JPMorgan and UBS managed the transaction. Peru sold $750m of the 2025s in July 2005 through JPMorgan and UBS, and added $500m in December through Citi. Peru’s government says it plans to pay France and Italy about $850m equivalent in mostly euro-denominated debt with the proceeds. Peru’s total Paris Club debt at the end of the first quarter was $3.89bn. Peru sold $1bn in new 2019s in March, marking its first cross-border sale in almost 2 years.
Posted inDaily Brief
World Bank Breaks LatAm Loan Record
The World Bank (WB) says it committed a record $17.1bn to LatAm and Caribbean countries in the financial year ended June 30, up 70% versus the previous fiscal year and a record-breaking amount. “Requests for assistance from the World Bank rose sharply this year, and we expect this to continue well into 2010, as the pace of recovery is far from certain,” says Bank president Robert Zoellick. The total includes a tripling to $14bn in commitments from the IBRD and IDA, mostly to Brazil, Mexico, Argentina, Peru and Colombia. The IFC doubled in FY09 the number of investments in the region, supporting 122 projects in 21 countries, with a contribution of $3.3bn, of which $775m was in syndicated loans. The IFC also doubled its trade finance guarantees to the region to $825m, while MIGA provided $33.9m in guarantees.
Posted inDaily Brief
Famsa to Raise Funds from Shareholders
Mexico’s Grupo Famsa plans to ask investors to approve a capital increase of MXP1.2bn at a July 17 shareholders meeting. The controlling shareholder of the retail and banking group has indicated his intention to contribute at least MXP600m in fresh capital during the 15-day subscription period. The starting date and pricing details will be unveiled after the shareholder vote. Proceeds would be used for working capital and to reduce debt. Famsa shares closed Thursday at MXP12.90.
Posted inDaily Brief
Mexican Lender Readies ABS
Mexican lender Consupago is set to sell Tuesday up to MXP1bn in bonds backed by a pool of consumer loans. The 2014 issue rated AAA on a national scale will pay a spread over the TIIE benchmark. The pool is composed of more than 62,000 loans given to government workers to make consumer purchases. Deutsche Bank is managing the sale.
Posted inDaily Brief
Emgesa Sells COP400m Bonds
Colombian generator Emgesa has sold COP400m ($191m) in bonds on the domestic market. The unit of Spain’s Endesa priced COP92.2bn in 2104 fixed-rate bonds at 9.27%, as well as COP218.2bn in 2018 bonds at the IPC inflation rate plus 5.90% and COP89.6bn in 2021 bonds at IPC plus 6.10%. The book reached almost COP950bn, according to brokers managing it. Citi, Correval and Corredores Asociados were leads on the transaction, rated AAA on a national scale. Other Colombian issuers in the pipeline include Grupo Financiero de Infraestructura and Banco Davivienda.
Posted inDaily Brief
Telmex Buys Sister Company’s Subsidiary
Subsidiaries of Mexico’s Telmex have acquired the 75% stake of Eidon Software held by Promotora Ideal, a subsidiary of Grupo Carso, for MXP364.5m, the sellers say in a filing with Mexico’s securities commission. The Telmex subsidiaries making the divestment are Servicios Administrativos Tecmarketing and Controladora de Servicios de Telecomunicaciones. Both Telmex and Grupo Carso are controlled by Carlos Slim Helu. Equity research firm Actinver says this is “a consolidation and rationalization effort on the part of the Carso Group.” Eidon provides software to Telmex and America Movil’s Mexican operations.
Posted inDaily Brief
China Development Bank Plans Rio Office
The China Development Bank plans to open a LatAm rep office in Rio de Janeiro, according to a statement from the state governor. The bank aims to open its office by the middle of 2010 and has expressed interest in investing in ports, steel mills, energy and projects related to the 2014 World Cup soccer tournament in Brazil, as well as Rio’s bid for the 2016 Olympics. The Chinese government-backed lender has this year agreed to lend up to $800m to BNDES and $10bn to Petrobras.
Posted inDaily Brief
CL Financial Asset Sale on Ice
The sale of a 55% stake in Republic Bank and a 56% in Methanol Holdings in Trinidad & Tobago (T&T) are on hold until the global economy strengthens and stabilizes, says Carl Hiralal, inspector of financial institutions at T&T’s central bank, which took over CL Financial insurance unit Clico in early 2009 as the company ran into liquidity problems. The government took over CL Financial’s local assets in June. “There has been no decision to sell yet. These are good assets and this is not the best time to sell them,” he tells LatinFinance. Bankers in Trinidad told LatinFinance in April that Canada’s CIBC, which holds a 91% stake in the country’s First Caribbean Bank, is the most likely buyer of the 55% stake in Republic. It could cost $1.3bn to buy the chunk, according to a banker who asks not to be identified. A senior Republic executive had said his bank is not interested in acquiring the shares.
Posted inDaily Brief
ABC Brasil Hits the “Non-Deal” Road
Banco ABC Brasil has launched a “non-deal” roadshow that will visit the eastern US and Europe, according to investors. One-on-one meetings began in Switzerland Wednesday, and the tour for the first time issuer will hit Lisbon by the end of the week, before visiting London and finishing up in the US Wednesday. HSBC, Itau and Santander are managing the process. The mid-size corporate credit specialist controlled by the Arab Banking Corporation has been rumored to be looking for a dollar bond, after planning one last year prior to the crisis. A mandate was rumored, but there was no size or tenor. Smaller Brazilian banks tend to issue $50m-$150m at 1-3 years.