Colombia’s Banco Davivienda plans to sell COP500bn ($290m) in bonds. The bank controlled by Sociedades Bolivar wants to use proceeds to finance its lending activities. Meanwhile, Colombian state-run transmission grid operator Interconexion Electrica plans to sell an additional COP350bn ($202m) in bonds following approval from its board. The size of its bond program is now COP1.2trn. It did not give an indication of when it plans to issue the debt.
Category: Regions
Posted inDaily Brief
ISAGEN Mulls Dam Financing Options
Colombian state own electricity generator ISAGEN is considering several financing options for a proposed $1.3bn dam project in the Sogamoso river in the northeastern department of Santander, says a spokesman at the company says. The dam is expected to produce 800MW and meet a rise in local electricity demand over the next decade, the spokesman adds.
Posted inDaily Brief
Panama to Exchange $478m in Bonds
Panama plans to issue $477.7m in 2029 bonds to holders of its 2011 and 2012 notes, following an exchange that expired Wednesday. It accepted $262.3m worth of the 9.625% 2011s at a repurchase price of 115.432 (T+170bp). The sovereign also agreed to repurchase $286.9m of the 9.375% 2012 notes at 119.624 (T+94bp). The 2029 bonds were reopened at 135.205, to give a yield of 168bp over the UST reference yield of 4.631%. The transaction serves to get investors into more liquid points on the curve, and follows Monday’s $235m reopening of the 7.25% of 2015. Citi and Deutsche Bank managed both transactions.
Posted inDaily Brief
Interbank Pulls Sweetened Syndication
Peru’s Interbank has canceled the syndication of a loan after it became clear that interest in the $200m 3-year step up was not sufficient to get a full book, say bankers away from the transaction. The deal via Standard Chartered was originally launched as a 3-year working capital facility paying 85bp-95bp over Libor. It was then restructured and flexed so that a $100m 3-year trade facility offered 85bp-95bp, and a $100m 3-year working capital portion paid 100bp-120bp over Libor. That still did not do the trick, and the borrower was forced to exit. Bankers close to the process say the Interbank plans to come back when conditions are more amenable. Interbank is also lining up a $150m 5-year MT100 though Credit Suisse.
Posted inDaily Brief
Bancomext Sells Chile Concessions
Mexican export development bank Bancomext has sold two Chilean toll road concessions to Spain’s Global Via Infraestructuras, for $553m. The concessions, Sociedad Concesionaria Autopista del Aconcagua and Sociedad Concesionaria Autopista del Itata, were put up for sale in January and have concessions expiring in 2020. BNP Paribas and Nafin advised on the sale. Bancomext acquired the roads in 1998 from Mexican construction company Grupo Tribasa. In the same announcement, Bancomext said it completed the restructuring of $400m in debt Cuba owed to Mexico and is in the final stages of selling the World Trade Center in Mexico City.
Posted inDaily Brief
Pemex in Truck Capex Investment
Mexican company Camiones Andrade has won the bid for a sale of 356 trucks to transport gasoline and diesel to Pemex, the Mexican oil giant says. Pemex will invest MXP425m in the new units, the company says. The purchase is part of a strategic initiative aimed at increasing efficiency and safety in its operations, Pemex says. The trucks will be use for distribution purposes within Mexico, the company adds.
Posted inDaily Brief
LatAm Equity Sees Robust Gains in May
LatAm equity funds gained 8.25% in May, scoring the highest returns in the month out of all the equity fund categories tracked by Lipper. EM funds rose 1.95%, while China region funds lost 2.15%. Dedicated short bias funds experienced the biggest drop of the month, sinking 3.71%. Year to date, LatAm funds have gained 15.95%, while China region funds have lost 15.36%. EM fund have lost 2.85% so far in 2008.
Posted inDaily Brief
Investors Buy Into Panama Swap
Panama will today close its books on a debt swap expected to be worth around $500m, say people involved in the process. Final pricing, yields and allocations are to be delivered at 200pm New York time today. Panama is offering to exchange existing 9.625% 2011 and 9.375% 2012 bonds for reopened 9.375% 2029s, in a bid to move investors to a more liquid point on its curve. The 2011 notes have been repurchased at a spread of 107bp over equivalent UST, while the 2012s are being exchanged at a spread of 94bp. The 2011s bid Monday at around 112.75 (UST+110bp) and the 2012s at 116.8 (UST+162bp), according to a trader away from the deal. Up to $500m in 2029 bonds will be reopened at a spread of 168bp. Given strong investor interest in both the Monday reopening of $235m in 2015s, for which orders worth more than six times the offer came in, as well as in the bond exchange that began yesterday, executives close to the issuer say they expect to meet their goals to in debt reduction and maturity extension. Citi and Deutsche are leading.
Posted inDaily Brief
Banobras Shops New Product to Private Sector
Last month’s State of Mexico refinance with the help of a Banobras first loss guarantee opens the door for other borrowers to leverage the state development bank’s rating. “This deal is very important because it opens up a new form of operating for Banobras,” Banobras president Alonso Garcia Tames tells LatinFinance. Garcia says Banobras is starting to assess which indebted states could benefit from guarantees, and he does not rule out applications beyond states and municipalities. “This a very efficient product that will help us support states in collaboration with the private sector,” says Garcia. “For project finance, we think this instrument could be very valuable,” he adds. This would apply to local and foreign firms working on projects in Mexico. “It’s a way for the development bank – instead of competing with the private sector – to collaborate with it,” says Garcia. The official adds that there are no new deals coming in the short term. Banobras is also working on a project to channel funds to Mexican municipalities, particularly less developed ones. Last year’s pilot in Michoacan paved the way for new projects underway in Chiapas and upcoming in Puebla, Oaxaca, Durango and Veracruz.
Posted inDaily Brief
Bancomext Sells Chilean Road Concession
Spain’s Global Via has won a bid for 100% of the shares of SCADA and SCADI, two Chilean road concessionaries owned by Mexico’s export bank Bancomext, for $553m. BNP Paribas and Nafin advised on the auction. OHL, Abertis, Autopistas del Pacifico and CCR also participated in the auction process, the bank says. Global Via is a joint venture of Spain’s road developer FCC and savings bank Caja Madrid, focused on infrastructure, railroads, road concessions and port operations.