Category: Regions

In a tough local market, blue chip Mexican issuer America Movil has priced MXP2.5bn in 2018 bonds at 8.11%. The maximum amount was reached at an auction yesterday and the coupon compares to the America Movil 8.46% of 2036 and 9% of 2016. Proceeds from the AAA locally-rated deal will go towards general corporate purposes. The offer is the fourth under a MXP10bn shelf filed last year. Inbursa, Banamex and Santander managed the sale.

Mexican coke bottler Embotelladora Arca has agreed to purchase Grupo Guerrero, owner of Coca Cola bottling rights in northwestern Argentina. The amount of the transaction was not disclosed but was above $10m, according to Carlos Beltran del Rio, manager of investor relations at Arca. “We are looking at expansion opportunities outside Mexico,” he says, adding that there are few Coca Cola bottlers for sale. The deal should close in the next 6-9 months, after which Arca expects to offer new products to the Argentine market. The franchise includes the provinces of Catamarca, Jujuy, La Rioja, Salta, Santiago del Estero and Tucuman. It sold approximately 80m cases in 2007.

Hallgarten has issued a strong buy recommendation on Canadian miner Fortuna Silver Miner, which operates the Caylloma field in Peru and San Jose in Mexico. “On face value alone, the company is an interesting option as a vehicle to ride the secular bull run in both base and precious metals, as it has strong expansion plans [and] has cash to fund the operations with little or no need to go to the currently tight credit market for funds,” the shop says. It adds that the company is investor-friendly for its share structure and policies. Hallgarten also highlights the potential of its Peruvian operation.

Fitch Ratings has lowered its debt ratings on bonds from Mexico’s GMAC Hipotecaria to BBB+ from A+, it said. The downgrade, affecting MXP2.15bn in three issues, follows the recent downgrade of parent Rescap to BB minus from BB+.

Scotiabank Inverlat has registered to sell MXP2.5bn in 2028 RBMS. The AAA locally rated fixed-rate notes are expected to price March 13 at the earliest. The issue is the first from a MXP10bn shelf. The pool of 2,750 mortgages originated by Scotia comes from throughout Mexico, with just over one-third from DF. Scotia’s own capital markets group is managing the sale.

Hotel and tourism operator Grupo Posadas is preparing an issue of MXP1bn-MXP1.5bn in bonds. A sale date still has not been set for the deal, heard to include both 2018 fixed and 2013 floating-rate tranches. Proceeds are for general corporate purposes. Credit Suisse is leading, with Ixe, BBVA, JPMorgan and ING as co-leads.

Mexico’s Invex bank is preparing to place MXP1.25bn in 2033 bonds backed by revenues generated by the TUCA tunnel concessionaire in Acapulco. The definitive date has not been set, but a sale of the AA+ rated notes linked to the 182-day TIIE could occur as soon as March 14. TUCA has operated the Tunel de Acapulco under a 40-year concession since opening in 1996. The last TUCA securitization was an MXP800m issue in 2005. Value Casa de Bolsa is managing the sale.

Mexico’s central bank is planning to swap up to MXP10bn in 7 and 8-year bonds for new 9-year notes. In an auction set to take place Wednesday, it will buy back the 8.00% of 2015 and 7.25% of 2016 bonos, denominated in both pesos and UDIs. Holders will receive 7.75% notes maturing in December 2017. The transaction follows Mexico’s first UDI bond exchange February 20, in which it bought back about $184m in 2025s and issued 2035s.