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.
Category: Regions
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Mexico’s Posadas Readies Peso Bonds
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.
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Invex Preps Acapulco Tunnel Revenue Securitization
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.
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Peru Seen Holding Rates Despite Inflation
Peru’s central bank is expected to keep the overnight rate at 5.25% after its monthly board meeting Thursday, despite the high probability that February’s inflation could be higher than forecast, according to Citi. The shop sees food likely to affect Peru’s inflation more than in other countries, given that it accounts for 47.5% of the CPI basket, versus a 26% regional average. This has the potential to encourage generalized inflationary pressures and will likely reduce the probability of reaching the inflation target this year. Citi believes that the likelihood of a rate hike in the next meeting is small, but does not rule out additional measures in the coming months.
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Mexico to Swap MXP10bn Bonds
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.
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Chavez Saber Rattling Knocks Bonds
Venezuela’s increasingly heated diplomatic row with Colombia has dented secondary bond markets, where both sovereigns underperformed Monday. The Vene 2027 closed off two points at around 97 down from 99 on Friday, according to traders. Colombia 2037s meanwhile dropped 1.5pts to 105, while PDVSA 2017s surprised by outperforming the Vene sovereign, closing up around 3pts at 67. Ecuador, which also weighed in against Colombia in the spat, was seen trading lower. The Vene local market meanwhile saw significant flow. “A lot of people were looking for cash,” Abramo Di Luca, director at Italbursatil Casa de Bolsa in Caracas tells LatinFinance. “There was a lot of nervousness”. The government nonetheless continued today with the sale of notes in US dollars from a pool of debt including the Argentina and Ecuador sovereign. The bonds are highly sought after by Venezuelans desperate for hard currency. “I really think that the market will adjust itself again,” Di Luca says. “But is important to see the attitude and the explanation of the government in the coming days.” The storm is expected to eventually blow over, though there is risk of further escalation short term.
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CFE Readies $2bn Loan
Mexico’s Comision Federal de Electricidad (CFE) is preparing to roll out a $2bn syndicated loan next week, say bankers close to the process. The BBB+ rated state-owned utility has already secured five banks to lead the process. BBVA, RBS, BNP and Santander are heard as bookrunners, with Citi also participating in a senior role. Pricing on the 3-year facility is still forthcoming, say bankers. The margin on the deal may become a market reference for Mexican corporates, given the size and timing, say bankers away from the process. Earlier this year, bankers were sounding out the market for pricing on CFE. Wherever it comes, the price will reflect market conditions, say bankers on the deal. That suggests something wide to the 25bp over Libor the borrower is heard to have sought last year. Most of the proceeds are being used to refinance bank debt, some of which matures at the end of the year. In November, CFE priced MXP1.2bn in local 2017 bonds at 30bp over Cetes.
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Andean Crisis Not Affecting Ratings, Says Fitch
Diplomatic tensions between Colombia, Venezuela, and Ecuador are unlikely to put downward pressure on Colombia’s sovereign ratings in the near term, according to Fitch. Colombia’s ratings remain at BB+ (stable), says the agency. “Trade links between Colombia and Venezuela are strong, which mitigates the risk of military action,” says Shelly Shetty, senior director at Fitch. “Colombia is helping to meet some of the food shortages in Venezuela, while the latter is an important destination for Colombian manufacturing exports.” Approximately 15% of Colombia’s exports and about one-third of its manufacturing exports are destined for Venezuela.
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Pemex Unveils Finance Plan for 2008
Mexican oil giant Pemex plans to raise $5bn in 2008, according to finance director Esteban Levin. Some $2bn will come from issuance in the local and international capital markets, with the balance from $1bn in bank loans and $2bn in ECA finance. Pemex is also considering liability management this year, says Levin. “We do have something in consideration that involves a better placement of the yield curve. It will depend on existing market conditions,” he says. Levin adds that amortizations for this year are close to $4bn. He was speaking in a conference call held Friday to present financial results for 4Q 2007.
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Pemex Plans Investment in Output, Exploration
Pemex spending is expected to amount to MXP218bn in 2008, up 28% from last year, the company says. Production and exploration will consume 84% of the budget, while 11% will be spent on expanding crude refining capacities. The quasi-sovereign is planning to raise output to 3.1m bpd in the next five years, from 1.5m bpd in 2007.