Timber producer Agropecuaria Santa Genoveva has filed to sell up to MXP2.2bn in 20-year bonds, in one or two offerings. The notes are backed by zero-coupon bonds purchased from the federal government by a special purpose vehicle. Proceeds from the AAA (mex)-rated notes fund a timber project. BBVA will manage the offering.
Category: Regions
Posted inDaily Brief
Mexican Timber Firm Plots Bond Sale
Timber producer Agropecuaria Santa Genoveva has filed to sell up to MXP2.2bn in 20-year bonds, in one or two offerings. The notes are backed by zero-coupon bonds purchased from the federal government by a special purpose vehicle. Proceeds from the AAA (mex)-rated notes fund a timber project. BBVA will manage the offering.
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Banco Industrial Gets Honduras’ Banco del Pais
Guatemala’s Banco Industrial has agreed to acquire 90% of Grupo Financiero Banpais for an undisclosed sum. Senior officials had told said Industrial would pay about $150m for the Honduran bank when they were working on the transaction. “This is the best way to enter that important market,” Luis Prado, international banking director tells LatinFinance, adding that it is the first step in a regional expansion plan that also includes organically building operations in El Salvador and southern Mexico. The transaction is being financed with shareholder equity and a loan from Standard Bank.
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S&P Raises Xignux to BB+ Plus
S&P has upped its corporate credit rating on Xignux, the Mexican diversified holding company, to BB+ (stable) from BB and raised its 2009 notes to BB from BB-. “The rating action reflects an improvement in the issuer’s financial profile supported by better-than-expected financial performance during 2007,” says S&P analyst Jose Coballasi. “In addition, the rating action considers that the prospects for the power transformers business will remain favorable and will continue to drive strong results in 2008 and 2009.” The rating on the 2009s reflects the structural subordination of the issue relative to the company’s priority liabilities. Xignux is constrained by the cyclical nature of most of its end markets as well as commodity price volatility and single-digit operating margins. “The ratings also consider Xignux’s significant market share positions, product diversity, and vertical integration,” says S&P. The firm is committed to maintaining a total debt-to-EBITDA ratio of less than 2.5x through the cycle.
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Four Groups Bid for Panama Locks Contract
The Panama Canal Authority has selected four consortia to bid on the contract to build the new locks for the canal expansion. The C.A.N.A.L. consortium is led by Spain’s Acciona and ACS and Mexico’s ICA, and the Consorcio Atlantico-Pacífico de Panama is led by France’s Bouygues Travaux Publics. Bechtel and Japan’s Taisei and Mitsubishi Corporations lead a third group and the Grupo Unidos por el Canal consortium, led by Spain’s Sacyr Vallehermoso and Italy’s Impregilo, is the fourth. The groups will have eight months from the date of issuance of the RFP, expected soon, to present proposals and budgets, with the contract scheduled to be awarded in December 2008. The contract represents the largest project under the $5.25bn expansion, which will double the canal’s capacity by building a new traffic lane. Mizuho is financial advisor to the Panama Canal Authority.
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DF Sells Bonds, Mulls Offering More
The Mexico City government is considering the sale this week of the remainder of bonds authorized under a MXP4.5bn shelf, following a MXP3.0bn sale last week. The deal included a MXP575m 2027 tranche at 8.65% and a MXP2.43bn 2017 tranche at TIIE minus 5bp. Proceeds go towards 20 different public works projects, mostly relating to the DF metro and water systems. JPMorgan and Deutsche Bank managed the sale.
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Petrotemex Wraps up $150m Relationship Loan
Mexico’s Petrotemex has closed a $150m dual currency loan. The transaction includes practically all of holding company Grupo Alfa’s relationship banks. Led by Santander and Standard Chartered, it includes MLA participation from Calyon, JPMorgan, Banamex, BBVA and HSBC. Barclays and BofA also had participant-level tickets. The facility pays on a net consolidated debt to Ebitda grid, which, at above 3x leverage, pays 60bp over TIIE and 70bp over Libor. In the 2.5x-3.0x band, where it was out of the box, it pays 45bp and 55bp respectively. At 2.0x-2.5x, it pays 30bp and 45bp. And at less than 2.0x, it pays 20bp over TIIE and 40bp over Libor.
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Gazprom Reported Plotting Bolivia Venture
Russia’s Gazprom is in talks with the Bolivian government to link up with YPFB, the national oil and gas company, in an exploration deal heard at $2bn, according to the FT. Russian officials reportedly acknowledged the talks, but they declined to pin a figure on the investment, saying it was too early to discuss. Bolivia has developed an interesting relationship with foreign investors and even nationalized the tin assets of Glencore last year. Still, despite a less than desirable renegotiation of ownership terms on hydrocarbon assets last year, a handful of oil and gas companies remain in the country, including Petrobras and BP, providing expertise needed to operate the country’s gas exploration efforts.
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Colombia Seen Holding at 9.50%
Colombia’s central bank is expected to keep its benchmark interest rate unchanged at 9.50% today. Notes from the central bank’s previous meeting seemed to suggest the current level has put the economy on a stable path, according to Credit Suisse. “The monetary policy tightening that started in April 2006 appears to be having the expected dampening effect on domestic demand growth.”
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La Yesca Syndication Heads to Retail
The lead banks on ICA’s $1bn 4.5-year loan to fund construction of the 750MW La Yesca hydroelectric project in Mexico are targeting 6-10 banks in a retail syndication expected to wrap up in January. On offer are $50m lead arranger, $30m arranger and $20m manager spots, with DnB Nor already in. Pricing is heard to be in the range of 50bp-60bp, say bankers away from the deal. WestLB is bookrunner on the deal, with NordLB, BBVA, Citi, Santander, Scotia and Natixis as MLAs.