Category: Regions

Mexican retailer Gigante has launched an offer to buy back its $260m 8.75% of 2016 senior bonds. The offer managed by Citi will expire December 27. It pays a $20 per $1,000 premium for holders participating before December 12. No new issue has been planned to fund the purchase, according to a banker on the deal.

Mexican retailer and financial services provider Grupo Elektra has named Guillermo Colin as CFO. He joins from Banco Azteca, where he was also CFO.

Mexican bank ratings will not see downward pressure in the months ahead, barring a dramatic worsening of the global liquidity crisis, says Fitch. “Overall, Fitch expects that the major Mexican banks will continue recording sound earnings, as the domestic operating environment will likely remain benign,” says Fitch director Alejandro Garcia. He cites strengths like the low level of private sector loans to GDP, stable interest rates and strong internal demand. The ROA for the six largest banks continued strong, at 2.6% for the year to September. Fitch also believes that both retail and total loans will likely continue to post double-digit growth. However, a slowdown in loan growth in the sector cannot be ruled out, as tougher conditions to access long-term funding and/or capital in the global markets, coupled with the upward trend in delinquent retail loans, could eventually result in stricter credit policies toward the banks.

MM Cinemas is planning to offer up to MXP1bn in 2012 bonds in the Mexican market. According to bankers on the deal, the offering is expected to consist at least partially of FRNs. Proceeds will go towards repayment of debt and working capital. Santander is sole manager on the mxA- transaction. No timetable has been set.

Volkswagen Leasing is expected to price Friday up to MXP4bn in 2012 domestic bonds, according to bankers on the deal. The mxAAA transaction is expected to feature fixed and floating-rate notes. Proceeds will support the lending portfolio of the financing arm of Volkswagen’s Mexico unit. HSBC and Santander are joint bookrunners.

Gabriela Alvarez-Avila has joined law firm Curtis, Mallet-Prevost, Colt & Mosle as counsel based in Mexico City. She was formerly senior counsel to the World Bank’s International Centre for Settlement of Investment Disputes (ICSID). During 7 years at ICSID, she administered arbitration cases including claims based on bilateral investment treaties, NAFTA, CAFTA, national investment laws and international contracts.

Mexican food producer Sigma Alimentos is roadshowing a local bond issue worth up to MXP2bn. The subsidiary of Grupo Alfa plans to issue MXP1.5bn-MXP2bn mid-December, treasurer Reynaldo Garza tells LatinFinance. It will comprise a to-be-determined combination of 2014 fixed and 2012 floating-rate notes. “The Mexican market has been a bit tighter in the last few months, but there is still room in November and early December to obtain attractive financing,” he says. Proceeds will refinance short-term debt. Bank of America is managing the offer.

A series of Mexican corporates and a municipality are lining up local bond issues that may bring over MXP20bn to market by year end. Cemex is planning to bring a two-tranched offering of certificados bursatiles next month via HSBC that could total MXP6bn. A fixed rate tranche and a floating rate one, each worth up to MXP3bn, are expected and both have received an mx.AA from S&P. Another MXP6bn offer is heard coming from beverage producer Femsa in the first week of December, say bankers on the deal. Santander and HSBC are running the offering, featuring a MXP3.5bn 2013 TIIE-based floating tranche and a MXP2.5bn 2017 UDI-linked piece. A MXP 4bn issue from Volkswagen Leasing via Santander and HSBC is also heard to be in the pipeline. Lastly, Mexico City’s government has registered to sell as much as MXP4.5bn in floating- and fixed-rate bonds via Deutsche Bank. It may sell the bonds in multiple offerings through the end of the year, with maturities of up to 30 years.