Barclays has upped the ante on its bid to take over ABN AMRO, following investment in the UK bank of EUR13.4bn from the China Development Bank. Besides raising the bid for ABN to EUR67.5bn, it also boosts the share price of the UK bank, sweetening the overall deal for the Dutch target. It may not be enough to head off an offer by a consortium including Santander, which threatens to shake up Brazilian banking. But it keeps the ball in play and revives the possibility of a bidding war for ABN’s Brazil assets. Itaú has already indicated that it may be interested, while Bradesco is rumored to want the operations too. Citi and HSBC are also seen as potential buyers.
Category: Regions
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Grupo TMM Securitizes Vessels Receivables
Mexican logistics and transportation company Grupo TMM, has securitized the future revenues of its vessels with the issuance of 20-year trust certificates (certificados bursatiles). This first tranche, part of a larger MXN9bn program, is worth MXN3bn ($280m) and has a rate of 225bp over the interbank TIIE rate.
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Coke FEMSA Says Jugos Buy To Proceed
Coca-Cola FEMSA and The Coca-Cola Company said Wednesday that they would be proceeding with the $470m purchase of Mexico’s Jugos del Valle following a successful appeal to the Comisión Federal de Competencia (CFC). “We expect to receive the final notification in the following weeks,” Coca-Cola FEMSA says in a statement to the Bolsa. The deal was for $380m in cash and $90m debt and advised by Rothschild, says Dealogic.
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Metrofinanciera Brings Construction Loan ABS
Mexican Sofol Metrofinanciera is planning a MXP2.15bn cross-border construction loan securitization through Credit Suisse, with Banco Invex as trustee. The final maturity is 2014 and the notes have a subordination level equal to 12.5% provided by the class B notes and an initial overcollateralization of 5.0% of the collateral balance, says Fitch. It adds that the average excess spread of the portfolio’s credit rights must be at least 200bp, and sees strength in Metrofinanciera as an originator and servicer. Moody’s rates the notes Baa1 and Fitch gives it a preliminary BBB.
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Mexico Unveils $38bn Infrastructure Spending Plans
Mexico’s government launched a $38bn infrastructure spending program Wednesday, which will see improvements in air, road, rail and sea facilities, according to the president, Felipe Calderón. The National Infrastructure Program 2007-2012, unveiled by the government, will make use of private-public partnerships (PPPs) and envisages the construction of five new seaports and three new airports.
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Fenosa’s EPSA Buys Colombia Hydro Plant
Colombian power company Empresa de Energía del Pacifico (EPSA) – controlled by Spanish power utility Unión Fenosa – has bought state-owned hydro-power plant Hidroelectrica del Prado for $54m (COP105bn) at auction. The plant is located in Tolima province in western Colombia.
Last month, Fenosa announced a €600m ($870m) investment in “green” energy in Mexico.
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Moody’s Rates Interacciones Sub-Debt
Moody’s said Wednesday it will assign a Ba2 long-term global local currency subordinated debt rating to Banco Interacciones’ MXP700m issue of non-convertible Tier-2 subordinated notes due in 2017. At the same time, Moody’s is expected to assign an A2.mx Mexican national scale rating to the notes. Banco Interacciones is headquartered in Mexico City providing finance to states and municipalities as well as infrastructure projects.
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Equity Investors Favor Asia Over LatAm
Some 35% of respondents to Merrill Lynch’s survey said they preferred Asian equity markets for the next 12 months, while none said they preferred LatAm. In the June survey, 29% tipped LatAm versus 21% for Asia. However, of the BRIC stock markets, Brazil is still way ahead, with 45% saying they prefer it over the next 12 months, compared with poor scores for Russia (-10%), India (-35%) and China (+5%). A LatAm correction looks likely, though the longer term outlook is still constructive, equity strategists say. Merrill polled 186 fund managers managing a total of $618bn for the global survey, taken from July 6-12. A total of 180 managers participated in the regional surveys, managing $447bn. The survey was done with the help of market research company Taylor Nelson Sofres.
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Philip Morris Raises Mexican Tobacco Stake
Philip Morris is taking another 30% stake worth $1.1bn in the tobacco business of Mexico’s Grupo Carso. This takes the Swiss-based cigarette firm’s stake to 80%. Carso says it will keep a 20% stake and expects the deal to go through this year, subject to regulatory approval. “Today’s announcement demonstrates our ongoing commitment to Mexico and our confidence in the future of our business in Latin America,” says Andre Calantzopoulos, president and CEO of Philip Morris. “Our relationship with Grupo Carso and its founder, Carlos Slim Helú, has proven to be extremely successful and we look forward to further growth of our business in Mexico,” adds Miroslaw Zielinski, the firm’s president for Latin America and Canada. Philip Morris estimates total cigarette industry volume in Mexico at approximately 48bn units in 2006, with a 47.8% share for its Marlboro brand and a total market share in the country of 63.5% last year. Carlos Slim will continue to advise to Philip Morris Mexico.
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Panama To Launch Canal Lock Tenders
Panama is set to launch the tenders for the design and construction of the canal locks in November and will likely award the contracts by the following year. The locks are a crucial element of the $5.2bn Canal expansion project that is due to be completed by 2014. Last October, Panamanians overwhelmingly approved the plan to expand the Panama Canal and allow today’s super freighters to use the waterway. The government plans to finance the expansion by increasing tolls and issuing debt linked to canal income.