Colombia’s TGI Thursday wrapped up a roadshow for $900m in 2017 bonds, to be denominated in both pesos and dollars and guidance should emerge next week. Over a week and a half ago, TGI said it may price this week. But bankers on the deal say roadshow meetings and conference calls were being held through the early afternoon yesterday. Given volatile market conditions, the issuer is waiting to see how the next few sessions play out. If the market worsens, the transaction, which bankers say has garnered a lot of interest in Europe and the East and West Coasts, could even wait until September. Proceeds are being used to refinance debt. ABN AMRO is leading with BBVA, Mizuho and Calyon as joint leads.
Category: Regions
Posted inDaily Brief
Goldman Group Bags Mexico Toll Roads
LatinFinance hears that Goldman Sachs Infrastructure Partners and ICA, Mexico’s largest construction firm, have won a $4.1bn concession to run four toll roads in Mexico, after being named a preferred bidder by the Mexican government. Although, the Mexican government officially announces the winner August 6, people in the market say the Goldman consortium won with the highest of six offers presented. It bid MXP44bn for the first package of toll roads to be awarded by Fideicomiso de Apoyo al Rescate de Autopistas Concesionadas (FARAC), a trust fund owned by the Mexican Government. The 30-year concession is to build, operate, exploit, conserve, and maintain four tollroads, which have a total length of 548km. The Goldman group trumped a bid from Australia’s Macquarie Infrastructure Group (MIG) and Carlos Slim’s Impulsora del Desarollo de America Latina (IDEAL) structured as a 60/40 partnership between IDEAL and MIG. Proposals from other bidders reported in the Mexican press include Brisa of Portugal, CCR of Brazil and Grupo Hermes, and three separate bids from consortiums led by Spanish firms OHL, FCC and Abertis. Goldman Sachs acted as financial advisor to the Goldman/ICA consortium.
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ING Group to Buy Santander Pension Funds
ING Group is to buy the pension funds of Banco Santander Central Hispano (Banespa) in Argentina , Chile , Mexico and Colombia for a price ranging between $1.2bn and $1.4bn, according to Dow Jones, which cites Argentine daily El Cronista.
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Lamosa Launches $675m Loan in USD, Pesos
Mexico’s Lamosa, which makes interior homebuilding products, has launched a $675m loan with a 4.7 year average life, according to bankers off the deal. It is denominated in pesos and dollars and to finance an acquisition. The A tranche, with a 3-year maturity revolver, includes $40m in dollars and $35m equivalent in pesos. The B tranche, with a 6-year maturity, includes a $350m dollar piece and a $250m equivalent peso portion. The margin is on a total debt to EBITDA grid that pays the following over Libor: 200bp at 3.0x-3.5x, 155bp at 2.5x-3.0x, 110bp at 2.0x-2.5x, 90bp at 1.5-2.0x and 75bp at anything under 1.5x. Scotiabank is leading with BBVA as a joint bookrunner.
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Correa Replaces Patiño
Ecuador’s President, Rafael Correa, has replaced his controversial finance minister, Ricardo Patiño, moving him to a newly created ministry of coastal affairs. His post will be filled by Fausto Ortiz, currently number two at the finance ministry. The markets have generally welcomed the move as Ortiz is seen as more flexible and market friendly, although unlikely to change policy in any significant way. Goldman Sachs analyst Alberto Ramos commented: “even if the core of the current heterodox policy objectives should remain intact the process to achieve them could be substantially smoother and less disruptive than would have been the case under the leadership of Minister Patiño”. Patiño, who has been outspoken regarding the issue of a possible debt restructuring, was censured by Congress earlier this month in connection with allegations of market manipulation and was increasingly under attack from the opposition.
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IFC Takes Stake in Banco Amigo
IFC, the private sector arm of the World Bank Group, has signed an agreement with Banco Amigo, a newly established microfinance bank in Monterrey, Mexico. IFC will investment MXN77m ($7.1m), representing a stake of up to 18%, to help finance the bank’s expansion of products and services to low-income entrepreneurs and women-owned small businesses.
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Exito Raises $390m via Global Share Offering
Colombian retailer, Almacenes Exito, has raised $390m via a global offering of shares, the company announced Tuesday. The company sold 50m new shares to a select group of investors, including French retailer Casino Guichard Perrachon, which controls Exito, and Colombian pension funds, among others. JPMorgan Chase & Co was the underwriter.
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GraceKennedy Buys in T&T
GraceKennedy, the Jamaica-based group, through its subsidiary, First Global Holdings, has acquired a 90% holding in ONE1 Financial, based in Trinidad & Tobago. The newly acquired company will become part of the First Global group, which currently includes First Global Bank and First Global Financial Services. ONE1 Financial specializes in structured finance, securities trading, capital raising and financial advisory services. In Jamaica, First Global Group provides a full range of banking and investment services including equity trading, pension fund management, asset and portfolio management, and corporate finance and advisory services. “Trinidad & Tobago is the fastest growing economy in the English speaking Caribbean therefore it is very important that GraceKennedy continues to participate in its future development,” says Don Wehby ceo of GraceKennedy Investments.
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Jamaica’s NCB Places DPRs
National Commercial Bank of Jamaica raised $50m in securities backed by diversified payments rights Friday by placing the lot into the hands of investors in a privately arranged transaction. The notes, part of a program started last year with a $100m issuance, is backed by electronic transactions ranging from FDI flows to remittances to export payments. Pricing information was not revealed. Credit Suisse led the BBB minus (Fitch) deal.
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India’s Jindal Buys into Bolivia
Bolivia got a shot in the arm over the weekend by signing a $2.1bn 40-year mining deal with India’s Jindal Power & Steel, according to press reports. The agreement for the El Mutun iron ore deposit apparently comes after more than a year of negotiations and is thought to be one of the biggest single investments in Bolivia’s history. Grupo Financiero Bisa is issuing local guarantees and insurance policies as part of the deal. “This a very important sign to the world, because it shows that it is possible to invest in Bolivia for long terms,” says a banker at Bisa.