The board of Colombia’s largest financial institution, Bancolombia, has approved a new share offering plan. The bank is proposing to issue 60 million preferred shares with non-voting rights to raise an estimated $440 million. The proposal will be put to shareholders at a meeting in March. The money raised may go towards the acquisition of Salvadorian financial group Banagrícola, which Bancolombia agreed to buy last December for up to $900 million.
Category: Regions
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Davivienda Looks To Shareholders To Raise $115 Million
Colombian bank Davivienda is seeking to raise around $115 million by issuing new shares to existing shareholders, according to local media reports. The bank will offer 3.24 million shares at 80.227 pesos per share. The funds raised will be go towards financing its acquisition of Bancafe which it bought from the government at auction for $927 million last October.
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Axtel Upsizes Bond Issue
Mexico’s Axtel has raised $275 million through a 10-year bond issue that was upsized from $250 million on demand of $750 million. It was talked at 7.75% area and priced at 7.625% at par, or 275bp over Treasuries. The Ba3/BB- deal through Credit Suisse as sole lead was sold 67% to US investors and 33% to Europe. Proceeds will pay down a bridge to fund the acquisition of Avantel. Final maturity is February 1 2017.
Axtel is also raising $205 million in the bank market to fund its acquisition of Avantel. The deal through Citigroup is priced at 187.5bp over Libor, on a leverage grid. It is a five-year with 36-months’ grace, said bankers considering participating. Comerica, HSBC, Scotia and Standard Bank have signed on as MLAs and the commitment deadline is February 8.
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ICA Ups Stake In PMA
Mexican constructor Empresas ICA says it has signed an agreement to buy an additional 39% stake in water treatment company Proactiva Medio Ambiente México (PMA México). Following the acquisition, ICA will own 49% of PMA Mexico’s capital and Proactiva will own 51%. ICA did not disclose the amount to be paid for the stake.
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Vitro Earns Ratings Upgrade
Following the success of its upsized $1 billion debt offering last week, Mexican glassmaker Vitro has earned a ratings upgrade. Fitch Ratings has upgraded Vitro’s local and foreign currency Issuer Default Ratings (IDR) to B from CCC and has assigned a B+ rating to the company’s $1 billion proposed notes offering. Fitch noted that the upgrades “reflect the improvement in the company’s capital structure and debt profile, which significantly lowers refinancing risk and eliminates structural subordination following the takeout of secured operating subsidiary debt”. Last week, the company placed one of the largest high-yield corporate issues in emerging markets and saw orders totaling $5.25 billion. The issue, which was expanded from an original $750 million, means the company will not need to seek additionally financing from bank loans. The money raised will help refinance existing debt and improve its capital structure.
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Morales Olivera To Head Up YPFB
Manuel Morales Olivera, an adviser to Bolivia’s president Evo Morales, has been appointed the new head of state-run oil company Yacimientos Petroliferos Fiscales de Bolivia (YPFB). Morales Olivera (no relation to President Morales) replaces Juan Carlos Ortiz who resigned last week citing differences with the government regarding the direction of the oil company. Ortiz was the second president of YPFB to resign since the new government took over.
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Axtel Sets Guide Of 7.75%
Mexican fixed-line phone operator Axtel, which is set to price a $250 million bond issue later today, Tuesday, has set a yield guidance of 7.75% area, reports Dow Jones. Axtel is planning to sell the 10-year senior unsecured notes to take out the $311 million bridge loan, due May 2008, used to acquire local telco group Avantel. Credit Suisse is acting as sole bookrunner. The notes, which mature January 2017, have been rated BB minus by Standard & Poor’s. Axtel bought Avantel last December for $500 million, paying $310 million in cash and assuming $190 million worth of net debt.
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YPFB President Resigns
Juan Carlos Ortiz, the president of Bolivia’s state-owned energy company Yacimientos Petroliferos Fiscales de Bolivia (YPFB) has resigned, citing differences with the administration over the vision of the company’s direction. Ortiz was appointed last August replacing his boss Jorge Alvarado who was forced to resign after mounting pressure resulting from fraud allegations.
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Colombia Raises Rate To 7.75%
Colombia’s Central Bank raised the benchmark interest rate a further 25bp Friday, from 7.50% to 7.75%, to stave off inflationary pressures, according to analysts. Last month, against market expectations, the Bank raised the benchmark interest rate to 7.50% from 7.25%, saying it was moving to slow growth in the country. The Central Bank is targeting inflation of between 3.5% and 4.5% this year.
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Banxico Holds Steady At 7%
In line with the market’s expectations, Mexico’s central bank, Banco de México (Banxico), kept the benchmark interest rate unchanged at 7%, Friday, holding it for the ninth month in a row. A recent price hike in tortillas, a Mexican food staple, and sugar is causing some analysts to revise earlier predictions of a rate cut by the Bank early this year. Some are even talking of a price rise. However, Banxico said in a statement it doesn’t believe these price rises will cross over into other prices and wages and maintained a target of inflation this year of between 3.5% and 4%.