Peru’s Pesquera Exalmar has priced a PES341m ($120m) IPO, the country’s first since 2007, boosting hopes for other Andean issuers. The fishmeal and oil producer sold 57.5m primary and 14.2m secondary shares at PES4.75, according to a banker on the sale. The 71.7m unit total falls short of a 112m maximum, but ECM bankers and investors are optimistic more Peru issuance should follow, particularly in the consolidating fishery sector, from which Exalmar is the third to list. There had been no price range given for the sale, conducted through an auction rather than through a bookbuilding process, with the market roughly expecting a $100m-$200m size. “Many others in the sector are evaluating the possibility of listing,” says Jean Pierre Fournier, equity portfolio manager at Integra AFP, which has $800m in assets under management. “There is much more efficiency in the sector, following the revised quota system, which has also allowed for better margins and for consolidation led by the bigger companies,” he tells LatinFinance, referring to a 2009 change that restructured catch limits. Demand for the float came from Peru, Colombia, Chile, the US and Europe, bankers on the deal say. This follows a roadshow to the same locations. Proceeds are marked for repaying debt from recent acquisitions, buying boats, and expanding the footprint on Peru’s southern coast. Santander, Citi and Interbank managed the sale, the first Peru IPO since Intergroup floated in 2007, according to Dealogic.
Category: Peru
BCP Closes Larger 3-Year
Banco de Credito del Peru has closed a $350m 3-year syndicated loan priced at 175bp over Libor, which it upsized from an original $300m. Standard Chartered and Citi were global coordinators for the bank, with commitments coming from 19 banks, including Deutsche, Commerzbank and BAML, who were MLAs. Orders reached almost $400m, according to a spokesman for BCP. Participation came from Latin America, Europe, the US and some Asian banks, adds the spokesman. The loan is for general corporate purposes, in particular to fund loan growth.
Southern Copper Strikes Back
Southern Copper faces stiff competition in Peru from new and expanding projects. But it is digging deep to keep on top as the country’s leading red metal producer.
Best Investment Bank – Chile
Chile-based investment bank Celfín Capital has seized the boom in 2010 as an opportunity to push it into the big leagues.
Best Bank – Peru
In the April-June period, Banco de Crédito Del Peru (BCP) achieved some of its best quarterly results to date, supported by a strong reactivation of the Peruvian economy.
Xstrata Commits to Peru
Peru may end up calling 2010 the year of Xstrata. It unveiled plans to invest $7 billion in deals including one the president calls “the contract of the century.”
Dow Jones Launches Peru Indices
Dow Jones Indexes has launched the LATixx Peru Government PES Bond and the LATixx Global Peru Government USD Bond Indexes. The market-cap weighted indexes are designed to measure the performance of the Peruvian government’s local and global issues in PES and USD. Back-tested historical data is available from January 1 2009, with the base date of December 31 2008 and an initial value set to 1,000, Dow Jones says. As of September 30, the LATixx Peru Government PES Bond Index had a year-to-date performance of 3.49%. The LATixx Global Peru Government USD Bond Index rose 16.62% over the same period.
Peru Fish Anchors IPO For a Week
Peru’s Pesquera Exalmar expects to IPO on November 4, instead of Thursday as initially planned. The fishmeal and oil producer is waiting a week to accommodate international buyers needing to complete regulatory formalities, according to a source close to the transaction. Exalmar plans to sell 57.5m primary units and 54.4m secondary to both domestic and international investors. Exalmar does not indicate a value or price range, as the level will be set through an auction. It says in a prospectus that the sale should raise more than $100m. Proceeds are marked for repaying debt from recent acquisitions, buying boats, and expanding the footprint in Peru’s southern coast. Santander, Citi and Interbank are managing the sale, set to be the first Peru IPO since Interbank holdco Intergroup sold shares in 2007.
Petrominerales Acquires 25% Stake in Peru Block
Oil company Petrominerales has acquired an additional 25% stake in Block 126 in east central Peru from Veraz Petroleum, increasing its stake to 80%, according to a spokesman. Petrominerales will pay Veraz $6.8m in cash and an $8.0m bonus when certain production levels are achieved. In addition, it will grant Veraz a 20% working interest in Blocks 161 and 141. Both Petrominerales and Veraz are Canada-based companies with operations in LatAm.
Credicorp Buys Alico’s Pacifico Stakes
Peruvian financial conglomerate Credicorp says it is acquiring a 20.1% stake in Pacifico Seguros and a 38.0% stake in Pacifico Vida from US-based American Life Insurance Co. (Alico) for $170m in cash. Alico is owned by AIG through a SPV, though the parent is in the process of selling the company to MetLife. The acquisition of the Pacifico shares brings Credicorp’s stakes in Pacifico Seguros to 96% and to 100% in Pacifico Vida. “These are acquisitions that we have been planning ever since AIG ran into trouble,” says a Credicorp spokeswoman. AIG, which had to be bailed out by the US government in 2008, is expected to complete the sale of Alico in the next few months, according to company information. Credicorp’s spokeswoman says the company will finance the acquisition with cash on hand. “We had set aside funds so we could be able to finance the deal once we were able to execute it,” she says, adding that the deal was negotiated privately.