Intra Mexicana plans to raise up to MXP3bn ($228m) though a domestic securitization debut, scheduled for May 3. The 2019 floating-rate bonds are backed by receivables of money transfer fees done under the Dinero Express brand. The proceeds will be used to fund the acquisition of payday lender Advance America by Grupo Elektra and for general corporate purposes. Actinver, Ixe and Value are managing the transaction, rated AA minus on a national scale. Intra Mexicana, an electronic money transfer company operating under the brand name Dinero Express, started operations in 1996 and began to expand in Latin America in 2003.
Category: Structured Finance
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Unifin Preps MXP ABS
Mexico’s Unifin Financiera is preparing to issue up to MXP1bn ($76m) in domestic asset-backed bonds next week, with a preliminary pricing date of May 2. Unifin had originally been considering a sale this week of the 2017 floating-rate bonds. The bonds are backed by credit receivables for automobile and equipment leasing contracts. Ixe is leading the transaction, rated AAA on a national scale. Unifin last raised MXP800m through a 2016 ABS in November, pricing at the TIIE+165bp.
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Global Bank Aims for $200m Covered Bond
Panama’s Global Bank is targeting a $200m size for a covered bond, according to S&P, which assigns a BBB minus rating. In what would be the first covered bond in LatAm, the bank is looking at a 5 to 7-year tenor with a legal maturity of 30 years. The rating is a notch higher than Global’s BB+ rating, reflecting a first recourse to Global Bank and subsidiaries, and second recourse to a portfolio of mortgages transferred to a guarantee trust in an event of default, S&P says. In addition, the monetary value of the mortgages is higher than the $200m issuance size, representing initial overcollateralization of 18.5% of issuance amount. “The covered bonds are backed by a cover pool of residential mortgages denominated in USD and located in Panama with covered bondholders having priority claim on these assets,” the agency adds. Deutsche Bank is managing, with HSBC as co-manager. Global is scheduled to meet fixed-income investors today in London before heading out to New York and Boston and finishing up in Los Angeles April 30. A 144A/RegS covered bond LatAm debut should follow, market conditions permitting.
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Global Bank Preps Covered Bond
Panama’s Global Bank plans to meet investors ahead of a covered bond sale, what bankers say would be first such issuance out of Latin America. After a visit to Lima Monday, the bank will see accounts today in London, followed by New York and Boston before finishing in Los Angeles April 30. A 144A/RegS covered bond would follow, market conditions permitting, though specific details were not available. Officials at Global Bank decline to comment. Deutsche Bank and HSBC are managing the process. Secured by a cover pool of mortgage loans or other debt, covered bonds give investors preferential claim in the event of a default, allowing issuers to get tighter pricing versus senior unsecured debt.
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BCP Lands Hybrid
Banco de Credito del Peru (BCP) generated about $1.4bn in orders for a new $350m Tier 2 2027 NC10 bond. The bank priced the Baa3/BBB minus fixed-to-floating rate subordinated notes at par with a 6.125% coupon to yield at the tight end of 6.25%-area guidance. After year 10, the interest rate switches to Libor plus an additional spread of at least 300bp. “It came at a good price,” says a banker away from the deal. In the end, the issuer managed to leave investors with a 12.5bp concession versus levels on BCP 2026s, at 5.90% yield to call, with 10bp added to adjust for the curve extension, according to bankers on the deal. “The deal came in too tight for us,” says a West Coast EM portfolio manager who saw a 20bp-25bp new issue concession. The paper was trading up at 0.25 points in the grey market, according to another investor. Demand was heard coming from a good mix of accounts from LatAm, the US and Europe, with some Asian participation. The fixed-to-floating rate structure was preferred as it allows for the bonds to be called without affecting BCP’s capital ratios, according to a banker on the deal. Proceeds are marked for general corporate purposes. Bank of America Merrill Lynch and Citi managed the 144A/RegS transaction. BCP in October 2011 engaged in a liability management transaction in which it mopped up most of its $120m outstanding in 6.95% 2021 subordinated bonds in exchange for 6.875% 2026 fixed-to-floating rate bonds. The exchange followed a September 2011 pricing of a $350m 15NC10 subordinated Tier 2 bond to yield 6.875%.
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BdB Gets Tier 1 Nod on Hybrid Debt
Banco do Brasil has received central bank approval for $725m in Basel III compliant hybrid perpetual debt to count as Tier 1 capital, it says. The Brazilian bank reopened its outstanding 9.25% Tier 1 NC11 perpetual bonds for $750m in March, pricing at 108.50 to yield 8.488%. The BB rated non-cumulative junior subordinated perp reopening was managed by Banco do Brasil, BNP Paribas, Bradesco, Citi, HSBC and Standard Chartered.
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Colombian Targets REIT Sequel
Improving issuing conditions have Colombia’s Terranum Inversion planning to quicken the pace of share sales from its Patrimonio Estrategias Inmobiliarias (PEI) domestic real estate income trust, and follow up a recent $88m-equivalent sale with another this year, Terranum’s CEO says. “About $75m-$100m should come on line by the end of the year. Clearly there is a lot of appetite, but not a lot of product,” Jose Ignacio Robledo tells LatinFinance, noting that PEI remains the only REIT in Colombia. Normally, PEI would only issue once a year. The trust started in 2007 now stands at $450m-equivalent following a COP155.13bn ($88m) sale, its fourth tranche, last month. All but just over $10m-equivalent was sold to existing investors exercising their rights, he says, with about $900m-equivalent in demand for the small portion that remained for the open market. Participants included institutional investors and family offices, Corredores Asociados managed the sale. Despite the demand, there have yet to be other REIT imitators in Colombia, at least with the US market-inspired REIT structure that Terranum uses. Part of the challenge is finding single-ownership assets, as opposed to the multiple-owner format traditionally favored in Colombia, Robledo says. The former is better suited for a sale-leaseback deal and inclusion in the fund, and gettingg large corporations to do this has not been easy. The trend is positive however, improving from 5 years ago when companies needed to be convinced that owning all of their real estate assets made little financial sense. Retailer Exito is an example of a large corporate landowner that has seen the value of sale leasebacks, he says. The government implementing regulation defining a standard for REITs in Colombia would also help stimulate the asset class. With average returns around 15%, Terranum’s fund invests in corporate and retail centers in Colombia’s major cities, but is looking to branch out to more of the mid-sized cities. “Clea
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Unifin to Sell MXP ABS
Mexico’s Unifin Financiera is preparing to issue up to MXP1bn ($76m) in domestic asset-backed bonds on April 24. The 5-year floating rate bonds will pay a spread over TIIE. The bonds are backed by credit receivables for automobile and equipment leasing contracts. Ixe is leading the transaction, rated AAA on a national scale. Unifin last raised MXP800m in 2016 ABS in November, pricing at TIIE+165bp.
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VW Tightens FIDC
Brazil’s Banco Volkswagen was able to bring in the yield on a BRL930m ($508m) vehicle loan securitization done under the FIDC format. The BRL875m 6-year senior portion pays the DI+1.25%, coming in under a DI+1.75% ceiling. Likewise, a BRL55m portion pays DI+2.05%, under a DI+2.75% limit. A banker on the deal calls the final rates “unexpected,” and owed to much stronger interest than is normally seen in the FIDC market. “This shows there is demand for those transactions that are well structured from a top-class originator,” he says. There was more than BRL2bn in demand from 48 accounts. The deal is also said to be the first with a structure in which amortization proceeds as the deal performs, rather than on a set schedule, a feature common to other parts of the world in which additional risk transfers to investors. The transaction is backed by vehicle loans made by Volkswagen customers. Itau and HSBC are managing the sale, rated AAA on a national scale. The deal should officially close in May.
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IFC Eyes Stake in Brazil Pharma
The World Bank’s International Finance Corporation (IFC) is considering a $50m investment in pharmaceutical retailer Brazil Pharma, it says. The investment would be a combination of an acquisition of the company’s equity and an IFC loan, according to a proposed investment summary. A spokeswoman for Brazil Pharma says the deal would help fund the company’s growth, but notes that the exact investment details still remain under discussion. A spokeswoman at the IFC did not return a call for comment. The Brazilian company currently has a presence in over 13 states, out of 27 in the South American country and it is in the process of expanding its reach. In early February, the company acquired Sant’Ana Drogaria Farmacias for a BRL495.7m ($288.3m) price tag.