Securitization specialist Titularizadora Colombia has sold COP327bn ($184m) of 10-year RMBS bonds in the local market. The securities, known as TIPs, pay a fixed rate of 7.49%. The issue was part of a COP385bn sale that included subordinated debt, and saw total demand of 1.24x. Titularizadora managed the sale itself, aided by local brokerages. In a previous November sale, Titularizadora sold COP379.3bn of the 10-year TIPs at a rate of 7.6%.
Category: Structured Finance
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Infonavit Preps RMBS
Mexican mortgage and social services entity Infonavit plans to sell an up to MXP3bn ($235m) UDI-denominated RMBS bond in the domestic market at the end of March. The 28-year security will be backed by Infonavit mortgages. Proceeds will be used to create new mortgages. Banamex and BBVA Bancomer are managing the AAA rated transaction. Infonavit last sold MXP4.97bn in UDI-denominated 28-year RMBS bonds in early February, pricing them at 4.50% or Udibonos+280bp, via Banamex and HSBC.
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Volkswagen Defines BRL Securitization
Brazil’s Banco Volkswagen plans to raise BRL1.01bn ($592m) through a vehicle loan securitization done in the FIDC market. The 6-year fund should launch in May, according to Standard & Poor’s, which rates the BRL875m senior portion at AAA on a national scale, and assigns an A+ to a BRL55m mezzanine portion. The interest rate is to be determined during the bookbuilding process. Itau and HSBC are managing the sale.
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IDB Approves $130m DR Loan
The IDB has approved an 18-year, $130m senior secured loan for Dominicana de Vías Concesionadas, also known as Dovicon. The funds are expected to be used to rehabilitate 199 kilometers of roads that are part of its Viadom toll-road concession, which connects major cities in the Dominican Republic, as well as for 68 kilometers of new construction. Though approvals have not yet been finalized, the loan is expected to bring together a diversity of multilateral and bilateral institutions as well as commercial banks. The IDB and the company declined to elaborate further on pricing or conditions.
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Infonavit Builds its Largest RMBS
Mexico’s Infonavit sold MXP4.973bn ($391m) of RMBS Wednesday, marking its largest ever issue of this kind in the domestic markets. The state mortgage lender issued a UDI-denominated 28-year bond with 6.2 year average life that priced at 4.50% or 280bp over the government’s UDIbonos, falling in line with 4.45% area price talk. The transaction was heard 1.41x oversubscribed after over 70 accounts participated, including private banking, insurance companies, investment funds, pension funds and bank treasuries. Proceeds will be used to create new mortgages. Banamex and HSBC led the transaction, rated AAA on a national scale. Infonavit plans to issue its next bond issue, a MXP3bn in 28-year UDI-denominated bonds with Banamex and BBVA Bancomer in March or April. Infonavit’s last bond was issued in December, a MXP1.1bn 2039 that priced at UDIbonos plus 264bp, locking in the lender’s lowest coupon for the year at 4.45%. Banamex led that transaction, rated AAA on a national scale. The state mortgage lender’s deal comes under a new MXP10bn program.
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Cabei Returns to USD Market after Three Year Hiatus
Central American development bank Cabei tapped both the international and local markets Thursday to raise $367m in one fell swoop. The borrower returned to the dollar markets for the first time since 2009, tempted by what remain ultra-low yields and the strong performance of recent deals. Cabei priced a $250m 5-year at 99.104 with a 3.875% coupon to yield 4.075%, at the tight end of 4.125% area guidance (+/-5bp). Capped at $250m, the deal saw largely buy-and-hold accounts participate, driving demand up to 3x. Appetite for the paper largely came from the US, but there was also strong participation from European accounts familiar with the name now that Cabei has made several forays in the Swiss franc market. Ratings are A2/A minus. Citi and HSBC acted as bookrunners. The deal came as Cabei also issued MXN1.5bn ($117m) in the Mexican domestic bond market yesterday. The 3-year bonds pay TIIE+15bp, in line with expectations, and the issue saw MXN2.4bn of demand. Banamex led the sale, rated AAA on a national scale. Buyers were said to be a diversified mix. Proceeds from both deals are expected to be used for general corporate purposes.
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Dibens Closes Leasing Operation
Brazil’s Dibens Leasing, a unit of Itau, has closed on a fundraising transaction that could reach BRL50bn ($28.74bn) in size as it looks to support its leasing operations, according to regulatory documents. The 20-year deal is structured as a debenture and was expected to be sold to lead manager Itau. It is divided into 26 tranches each paying 100% of the DI. Itau officials did not respond to requests for additional comment.
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Davivenda Snaps up HSBC’s CentAm Assets
HSBC has sold operations in 3 Central American countries to Colombia’s Davivienda for $801m, as the global bank continues to cut back in LatAm The move also marks a big step for Colombia’s largest bank in its ambitious expansion plans abroad, allowing it to grow some 20%. In the all-cash deal, Davivienda takes over HSBC’s retail, corporate, commercial and insurance businesses in Costa Rica, El Salvador and Honduras, a network of 136 branches. As of September, these businesses represented $4.3bn in assets, with $2.6bn in loans, $3bn in deposits and insurance premiums of $42m. Also operating in Panama and Miami, the Colombian bank has been assembling a war chest with the expressed intent to expand in Peru, Chile and Central America. The bank raised $375m-equivalent in a local equity follow on last year, and is considering a New York equity listing and a possible 144a bond debut this year. The deal came in at 1.4x price to book and a price to earnings ratio of 45x, says David Pelaez, an analyst with Bolsa y Renta. This means the transaction fell below the average 3x price to book seen on deals in Colombia over the past year, according to Bolsa y Renta. The transaction had been in the works for some time, as HSBC has sought to divest assets in the region including a still pending sale of its property and casualty insurance business in Argentina and Mexico. Officials at HSBC would not comment on the CentAm sale or their other pending deals. Davivienda officials could not immediately comment further. HSBC’s own investment banking arm advised it on the deal, and UBS advised Davivienda. Last year, HSBC began searching for potential buyers for three separate blocks of LatAm assets. This included its property and casualty insurance business in Mexico and Argentina for a price tage of roughly $1bn, according to people with knowledge of the plans, as well as its Central American banking units and its consumer finance arm in Brazil. Last month, Brazil’s Bradesco expressed intere
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Bonsucesso Upsizes FIDC
Brazil’s Banco Bonsucesso has upsized a local asset-backed transaction to BRL315m ($176m) from BRL250m. The 2017 deal backed by credit receivables using the FIDC structure pays 8.5% and is adjusted for inflation. The fund created in the deal is administered and structured by Bradesco. BTG Pactual managed the transaction, rated AAA on a national scale.
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Monsanto Plans New FIDC
Agricultural company Monsanto is planning to raise BRL176m ($99m) through its third domestic structured finance transaction using Brazil’s FIDC structure. The 2013 fund created in the transaction would pay investors a return of the DI+1.6%. Santander is managing the sale, rated AAA on a national scale.