Mexico’s Infonavit is looking to pay 4.45% on a planned UDI-denominated RMBS sale of up to MXP5.65bn ($417m) in size, with pricing scheduled for February 8. “There haven’t been changes in the UDIbono rate, so we’d like to price at a similar rate to the last transaction,” says a person familiar with the process. A 4.45% coupon on the 2040 bond would match that of Infonavit’s last bond in December, a MXP1.1bn 2039 that priced at UDIbonos plus 264bp, locking in the lender’s lowest coupon for the year. Banamex led the transaction, rated AAA on a national scale. The state mortgage lender’s planned deal is backed by Infonavit mortgages, and comes under a new MXP10bn program. Proceeds will be used to create new mortgages. Banamex and HSBC are managing the sale, rated AAA on a national scale.
Category: Structured Finance
Infonavit Preps New RMBS
Mexico’s Infonavit is expected to come to the local market next month with the RMBS bond issuance under a new MXP10bn program. The issuer is planning to issue up to MXP5bn ($367m) in 28-year UDI-denominated bonds backed by Infonavit mortgages with a tentative issuance date of February 8. Proceeds will be used to create new mortgages. Banamex and HSBC will manage the sale, rated AAA on a national scale. Infonavit last issued MXP1.1bn of 2039 bonds at 4.45%, or 264bp over the government’s UDIbonos via Banamex in December 2011.
Banobras Prices MXP Bond
Mexico’s Banobras has raised MXP1bn ($73.2m) in the domestic bond market. The development bank priced a 7-year fixed-rate bond last week at 6.32% or Mbonos+60bp. Banamex managed the sale, rated Aaa on a national scale. In November 2011, the development bank priced a MXP5bn 4-year floater flat to TIIE, a MXP500m 10-year UDI-denominated piece at Udibonos+50bp and a MXP1.5bn fixed-rate portion at Mbonos+70bp. Bank of America Merrill Lynch and Banamex managed that sale, rated Aaa on a national scale.
Petrochem Places USD-Linked Debentures
Brazil’s Petropar priced $209m-equivalent in domestic bonds that have their principal indexed to dollars. The 5-year bonds were priced to pay 9.25%, in line with expectations. Bradesco managed the sale, done under the rule 476 restricted format. Petropar manufactures polypropylene products, as well as plastic and metal packaging, and has operations in Brazil, Mexico and the US. Proceeds will help fund the $286m acquisition of US-based Fiberweb Holdings’ hygiene business.
Fovissste Cuts Ribbon on New RMBS
Mexican government housing agency Fovissste has sold MXP4.309bn ($309.8m) in domestic inflation-linked bonds backed by mortgage loans. The 30-year UDI-denominated notes pay 4.60% and were priced at UDIbonos+283bp. The transaction was heard oversubscribed by 1.13x. Fovissste came wide to 4.50% area expectations and failed achieve the 4.45% seen on Infonavit’s MXP1.1bn 2039 issuance last week. Ixe managed Fovissste’s deal, rated AAA on a national scale. Fovissste had last sold MXP3.9bn ($317m) of UDI-denominated 2040 notes in August at 4.25%, or 296bp over UDIbonos.
BNDES Authorized to Fund Eletrobras’s EDP Bid
BNDES would be able to finance Eletrobras’s bid for a stake in Portuguese state-controlled power company EDP under a new rule change. The government of President Dilma Rousseff has adjusted BNDES’ statutes, allowing the bank to use proceeds from external markets to fund the acquisition of assets or for projects and overseas investments by Brazilian companies. The move is being interpreted by observers as an indication that the development bank has been sanctioned to finance the high-profile acquisition. A BNDES spokeswoman says that the decree is very clear that only funds obtained overseas can be lent for asset acquisitions of this sort. That said, she notes, no final decision has been reached yet on any Eletrobras’s financing for the EDP transaction. Eletrobras and fellow Brazilian utility Cemig are part of a group of bidders for a 21.35% stake in EDP. Germany’s E.ON and China’s Three Gorges are reportedly also included in the bidding, the details of which are not yet public.
Cash-Hungry Santander Sells Colombia Unit
Chile’s CorpBanca has agreed to acquire nearly all of Santander’s Colombia unit, in a deal valued at $1.225 billion plus interest. The move marks a substantial sale for the Spanish bank which has been selling assets in LatAm in an effort to bolster the parent’s balance sheet. CorpBanca will acquire a 95% stake for $1.155bn, financed with its own cash and a $450m capital increase from its holding company, the Saieh Group’s CorpGroup Interhold. CorpGroup Interhold also plans to purchase at least an additional 2.85% stake from the remaining 5%. All in all, the CorpBanca and CorpGroup purchases will amount to $1.225bn plus accrued interest of 180-day dollar Libor +1% per year, a deal seen as pricey, but not out of line in a neighborhood where bank assets are expensive. “This is a good asset, and one of the assets Santander can sell at a higher multiple, a bit expensive to the average in Colombia,” says a New York-based FIG analyst, spotting the multiple at around 3.0x book value, compared to Bancolombia trading at 2.4x. A CorpBanca spokeswoman says the acquisition has an implied multiple of 2.7x. The numbers compare with the 3.0x-3.6x seen in Scotia’s $1bn acquisition of 51% of Colpatria in October, also seen as a steep price to enter Colombia. Still, with Colombia attracting lots of attention in the financial space recently – Peru’s BCP paid $76m for 51% of brokerage Correval last week – the New York analyst imagines several foreign and domestic bidders were interested, even at the high prices the country demands. Less clear is to what extent CorpBanca might be able to grow in Colombia. CorpBanca did not have an outside advisor on the deal, the spokeswoman says. Santander officials could not be reached. CorpBanca claims the deal makes it the first Chilean financial institution having a foreign bank subsidiary. At the same time, CorpGroup has struck an agreement to bring in Grupo Santo Domingo as an investor in CorpBanca for $100m. Santander Colombia has $4bn in total a
Infonavit Talks Price on MXP RMBS
Mexico’s Infonavit is looking to pay 4.5% on 28-year UDI-denominated RMBS, scheduled to price Thursday. The state mortgage lender wants to issue up to MXP1.1bn ($82m) in bonds backed by Infonavit mortgages targeted at middle and high-income borrowers. Banamex is managing the sale, rated AAA on a local scale. Infonavit last issued in June, selling MXP3.85bn ($330m) in 2039 bonds with a 4.75% coupon, to yield Udibonos+216bp.
T&T Approved for IDB Loans
Trinidad and Tobago has been approved for $130m in loans from the IDB, with $80m of it earmarked for climate change assessment and framework development and $50m for enhancing financial sector stability. The $80m loan has a 20-year term and four-year grace period, with a variable interest rate based on Libor, while the $50m loan has a 20-year term and 5-year grace period, with a variable interest rate based on Libor.
Infonavit Preps MXP RMBS
Mexican mortgage and social services entity Infonavit plans to sell an up to MXP1.1bn ($82m) UDI-denominated RMBS in the domestic market this week. The 28-year security will be backed by Infonavit mortgages targeted at middle and high income borrowers. Pricing is scheduled for December 7. While official guidance has yet to be released, the issuer is heard considering an interest rate in the 4.5%-5% range. “This is a preliminary forecast as pricing is dependent on how the market is at the moment,” notes a person familiar with the transaction. Proceeds will be used to create new mortgages. Banamex is managing the sale, rated AAA on a local scale.