Mexican state-run lender Instituto Fonacot has issued MXP1.665bn ($122m) in 3-year bonds. The transaction was 2.23x oversubscribed and priced at TIIE+65bp after generating some MXP3.6bn in demand. Scotia and BBVA Bancomer managed the transaction, rated AAA on a local scale. Infonacot last visited the local market in 2010, paying TIIE+39bp on a 3-year bond, via the same leads.
Category: Structured Finance
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IDB Approves $200m Argentina Road Loan
The IDB has approved a 25-year, $200m loan so Argentina’s government can improve the country’s roads. The loan has a 4-year grace period and variable interest rate based on Libor. The interest rate was not specified. Road safety is a priority for the Argentine government, IDB project team leader Fernando Orduz explains. The loan is expected to finance road infrastructure in provinces including Mendoza, Buenos Aires, San Juan and Entre Rios.
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BCP Signs $150m China Loan
Banco de Credito BCP has signed a 5-year $150m loan with China Development Bank, marking the Peruvian bank’s first such transaction with CDB. The move represents an opportunity for financing and also for strengthening relationships with China, says BCP. The spread over Libor was not disclosed.
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PDG Preps Land Securitization
Two Brazilian landowners plan to raise BRL145m ($78m) from a securitization of payments owed them by a group of projects developed by PDG Realty, according to S&P, who rates the deal A on a national scale. The 2015 transaction is backed by credit receivables related to the PDG’s Greenville development and other projects, and should pay the DI+1.75%. Hortoville Empreendimentos and Gobi Empreendimentos are the selling landowners. Itau is managing the sale.
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GrupoSura Takes WB as Stakeholder in ING Deal
Colombia’s Grupo de Inversiones Suramericana (GrupoSura) has agreed to take on the World Bank as a minority stakeholder in its recent $3.76bn (EUR2.68bn) purchase of ING’s Latin American pension and insurance assets. The International Finance Corporation (IFC), the World Bank’s investment arm, has paid $200m for a 5% stake in the business, the company confirmed. A GrupoSura official said the Colombian financial holding is also contemplating as many as two additional minority partners in the deal which could be announced in days. GrupoSura’s plan is to take on as many as three minority partners before closing the ING deal on Dec.20. The minority partners will control no more than 25% of the business. In July, the Colombian firm struck a deal to buy ING’s pension and insurance assets in Chile, Colombia, Mexico, Uruguay and Peru for EUR2.68bn, consisting of EUR65m in assumed debt and EUR2.615bn in cash. At the time, the deal valued the ING assets at a 1.8x book value, or 18x estimated 2011 earnings on a GAAP basis, a significant premium to the 0.7x price-to-book ratio. As such, the deal came at the high end of analyst estimates for the value of the assets.
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Titularizadora Places TIPs
Securitization specialist Titularizadora Colombia has sold COP379.3bn ($198.1m) of 10-year MBSs, or TIPs as they are called locally, at a rate of 7.6% in the local markets. The issue was rated AAA on a national scale. The sale saw demand above COP384bn. Titularizadora previously sold COP258bn of senior RMBS bonds in September.
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Guatemala’s Industrial Preps More DPRs
Guatemala’s Banco Industrial will likely come to market next year with another diversified payments rights (DPR) bond, Luis Jorge Sifontes, assistant director of external financing, tells LatinFinance. “For us it is an efficient [way to raise funding] because it gives us better pricing,” he adds. It most recently raised $205m through a dual-tranche DPR issue. The 7-year was split into fixed and floating rate portions paying around mid 5% and L+237bp respectively. It also placed a 10-year at around L+350bp. On these types of trades, the bank has traditionally mandated Wachovia, though Citigroup led a transaction in 2007. The bonds are backed by remittances that the bank receives from companies and families. The borrower has also tapped the international markets twice with subordinated issues, most recently in July when Bank of America Merrill Lynch (BAML) led a $150m 10-year Tier 2 issue that was priced at par to yield 8.25%. However, Sifontes says the bank has no need to raise more subordinate debt and is unlikely to return to the market in the near-term with these kinds of transactions.
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HSBC Hawks LatAm Assets
HSBC is seeking to sell some of its assets in Latin America, including part of the bank’s insurance business, operations in smaller markets, as well as its Brazilian consumer finance arm, according to people familiar with the process. The bank is primarily seeking to sell off its property and casualty insurance business in Argentina and Mexico, where the bulk of that business lies, in a deal that could reach $1bn. Separately, HSBC is also seeking to shed several units in certain smaller LatAm countries, in what could be another $1bn deal. Finally, the bank is also looking to sell its consumer finance arm in Brazil. HSBC has retained Goldman Sachs as an advisor in the insurance sale process, and its own investment banking division is also advising in all three sales efforts, according to people with knowledge of the bank’s plans. A spokeswoman for HSBC declines to comment. Global and regional players have shown interest for the bank’s assets in LatAm, according to the people familiar, but noted that HSBC’s consumer finance arm in Brazil is a business that would likely make more sense for an established local bank that can leverage those assets.
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Itau Unit Preps Mega Leasing Debenture
Brazil’s Dibens Leasing, a unit of Itau, is preparing an up to BRL20bn ($11.43bn) fundraising transaction to support its leasing operations, according to regulatory documents. To be structured as a debenture and issued off a BRL50bn shelf, the 20-year deal is expected to be sold to lead manager Itau. The transaction will pay a spread to the DI rate, and is slated to close in January. Itau officials did not respond to requests for comment.
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Brazilian Preps Receivables FIDC
Brazilian factoring company Grupo Sifra is preparing a BRL300m ($180m) securitization of credit receivables, for sale in Brazil’s FIDC market. The open-ended fund has a target return of 125% of the DI rate. It consists of a BRL225m senior tranche and BRL75m subordinated mezzanine tranche. An additional junior subordinated tranche is to remain with the issuer. The deal is backed by a collection of credit receivables from the industrial, service and real estate sectors. Petra Corretores is the administrator, and Empirica is the structuring agent. The senior tranche is rated AA on a national scale.