Mortgage Securitization specialist Titularizadora Colombiana plans to sell COP278bn ($154m) in senior RMBS September 21, according to a company official. The 2021 bonds would pay up to 7.8%, and are rated AAA on a national scale. Titularizadora also plans to offer COP47bn in three subordinated tranches. The bonds are backed by loans originated by Bancolombia and Davivienda. The issuer is managing the sale itself.
Category: Structured Finance
Posted inDaily Brief
BI Raises DPR Bond
Guatemala’s Banco Industrial has closed a $150m securitization of dollar-denominated diversified payment rights (DPR), according to a source familiar with the matter. Wells Fargo managed the private placement, rated BBB by Fitch. A $40m 7-year tranche and $60m 10-year tranche were issued at a fixed rate, while a $50m in 7-year portion pays a spread over Libor. Further details of the transaction were not disclosed. The notes are Industrial’s third issuance out of its DPR program established in 2005. The bank processed about $6.2bn in DPR flows in 2010, up from $2.96bn in 2005, according to Fitch.
Posted inDaily Brief
BCP Draws a Crowd
Banco de Credito del Peru (BCP) priced Thursday a $350m 15NC10 subordinated Tier 2 bond (Baa3/BBB) at par to yield 6.875% or UST+489.5bp, coming in line with earlier guidance and at the tight end of low 7 whispers. With BCP’s senior bonds due 2020 trading at 5.5%-5.7%, sub 7 was considered too tight for some and barely sufficient to provide a new issue premium, “This deal came in too tight,” says a LatAm credit analyst. The book shrunk to around $700m from $1bn once leads squeezed whispers lower and some investors declined to participate, but the bond nevertheless jumped on the break and traded up half a point up from reoffer late Thursday afternoon. Leads were heard talking about a final new issue premium of 17bp, in line with the senior to subordinate spread on Brazilian banking names. Bankers say windows are open for investment grade credits like Chile, which sold $1.35bn worth of bonds Wednesday, and Peruvian corporates like BCP. “Peru is very much in the sweet spot for the market right now and with the [Peru] sovereign at investment grade; these are the types of issuers that should be reopening the market, “notes a syndicate manager away from the deal. Bank of America Merrill Lynch and Morgan Stanley led.
Posted inDaily Brief
Bladex Closes Upsized Syndication
LatAm supranational bank Latinoamericano de Comercio Exterior (Bladex) has closed a $165m 3-year loan syndication, bringing a total of 9 banks into the transaction. The deal was upsized from an original $150m target after margins were set at Libor+110bp. Leads were heard offering 90bp fees for tickets of $15m or more, 75bp for tickets of between $10m-$14m and 60bp for tickets of between $5m-$9m. Mizuho and Chang Hwa Commercial Bank jointly arranged the facility, with the former acting as bookrunner and the latter as MLA. BBVA and First Commercial Bank later came in as MLAs, Bank of Taiwan and the Export Import Bank of the Republic of China as arrangers, with Land Bank of Taiwan, Mega International Commercial Bank and Hua Nan participating as senior managers. Proceeds are going toward refinancing existing facilities taken out in 2009.
Posted inMagazine
Crossing the Line
BNDES has made a habit of supporting consolidation to create national champions. But was its attempt to wade into the fight between Carrefour and Casino a miscalculation?
Posted inMagazine
Integrating Platforms
Technological integration through customer relationship management (CRM) platforms is becoming increasingly important as banks broaden their presence across LatAm.
Posted inMagazine
Overblown Bubbles
Fears of a credit bubble in Brazil may be overblown. Loan growth remains robust but it is slowing as central bank measures kick in.
Posted inDaily Brief
BB to Move for Rest of Banco Patagonia
Banco do Brasil is preparing to launch its tag-along offer to buy additional shares in Argentina’s Banco Patagonia. Between September 1 to September 28, the bank is offering holders $0.98 per share – based on a $1.31 price minus a $0.33 dividend payment – for the 38.4% it does not own. This would mean a $271m purchase with full acceptance, though it will almost certainly be less, as shareholders representing 10.6% committed to retain their stake at the time of the sale last year. Banco Patagonia shares closed Friday at ARP5.03 ($1.20). Banco do Brasil bought 51% of Banco Patagonia for $479.7m, or $1.31 per share, in April 2010.
Posted inDaily Brief
Colombian Bank Readies Shares
Banco de Occidente is preparing to sell COP200bn ($112m) in shares in Colombia’s local market following the approval of its prospectus Wednesday. The beginning of the sale period should be announced within the next two weeks. The bank plans to sell 6.06m shares at COP33,000 each, as it looks to raise funds to increase its capital base. Existing shareholders have first rights on the offer. The bank’s own brokerage and Deceval are managing the sale.
Posted inDaily Brief
Santander’s Barbosa Goes to Abril
Fabio Barbosa, who announced his departure from Santander Brasil earlier this week, will become CEO of media conglomerate Grupo Abril. Barbosa is set to leave his current position as chairman of Santander Brasil September 22, and will assume his new role on September 26 at the publisher of numerous media titles, including Veja and Playboy Brazil. Current Abril CEO Giancarlo Civita, a member of the controlling family, will stay on the board. Barbosa had quit his role as CEO of Santander at the beginning of the year and was replaced by Marcial Angel Portela.