Mexican cement company Cemex has extended pricing for an up to MXP2.5bn ($207m) in ABS bonds until later this month as it addresses regulatory requests. The cement company was expected to price Thursday. The bonds are rated AAA on a local scale. Ixe is the sole lead.
Category: Structured Finance
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Paraguay Gets $75m from CAF
Regional development bank CAF has provided Paraguay with a $75m loan to support a government program to develop a more efficient and reliable national electricity system. The loan will also comprise an additional $20m in co-financing from the OPEC Fund for International Development (OFID). The estimated cost of the development program is $111m, of which 68% will be financed by CAF, 18% by the OFID and the remaining 14% financed by resources from the National Electricity Administration.
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ENA Hits the Road
Empresa Nacional de Autopista (ENA) is meeting US institutional accounts next week to market a 144A/RegS dollar bond. The borrower, which is wholly owned by the Republic of Panama, is scheduled to be in New York on Tuesday and Wednesday next week. Proceeds are partially slated to refinance a $150m of 6.95% amortizing 2025s that helped finance the Corredor Sur tollroad covering 19.5km of Panamanian highway. ICA Panama is selling its Corredor Sur highway concession to the government of Panama for $420m, but the deal is subject to the pre-payment of the Corredor Sur bonds. ENA is expected to come at a pickup to the sovereign’s 5.25% 2020s, which have been trading at 3.44%-3.42%.. With market volatility rising, however, one senior portfolio manager with exposure to Panamanian debt said he is watching the transaction closely but may opt to sit on his current positions. “Right now macro issues are more important than the credit,” he says adding that market conditions may influence ENA’s decision to proceed. HSBC and Global Bank are the leads.
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CAF Preps Local MXN Bonds
Regional development bank Corporacion Andina de Fomento (CAF) plans to issue up to MXP 1.5bn ($128m) in 3-year and 10-year bonds through lead BBVA Bancomer. The 3-year floater is expected to price at a spread over TIIE with the 10-year at a fixed rate. CAF has a global A1/A +/ A+ rating from Moody’s, S&P and Fitch respectively. The MXP bonds have yet to receive a local rating. CAF last came to market in June when it retapped its 3.75% 2016s for another $500m. The MXP bonds have an August 19 issue date.
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Cemex Eases On ABS Price Talk
Price talk for Cemex’s new local asset backed bonds is being heard at 100bp-130bp over TIIE as the Mexican cement company prepares to raise up to MXN2.8bn ($239m) on August 4. Price talk is 50bp higher than TIIE+80bp whispers quoted to investors last month, but still at least 70bp below the minimum of TIIE + 200bp some investors had been seeking to participate. The bond is backed by account receivables and carries a tenor that is slightly over 4-years, with proceeds slated for debt refinancing. The new bonds are structured similarly to Cemex’s MXP2.2bn of account receivable backed bonds due December 2011 which were priced at TIIE + 250bp in 2009 and saw some MXP2.86bn in demand. Proceeds from the upcoming issue are partly going to refinance the existing 2011s and for working capital. The new bonds are expected to carry a local mxAAA rating. Ixe is sole lead.
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Brazilian Lender Readies FIDC
Banco Intermedium is preparing a BRL150m ($94m) FIDC transaction backed by credit receivables from government agencies for sale in the domestic market. The 4-year fund pays a spread to the DI that is to be defined during the bookbuilding process. The transaction has not yet been rated, and is expected to close in October. The FIDC will purchase receivables for credits originated by the social security institute INSS and other public entities. Itau is managing the sale.
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Haiti Receives IDB Grant
Haiti will receive two grants from the IDB totaling $90m to help finance construction of an industrial park in its northern region and to support efforts to modernize its energy sector. Since the 2010 earthquake, the IDB has approved more than $340m in grants and disbursed $255m. About 70% of Haiti’s population has no access to electricity. Available generation capacity stands at less than one-third of the estimated 500 megawatt demand.
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GrupoSura Pays up for ING Assets
Colombia’s Grupo de Inversiones Suramericana (GrupoSura) is paying a hefty price for ING’s insurance and other financial assets in Chile, Colombia, Mexico Uruguay and Peru, according to analysts that follow the company. GrupoSura agreed to acquire the assets for EUR2.68bn ($3.9bn), consisting of EUR65m in assumed debt and EUR2.615bn in cash. The deal values the assets at a 1.8x book value, or 18x estimated 2011 earnings on a GAAP basis. The deal comes at the high end of analyst expectations for the value of the operations, and at a significant premium to the 0.7x price-to-book ratio. “It’s an extremely good price,” says Jan Willem Weidama of ABN Amro, who says the consensus value for the assets was around EUR1.9bn. The deal excludes ING’s 36% stake in Brazilian insurer Sul America, which is valued for around EUR800m, around 2x book value. “Relative to our expectations it’s at the top end,” says a Europe-based equity investor. “They’re solid activities. They have leading market positions” in their respective countries. “If you get 1.8x…that seems very good,” says Dirk Peeters of KBC Securities “It’s a very good franchise. The growth expectations are simply higher in that region so that translates into a good price.” The transaction consists of mandatory pension and voluntary savings businesses, ING’s 80% stake in AFP Integra and 33.7% stake in InVita Seguros de Vida, including the company’s investment management capabilities in those countries. In May, Gruposura issued $300m in 2021 debut dollar bonds which it could use to help finance the acquisition. Gruposura says it is also hearing interest from international funds that may be interested in participating in the financing of the acquisition. Goldman Sachs managed the sale, while UBS and Bancolombia advised GrupoSura. GrupoSura’s shares closed COP36,000 on Monday, up from .the COP35,440 close on Friday.
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Mexico Gets IDB Loan
Mexico’s Secretaria de Agricultura, Ganaderia, Desrollo rural, Pesca y Alimentacion (Sagarpa) will receive a $190m loan from regional development bank the IDB. The loan has a 25-year term, a 3-year grace period and a rate based on a Libor spread. According to the IDB, it will help finance productivity in the fish and fish-farming sector. The Mexican government will also kick in $74.4m for a total investment of $264.4m, benefiting around 5m agricultural producers. About $70m of the IDB loan will be dedicated to the control and eradication of agrofishing diseases.
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DomRep Gets IDB Loan
The Dominican Republic will receive two loans totaling $78.3m from the IDB to support the construction of two wind farms. The projects will add a total of 80.6MW of production capacity. One loan is for $50.7m and will help fund the Parques Eolicos del Caribe project, being developed by a consortium including Gamesa, Grupo Delta Intur, Aquiles Mateo and Miguel Angel Muniz for a total construction cost of $127m. The second loan, for $27.6m, will go to Grupo Eolico Dominicano, a subsidiary of Spain’s Inveravante. That project is expected to cost $68.9m. Both loans were granted for a 15-year term with interest rates subject to market conditions.