Brazil’s Energisa, shopping a NC5 perp this week, has set 9.5% area yield guidance for the bond, expected to price as soon as today at $200m. The level includes a premium for an interest deferral option included in the bond, investors say. One potential buyer estimates that the electric distribution holdco would pay 100bp less for a more traditional perp. The structure allows coupons to be deferred at any time in exchange for a 100bp step-up and the halting of dividend payments on equity. Cemex has used a similar structure in the past. Though this hybrid structure is usually seen in a subordinated deal, this bond is senior. Fitch and Moody’s do not offer equity credit, and assign BB minus and Ba2 ratings, respectively. BAML, Morgan Stanley and Santander are managing the sale. Proceeds are marked for general corporate purposes. Energisa is the holding company for 5 electric distributors in the states of Paraiba, Sergipe, Rio de Janeiro and Minas Gerais, and has been a frequent issuer in Brazil’s local bond market.
Category: Structured Finance
CAF Retaps CHF Bond
CAF has reopened its 2.625% of 2015 Swiss Franc-denominated bond to raise CHF130m. The A+ Andean multilateral reopened at 99.791 to yield 2.774%, or mid-swaps plus 140bp. The price comes inside both the spread of the original issue (146bp) and the secondary (143bp), Gabriel Felpeto, CAF’s director of financial policies and international issues, tells LatinFinance. “According to our indications this priced inside of our dollar curve,” he says. Felpeto declines to specify how many basis points within the curve it priced. The tap was done to take advantage of demand left over from the original October sale. The outstanding is now CHF380m. Credit Suisse managed the sale.
Neuquen Plans Oil-Backed Bond
Argentina’s Neuquen province plans to sell up to $260m in bonds backed by oil royalties, according to an official at the province’s finance ministry. The B rated province is considering a maturity of 8-10 years, and will begin marketing the bonds in late February, with an eye on a March sale. Barclays and Citi have been hired to manage the sale, alongside locals Banco Macro and Puente Hermanos. The issuer circulated an RFP last year and is expected to use a structure similar to the ABS issued last year by the Chubut province. Chubut raised $150m in a 7.75% of 2020 in July 2010 through securitization of oil and gas royalties. Neuquen’s last bond was a $125m 7-year oil royalty ABS in 2007 with an 8.656% coupon, according to Dealogic.
Argentina Gets IDB Loan
Argentina will receive a $120m loan from the IDB to improve electricity service in 18 provinces, according to the multilateral. The deal has an amortization period of 25 years, with a grace period of 3.5 years and an interest rate based on Libor. The government of Argentina will contribute $120m equivalent in local counterpart resources. An $84m loan from CAF will constitute 70% of that. The loan will support the government’s effort to overhaul the country’s energy sector through its federal electricity transmission plan.
Bladex Still Plans Chile Bond
Panama-based multilateral bank Bladex is still expected to issue its long awaited UF-denominated bond in Chile, even though it has also closed on a $130m 3-year syndicated loan with commitments from 10 banks. A Bladex spokeswoman confirms that the $130m syndicated loan does not replace the UF deal in Chile. The UF bond, set to be the first huaso bond of the year, is expected to issue next week, according to a banker on the deal. A banker off the deal says the issue, for up to UF2.5m ($110m) will have 2 tranches, one for 3 years and another for 5 years. Proceeds will go to finance lending operations. BBVA is heard leading the A+/AA minus issue. Bladex had been expected to launch a huaso bond for about a year, the bankers say. Mexico’s America Movil did the last huaso, selling UF5m in 2035 notes last May. Banchile-Citi and Santander managed that sale, rated AA+.
Bladex Closes Syndicated Loan
Bladex, the Panama-based LatAm multilateral bank, has closed syndication on a $130m 3-year loan, according to a banker with knowledge of the transaction. The transaction was launched in December, through Mizuho, after investor meetings in Taipei, Tokyo and Hong Kong, and was syndicated to Asian banks. The multilateral had originally planned to borrow $75m, but expects to sign for $130m as a result of strong demand, the banker says. Commitments are heard to have come from 10 banks. Signing is expected on 18 January, adds the banker.
Mexico Gets 2 IDB Loans
The IDB has approved 2 loans to the Mexican government worth a total of $600m. One loan, for $350m, will finance improvements in the physical infrastructure of 20,000 schools and the other, for $250m, will help expand water service to rural communities. Mexico’s finance ministry says both loans have terms of 25 years with a grace period of 4 years and a rate based on Libor. A ministry spokeswoman does not disclose the actual interest rate.
Banco Pine Readies Loan Securitization
Banco Pine is preparing a BRL207m loan securitization in Brazil’s local market, using the FIDC structure, according to regulatory documents. The 4.5-year FIDC is expected to pay interest at the DI rate plus 2.0%, and will be backed by various types of credit originated by the mid-sized lender. BTG Pactual is managing the deal, rated AA+ on a national scale.
Pichincha Gets IDB Ecuador Loan
Banco Pichincha has closed a $22m syndicated loan, via the IDB, to help fund lending for housing and to support micro, small and medium sized enterprises. In 2008, the IDB closed a 6-year A loan for $50m. In 2010, Pichincha approached the IDB for the B loan, the development bank says. It adds that this is the first international syndication to an Ecuadorian financial institution in over a decade. “This transaction will contribute to boost international confidence in the Ecuadorian financial system and its capacity to contribute to economic development,” said Santiago Bayas, Pichincha’s vice president of treasury. Of the total, $10m came from Global Bank in Panama, $5m from Dexia Micro-Credit Fund, managed by BlueOrchard, $5m from Banco Aliado in Panama and $2m from Panama’s Multibank.
CAF Supports Paraguay Banks
CAF has approved 2 lines of credit, for $15m each, to BBVA Paraguay and Banco Continental, according to the development bank. The credit facilities will be used to support financing to export clients and those that need to make mid-term investments.