S&P has upgraded Brazil’s BicBanco to BB+ (stable) from BB minus and taken it off positive credit watch. S&P says the upgrade reflects the bank’s success in extending loans to middle-market corporates in Brazil. It also expects earnings and credit fundamentals to remain good in the medium-term and above that of peers in the Brazilian midsize niche.
Category: Structured Finance
Posted inDaily Brief
Bonsucesso Talks 9 Handle
Banco Bonsucesso is set to price a 2020 Tier 2 bond today, having given yield guidance of 9.25%-9.50%. The Brazilian bank is expected to sell $150m, after meeting investors through Thursday. Espirito Santo and Santander are managing the Ba3 sale.
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CAF Makes Yen Stop
CAF has followed Mexico into the Samurai market, raising JPY14.4bn from Japanese institutional investors in a deal not guaranteed by JBIC. The Venezuela-based multilateral lender, an experienced issuer in Japan, priced a JPY9.8bn 2014 at par with a 1.56% coupon to yield yen Libor plus 110bp, in line with 100bp-120bp guidance. A JPY4.6bn 2015 came at par with a 1.82% coupon to yield yen Libor plus 130bp, in line with 120bp-140bp guidance. Mizuho and Nomura managed the sale, rated A+. CAF raised $74m equivalent from 2014 bonds in its previous Japanese sale in May. Mexico raised JPY150bn in 2020 bonds this week via a JBIC-backed deal, also through Mizuho and Nomura. Panama is set to hit the Japanese market next year, through Daiwa and Mitsubishi.
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Panama City Gets CAF Financing
Multilateral CAF says it has approved a $120m loan for Panama’s ministry of finance and economy to improve sanitary conditions in Panama City. Terms were not disclosed and CAF officials could not be reached for comment.
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CAF Forges Russia Link
Multilateral CAF and Russian development bank Vnesheconombank have agreed to work together to explore opportunities to co-finance projects, offer credit lines and exchange information.
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CAF Hits up Swiss, Looks to Japan
CAF has raised CHF250m ($261m) in new 2015 bonds in the Swiss market, and is closing in on a new Japanese bond. The Swiss bonds priced at 100.334 with a 2.625% coupon to yield 2.650%, or mid-swaps plus 146bp, in line with mid-swaps plus 147bp guidance. The deal was upsized from CHF150m, according to a CAF official, as demand topped CHF250m. Some 40 investors participated. It is the second-ever Swiss issue for CAF, following a CHF200m sale in 2008. The multilateral lender may also price a Samurai bond in the Japanese market as soon as this week, the official says, after the bank recently filed for a shelf allowing for JPY100bn in new transactions. He declines to give details of the current sale, though notes Mizuho and Nomura are managing, and the issue won’t require a guarantee from the Japan Bank for International Cooperation, unlike other recent LatAm issuance in Japan. CAF sold JPY10bn in 2019 bonds last year.
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HSBC, Brasil Brokers Partner
HSBC and housing broker Brasil Brokers Participacoes have signed a 5-year partnership agreement offer mortgage loans in Brazil, the latter says in a regulatory filing. As part of the deal, HSBC will pay Brasil Brokers BRL45m ($27m) in commissions. Brasil Brokers, which has a brokerage team of 12,000 people, reported sales of BRL11.5bn in 2009.
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Brazilian Bank Wants in on Sub-Debt Party
Banco Bonsucesso is preparing to issue $150m in 2020 subordinated bonds, following the trend of Latin American, and especially Brazilian, banks of all sizes picking up junior debt this year while rates are low. The bank did not disclose what the use of proceeds would be. The mid-size Brazilian bank will meet investors Monday through Thursday, according to bankers managing the Tier 2 sale. Moody’s has assigned a Ba3 rating. Espirito Santo and Santander are managing the sale.
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Lojas Renner Plans ABS
Brazil’s Lojas Renner is planning an ABS transaction in the country’s domestic market, according to regulatory documents. The retailer seeks to raise BRL350m via a 3-year credit receivable securitization. It does not indicate the interest rate or the rating of the transaction. Itau is managing the sale.
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Peru Sets Up Infrastructure Fund
Peru’s finance ministry announced the creation of a $460m infrastructure fund. Local pension funds have committed $220m, Brookfield Asset Management has committed $100m, multilateral CAF $40m and Cofide $100m. The fund will invest in companies in the energy, gas, transportation, water and health sectors among others in Peru. A ministry spokeswoman says the fund will invest in shares and convertible debt. She adds that the fund will begin investing in 2011 and expects to conclude the investment period in 4 years. The fund will hold investments for about 12 years on average, she says. The fund is being managed by Brookfield and AC Capitales, a local private equity shop.