An eerie silence about Guatemala’s Banco Industrial’s 2068 hybrid Tier-1 capital issue leaves bankers at competing shops assuming the worst. The exact amount of the Ba3/B+ rated Reg S issue was not specified, but a size of $30m was rumored to have placed with locals, well shy of the $100m expected. A coupon in the low 9% area was expected for the first 10 years, after which the interest floats at fixed spread above Libor. Despite captive demand from Guatemalan investors, pricing may have been aggressive for such a complicated structure. Last week in Europe, Natixis placed $750m in A1/A+ perpetual Tier-1 notes at 10%. Guidance was 9%-10% for the fixed portion of the Industrial issue. Credit Suisse is managing the transaction. Neither bankers on the deal nor the issuer answered requests for comment.
Category: Structured Finance
Metrofinanciera Says Places First MXP RMBS
Mexico’s Metrofinanciera has priced MXP750m in 2038 RMBS at TIIE plus 250bp. The deal marks its first collateral-based bond done in pesos rather than the UDI inflation-linked unit, says an executive close to the deal. A pool of more than 2,500 of Metrofinanciera’s own mortgages backs the bonds. They also feature a partial guarantee from SHF. Deutsche Bank managed the sale, rated mxAAA. The Sofol is also heard preparing an UDI-denominated construction loan securitization.
Banco Industrial Awaits Hybrid Issue
Guatemala’s Banco Industrial was expected to price late last week a 2068 hybrid issue to provide it with Tier-1 capital. The exact amount of the Ba3/B+ rated issue was not specified. Guidance had been given at 9%-10% for the fixed portion of the securities, which after 2018 switch to a rate floating above Libor. Credit Suisse is managing the transaction.
Guatemalan Hybrids Expected to Price
Guatemala’s Banco Industrial is expected to price an issue of Tier 1 hybrid securities as soon as today. Guidance of 9-10% was put out earlier this week for the 60-year notes. The issue is rated B+ by Fitch and Ba3 by Moody’s, both of whom expect to assign the equity credit to the notes. Credit Suisse is managing the sale.
IDB Approves Loan to Chile’s Public Transport
The IDB has approved a 16-year $400m non-sovereign guaranteed loan to provide financial support to Transantiago, the public transportation system of Santiago, Chile. The proceeds will be managed by Transantiago Financial Administrator (AFT), the private sector entity responsible for the system’s payments and collections. The loan will also support Chile’s comprehensive plan to improve the operation and quality of Transantiago’s bus and subway services, which are used by some 5.4m passengers a day. The IDB is also preparing a $10m loan for a program led by Chile’s Ministry of Transportation and Telecommunications to establish the Metropolitan Transportation Authority, which will monitor Transantiago’s services.
Banco Industrial Prepares Hybrids
Guatemala’s Banco Industrial is preparing to issue Tier-1 hybrid debt securities due 2068. Guidance on the notes is heard at 9%-10%, says a banker away from the deal. The size of the issuance has yet to be determined. The notes are rated B+ by Fitch and Ba3 by Moody’s, both which expect to give the notes an equity classification. The Guatemalan bank, which has been acquiring local rivals, had planned to do an IPO on the Mexican Bolsa. The deal through Credit Suisse was expected in February, but it is now on ice. Credit Suisse is leading the hybrid. Fresh from buying a Honduran bank and on the verge of opening in El Salvador, Industrial continues to push into still relatively virgin Central American retail banking territory. Guatemala’s largest bank also hopes to be the first to forge a path north, with plans to expand into southern Mexico. Industrial’s holding company BI Capital – registered in Panama – has $6.4bn in assets, $3.5bn in loans, deposits of more than $5.0bn and about $650m in capital.
Titulizadora Colombiana Prices RMBS
Colombian mortgage securitization company Titularizadora Colombiana has placed COP207bn ($116 million) in RMBS. A COP148bn 2018 senior tranche priced at 11.15% and saw about COP320bn in demand, according to a Titularizadora official. A COP42bn 2023 senior tranche meanwhile priced at 11.5%. Two 2023 subordinated pieces totaling COP17bn came at 12.5% and 13.0%. The senior debt is rated AAA by Duff & Phelps. The bonds are backed by a portfolio of mortgage loans from Banco Colpatria and Banco Davivienda. Bancolombia, Afin, Interbolsa, Corficolombiana, Banco de Bogota, Correval and Banco Davivienda managed the RMBS sale.
SuCasita, ING Hipoteca Price Bonds
Mortgage lender Hipotecaria Su Casita priced MXP1.9bn in 2033 RMBS denominated in UDIs. A 209.3m UDI (MXP837.6m) senior tranche with a weighted average life of 3 years priced at 159bp over the UDI Bono. A second 221.6m UDI (MXP886.7m) senior tranche with a weighted average life of 12 years priced at 174bp over the UDI Bono. A 43.5m UDI (MXP174.2m) subordinated tranche priced at 405bp. The first and second senior tranches were 3.3x and 2.9x oversubscribed, respectively, and had been expected at 150bp-160bp. The AAA locally-rated transaction was managed by Santander and HSBC. Separately, mortgage lender ING Hipotecaria priced MXP750m in 2011 bonds at TIIE plus 41bp. The transaction had been expected at anywhere between 40bp-50bp, and was 2x oversubscribed. Proceeds repay the lender’s maturing debt. Santander led the AA rated transaction.
Titulizadora Colombiana Set For Bond Sale
Colombian mortgage securitization company Titularizadora Colombiana is slated to sell COP207bn ($116m) RMBS today. The offer will include a COP148bn 2018 and COP42bn 2023 senior tranches, as well as COP17bn in subordinated notes. The 2018 senior tranche can have a coupon of up to 11.5%, and is rated AAA by Duff & Phelps. The bonds are backed by a portfolio of mortgage loans from lenders Banco Colpatria and Banco Davivienda. Bancolombia, Afin, Interbolsa, Corficolombiana, Banco de Bogota, Correval and Banco Davivienda are placing the notes.
Hipotecaria MXP Debt Set for This Week
Mortgage lender Hipotecaria Su Casita is preparing up to MXP2bn in 2033 RMBS denominated in the UDI inflation-linked unit. About 10% of the bonds will be in a subordinated tranche. The senior tranche could price at 150bp-160bp over the UDIbono, according to bankers on the deal. The AAA rated transaction is set to price Wednesday and managed by Santander and HSBC. Separately, ING Hipotecaria plans to sell MXP750m in 2011 floating-rate bonds the same day. The transaction is expected to price at around TIIE plus 40bp-50bp. Proceeds will repay maturing debt. Santander is managing that sale.