Securitization specialist Titularizadora Colombiana has sold COP382bn ($211m) in RMBS in the domestic market, it says. The 2022 bonds pay a fixed rate of 6.2%, and received demand of 1.98x. Titularizadora self-led the deal, rated AAA on a national scale.
Category: Structured Finance
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Developer Plots RE Fund
JHSF Participacoes plans to launch a Fundo de Investimento Imobiliario (FII) in brazil’s domestic market, it says. The developer has started the registration process to raise equity in a vehicle invested in its properties. JHSF declines to provide additional comment. The developer of commercial, retail, and residential properties has previously raised funds in Brazil’s equity and domestic bond markets.
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Energisa Readies Perp Buyback
Brazil’s Energisa has received board approval to move ahead with a repurchase of its perpetual bonds, it says. The Brazilian electric distributor is looking to buy back the 9.5% coupon senior perpetual NC5s issued in January 2011. Energisa plans to repurchase the $200m principal at the cost of 101% of face value, plus interest incurred up to the buyback date, amounting to $202m. The bonds were trading at 105-106 Monday in price, according to a trader. Bank of America Merrill Lynch, Morgan Stanley and Santander managed the original issue, rated Ba2/BB minus. Energisa is the holding company for five electric distributors in the states of Paraiba, Sergipe, Rio de Janeiro and Minas Gerais.
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Fovissste Preps Next Issuance
Mexican government housing lender Fovissste plans to raise MXP4.8bn ($370m) through a domestic RMBS sale, and is targeting an August 29 pricing, according to a regulatory filing. The 2042 bond would be denominated in UDIs and pay a fixed rate. BBVA Bancomer, Banorte-IXE and Santander are managing the sale, rated AAA on a national scale. The government-backed lender last visited the market in June, raising MXP5.20bn in 2042 notes paying 4.30%.
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Itau Buys Out Retail Credit JV
Itau has agreed to pay BRL83m ($41m) to acquire the stake it still does not own in a retail financing joint venture with Lojas Americanas, it says. Lojas Americanas is to pay BRL112m to end a tie-up agreement with Itau that prevented it from teaming up with another bank for this type of JV.
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Caixa to Beef up Loan Book
Brazil’s Caixa Economica Federal plans to increase its loan book by a whopping 42% percent this year, up from 33%. Lending already grew 44% in the first half and the state-owned bank should hit BRL183bn ($91bn) in 2012, according to remarks by its CEO confirmed by a spokeswoman. The increase should be driven by an expansion in mortgage and consumer lending. The bank is also discussing a potential capital injection with the government that might take place before year-end.
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Metro Securitization Sets Target
The Dominican Republic’s Metro Country Club is heard looking to pay around 14% on a new $150m 2019 bond. The developer is expected to be wrapping up investor meetings this week, according to sources familiar with the process, with an aim to close the securitization the week of August 13. The deal with a 3.5-year average life is backed by flows related to the sale and operational revenues from the Las Olas, Marbella, Costa Blanca and Metro Country Club projects. Proceeds will be used to refinance $75m in existing debt, as well as complete current projects and fund the acquisition of land for new ones. Bank of America Merrill Lynch is managing the process, done through the MCC Finance vehicle.
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Latam Airlines Lands Exim-Backed Bond
Latam Airlines Group has issued $288m in bonds guaranteed by the US Export-Import Bank. Issued through the Caroboa Leasing vehicle, the 2024 bonds with a 6.19-year average life priced at par with a 1.829% coupon, or MS+67bp, pricing inside of 70bp-75bp guidance. Proceeds from the issue will help the company formed from the fusion of Chile’s Lan and Brazil’s Tam fund the purchase of two new Boeing aircraft. Credit Agricole and Goldman Sachs managed the sale, aimed at US high-grade accounts and rated AAA. Mexico’s Pemex has taken advantage of US Exim guarantees to issue $1.2bn in the US market at lower rates in the past two months.
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CAF Gets Asian Loan
Corporacion Andina de Fomento (CAF) has closed a $113m syndicated loan, it says, done through a group of Asian banks. The 3.5-year bullet loan pays Libor+97.5bp and was arranged by Mizuho and Bank of Taiwan, with participation from the Export-Import Bank of the Republic of China and the Land Bank of Taiwan. The loan comes as part of CAF’s strategy of expanding its investor base in the loan market and particularly into Asia, says a person familiar with the company’s plans. CAF could also look to tap the market again at the end of this year or next and expand its base to potentially include banks from Hong Kong. In July, Moody’s upgraded CAF to Aa3 from A1. CAF also has a AA minus rating from Japan Credit Rating Agency.
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Mexican Preps Domestic Toll Road Securitization
Mexico’s Red de Carreteras de Occidente (RCO) is planning to begin marketing next week a toll road securitization targeting MXP6bn-MXP8bn ($450m-$600m), according to sources following the process. It would be the first such sale in Mexico since October of last year, the first for RCO – winner of the 2007 road concession originally known as Farac – and would represent a sizeable transaction for a Mexican local securitization market seeking greater supply. RCO is targeting MXP6-8bn, though it could issue as much as MXP10bn, through two tranches. A 15-year fixed-rate peso-denominated tranche has an 11-year average life, and 20-year UDI-denominated UDI portion has a 14-year average life. The bonds are backed by future toll road revenues, and come with a partial guarantee by government development bank Banobras. “There is appetite for long-term bonds and investors are quite comfortable with the plans of the issuer, given familiarity with them from when they issued a CCD [certificado de capital de desarollo] in 2009,” says a Mexico-based investor. The bond market offers a good alternative to refinancing for RCO, which has significant syndicated loan debt, according to sources following the deal. Market conditions are more favorable to issue a securitization of this size and tenor more so this year than last, they note, with more liquidity and appetite now. The project is not only a mature one with years in operation, but also boasts growth potential. The asset offers the fastest road connection between two of the most populous cities in Mexico – Mexico City and Guadalajara. With the roadshow beginning next week, pricing is scheduled as soon as September. Ratings are expected to be AAA on a national scale. BBVA Bancomer, HSBC, Inbursa and Santander are managing the sale, with Goldman Sachs and HSBC as structuring agents. RCO raised MXP6.5bn in the CCD markets in 2009. The domestic market was able to place toll road securitization issuance last year, but not with great size