Mexican baker Grupo Bimbo and Peruvian lender Banco de Crédito del Perú (BCP) hopped onto what appears to be a possible rush of Latin American issues in the international bond market this week, raising a total of $1.56 billion in back-to-back two-part deals on Thursday.
Bimbo raised $1.25 billion after issuing $800 million worth of new 12-year bonds and adding $450 million to its 6.05% 2029 notes, according to a source familiar with the deal.
The company priced the 5.375% 2036s at $98.90 to yield 5.501%, or 150 basis points over similar US Treasury bonds, after opening the initial price talk around 180 basis points. Bimbo priced the tap at $103.95 to yield 5.128%, equal to a spread of 115 basis points, after opening the deal at around 150 points, the source said.
Investors placed as much as $4.8 billion in orders for the 2036s and $2.3 billion for the 2029s, according to the source.
Bank of America, Mizuho, Citi and J.P. Morgan were the active joint bookrunners along with MUFG and Rabobank as co-managers on the Rule 144A/ Reg S bond sale.
Fitch Ratings and S&P Global Ratings both assigned the bonds a BBB+ rating.
According to the rating agencies, Bimbo plans to use the proceeds from the bond sale for covering general corporate purposes, including for funding investments, refinancing existing debts and adding to working capital.
The company sold $450 million worth of the 2029s in a two-part sale in October last year.
BCP SNARES $811 MILLION
Meanwhile, BCP raised roughly $811 million in the sale of five-year bonds that was split between $500 million in US dollars and PEN1.15 billion ($311 million) in Peruvian soles, according to a source involved in the deal.
BCP priced the dollar-denominated 5.85% 2029 bonds at $99.90 to yield 5.873%, or 190 basis points over equivalent US Treasures. It opened the initial price talk in the very low 200 basis points area and set the guidance just above the same rate, plus or minus 10 basis points, before launching the deal, the source said.
BCP priced the soles-denominated 7.85% 2029 notes at $99.39 to yield 8% after opening the deal around the same rate, the source added.
Orders for the 2029s in US dollars peaked at $1 billion, while demand for the tranche in local currency “was around the amount issued,” according to the source.
Bank of America, J.P. Morgan and Santander were joint bookrunners on the bond sale.
S&P assigned the notes a BBB+ rating, while Fitch is expected to give it the same grade.
The bank, Peru’s biggest, plans to use the proceeds for general corporate purposes and aims to extend its debt maturity by repaying shorter-term financing that includes its 4.65% 2024 bonds, according to the rating agencies.
The transactions follow international sales by the Mexican subsidiary of Spain’s BBVA, which raised $900 million in the sale of 15-year Tier 2 notes on Wednesday, and the Mexican government’s record $7.5 billion sale on Tuesday.