Corporate Bond Research Articles
Bancolombia
Bancolombia 5.95% Due 2021 Analysis & Recommendation- June
Summary
The Colombian economy has benefited from the recovery in oil prices. Gross Domestic Product is expected to come in at 2.8% and 3.2% for 2018 and 2019, respectively. One of the major driving forces behind growth over the next few years will be investment. The government's 4G infrastructure investment program has been slow to advance but should support growth. Private investment has been aided by the recent tax reform incentives, exchange rate and interest rate movements...Read More
Bantrab
Bantrab Senior Trust Update – May 2017
Summary
Bantrab is a bank created under the banking laws of the sovereign state of Guatemala. The Bantrab Senior Trust notes are secured by the Trust. Payment of principal and interest on the notes will be absolutely, unconditionally, and irrevocably guaranteed by Bantrab. However, if the bank fails to make payments, investors will have to sue the Trust itself to recover amounts owing… Read more
Credito Real
Credito Real - June 2023
Summary
Crédito Real (CREAL) is a leading financial institution in Mexico, with a presence in the United States and CentralAmerica. The Company’s focus is consumer lending with a diversified business platform in the following main lines of business: payroll loans; small business loans; used car loans; consumer loans through Instacredit, and group loans. CREAL target market is low and middle-income segments of the population that have historically been underserved by other financial institutions....Read More
Credito Real - November 2022
Summary
Crédito Real (CREAL) is a leading financial institution in Mexico, with a presence in the United States and Central America. The Company’s focus is consumer lending with a diversified business platform in the following main lines of business: payroll loans; small business loans; used car loans; consumer loans through Instacredit and group loans. CREAL’s target market is low and middle-income segments of the population that have historically been underserved by other financial institutions...Read More
Credito Real - August 2022
Summary
Crédito Real (CREAL) is a leading financial institution in Mexico, with a presence in the United States and Central America. The Company’s focus is consumer lending with a diversified business platform in the following main lines of business: payroll loans; small business loans; used car loans; consumer loans through Instacredit and group loans. CREAL’s target market is low and middle-income segments of the population that have historically been underserved by other financial institutions...Read More
Credito Real - February 2022
Summary
Crédito Real (CREAL) is a leading financial institution in Mexico, with a presence in the United States and Central America. The Company’s focus is consumer lending with a diversified business platform in the following main lines of business: payroll loans; small business loans; used car loans; consumer loans through Instacredit and group loans. CREAL’s target market is low and middle-income segments of the population that have historically been underserved by other financial institutions...Read More
Credito Real - June 2021
Summary
Crédito Real (CREAL) is a leading financial institution in Mexico, with presence in the United States, Costa Rica, Panama, Nicaragua and Honduras. The Company’s focus is consumer lending with a diversified business platform. CREAL’s target market is low and middle-income segments of the population that have historically been underserved by other financial institutions...Read More
Credito Real - July 2020
Summary
Credito Real is a leading financial institution in Mexico, with noted presence in the United States, Costa Rica, Panama and Nicaragua. The Company’s focus is consumer lending with a diversified business platform. We recommend the 2026 Credito Real US-denominated global bond at Underweight. This investment is most suitable for investors with a moderate-to-high risk tolerance. The company enjoys a prominent market position with strong operating and profitability margins but is in the business of relatively high-risk consumer loans with a concentration risk in the payroll loans segment...Read More
Credito Real - February 20 2019
Summary
Credito Real is a leading financial institution in Mexico, with a presence in the United States, Costa Rica, Panama and Nicaragua. The Company’s focus is consumer lending with a diversified business platform in the following main lines of business: payroll loans, small business loans, group loans, car loans and personal loans through Instacredit. Credito Real offers its products mainly to the low and middle income segments of the population that have historically been underserved by other financial institutions. In February 2019, the company issued a new 9.5% bond due 2026, raising US$400,000,000.00...Read More
Credito Real Analysis & Recommendation- January 23 2018
Summary
Credito Real is a leading financial institution in Mexico, with a focus on consumer lending. The Company has a diversified and scalable business platform in five main business lines: payroll credits, durable goods loans, small business loans, group loans and used car loans. Credito Real offers products mainly to the low and middle income segments of the population, which historically have been underserved by other financial institutions...Read More
Digicel Group Limited
Digicel Debt Restructuring Proposal Update - October 2023
Summary
The Digicel Group aims to reduce debt by approximately US$1.7 billion through a restructuring plan at different entity levels. The restructuring is reportedly to involve US$1.17 billion at the DL (Digicel Limited) and DIFL (Digicel International Finance Limited) level. This is expected to reduce gross consolidated debt for the group to about US$3 billion from US$4.7 billion. This restructuring is also projected to reduce annual cash interest expense by approximately US$120 million. During the restructuring process, business is not expected to be disrupted as a bridge financing facility has been secured to continue regular operations...Read More
Digicel Group Limited - March 2020
Summary
Digicel is a leading provider of communication services in the Caribbean and South Pacific regions. The Company offers a range of mobile communications, Business Solutions, Cable TV & Broadband and other related products and services to retail, corporate and government customers. Digicel offers HSPA+ or LTE technology in 31 markets and holds the number one mobile market position in 25 of its markets, with a mobile subscriber market share of more than 50% in 22 markets. Mobile services were launched in Jamaica, the Company’s first market, in 2001 and as of September 30, 2019, Digicel had 13.3 million mobile subscribers...Read More
Digicel Group Limited - April 2019
Summary
Digicel is a leading provider of communication services in the Caribbean and South Pacific regions. The Company offers a range of mobile communications, Business Solutions, Cable TV & Broadband and other related products and services to retail, corporate and government customers. Digicel offers HSPA+ or LTE technology in 31 markets and holds the number one mobile market position in 25 of its markets, with a mobile subscriber market share of more than 50% in 22 markets. Mobile services were launched in Jamaica, the Company’s first market, in 2001 and as of December 31, 2018, Digicel had 13.9 million mobile subscribers....Read More
Digicel Group Limited - March 29 2019
Summary
Digicel is a leading provider of communication services in the Caribbean and South Pacific regions. The Company offers a range of mobile communications, Business Solutions, Cable TV & Broadband and other related products and services to retail, corporate and government customers. Digicel offers HSPA+ or LTE technology in 31 markets and holds the number one mobile market position in 25 of its markets, with a mobile subscriber market share of more than 50% in 22 markets. Mobile services were launched in Jamaica, the Company’s first market, in 2001 and as of December 31, 2018, Digicel had 13.9 million mobile subscribers....Read More
Digicel Group Limited - November 26 2018
Summary
Incorporated in Bermuda, Digicel Group Limited and its subsidiaries provide communications services including mobile telephony, business solutions, cable tv, broadband and other related products and services in the Caribbean, South Pacific and Central America. Digicel provides its products and services to retail, corporate (including small and medium-sized enterprises) and government customers. Digicel has 14.2 million subscribers across all its markets and holds the number one mobile market position in 25 of these 31 markets....Read More
Digicel Exchange Offer - Deadline Extended - September 26 2018
Summary
Further to our communication of September 17, 2018, Digicel Group Limited has announced that it will be extending the deadline for its tender offer from September 28 to October 19, 2018. The entity has also announced that all other terms and conditions of the Exchange offer remain the same. If you have already stated your intent to accept or deny the offer then no further action is required on your part. However, if you have not yet stated your intention to us, please do so before 3 pm on Friday, October 12, 2018. To do this you may contact your investment advisor, visit any JMMB location or contact us through our client care centre we will continue to monitor the situation and provide updates along the way...Read More
Digicel Exchange Offer - Analysis & Recommendation - September 7 2018
Summary
Incorporated in Bermuda, Digicel Group Limited and its subsidiaries provide communications services including Mobile telephony, Business solutions, Cable TV & Broadband and other related products and services in the Caribbean, South Pacific and Central America. Digicel provides its products and services to retail, corporate (including small and medium-sized enterprises) and government customers. Digicel has 14.2 million subscribers across all its markets and boasts the number one mobile market position in 25 of these 31 markets.....Read More
Digicel Group Limited Summary – February 2017
Company Overview
Digicel is a leading provider of communications services in the Caribbean and South Pacific regions. The Company provides a range of mobile communications, Business Solutions, Cable TV & Broadband and other related products and services to retail, corporate (including small and medium-sized enterprises) and government customers. Digicel currently provides mobile communications services to 13.6 million subscribers in 31 markets with an aggregate population of approximately 32 million people. They offer HSPA+ or long-term evolution (“LTE”) mobile technology in 30 markets and hold the number one mobile market position in 21 markets, with a mobile subscriber market share of more than 50% in 20 markets as determined by internal Company data. Digicel launched mobile services in Jamaica, its first market, in 2001 and became the market leader there within 15 months of launch, based on a strategy that Digicel has since replicated successfully across many of its markets…Read more
Government Global Bond
Government Global Bond Repurchase Offer – August 2017
Summary
The Government of Jamaica has announced a tender offer to repurchase for cash the following global bonds:-
• 2019 – 8.00%,
• 2021 – 8.50%,
• 2022 – 11.625%
• 2025 – 9.25%… Read more
Grupo Unicomer Co. Ltd
Grupo Unicomer Co. Ltd- Analysis & Recommendation- June 16, 2020
Company Background
Grupo Unicomer Co. Ltd. (GU) is a leading retailer of durable consumer goods such as home appliances, consumer electronics, furniture, motorcycles, mobile devices, computer equipment and optical wear in its Latin American and Caribbean markets. Grupo Unicomer is owned 50% by Infotech of the Caribbean and Central Corp. (which is 100% controlled by Milady Associates Ltd.) and 50% by Gromeron, SLU (which is 100% controlled by El Puerto de Liverpool S.A.B. de C.V.). The company’s current structure was achieved through four large-scale acquisitions, in addition to organic expansion, throughout its 20-year history…Read more
Grupo Unicomer Co. Ltd- Analysis & Recommendation- March 24, 2017
Company Background
Grupo Unicomer Co. Ltd. (GU) is a leading retailer of durable consumer goods such as home appliances, consumer electronics, furniture, motorcycles, mobile devices, computer equipment and optical wear in its Latin American and Caribbean markets. Grupo Unicomer is owned 50% by Infotech of the Caribbean and Central Corp. (which is 100% controlled by Milady Associates Ltd.) and 50% by Gromeron, SLU (which is 100% controlled by El Puerto de Liverpool S.A.B. de C.V.). The company’s current structure was achieved through four large-scale acquisitions, in addition to organic expansion, throughout its 17 year history. The Group runs an integrated business model which includes sales of goods, consumer finance, extended warranties, credit protection insurance and post-sale repair services. The Group has achieved a market share of 20% or…Read more
Jamaica Public Service Company Limited
Jamaica Public Service Company Limited - February 22 2019
Summary
Jamaica Public Service Company Limited (JPS) is seeking to raise up to $180M or the JMD equivalent or part thereof by means of a private placement of bonds (up to US$34M and up to J$10.68B) and the concurrent syndicated loans (up to US$66M). The facilities will be unsecured and will be used to finance the prepayment of the JPS 11.00% Senior Notes due 2021...Read More
JBS S.A.
JBS S.A. Brazil - October 2017
Summary
JBS S.A is the largest meat processing company (by sales volume) in the world. The company sells beef, chicken and pork as well as its bi-products. JBS is headquartered in Sao Paulo, Brazil but has approximately 150 industrial plants around the world. The company’s vast presence worldwide and its access to different markets ensure a healthy and diverse supply of foreign exchange from global sources. Consequently translation gains and diversity ensures a hedge against downturns in different markets. The company has a presence in the US, UK, France, Holland and Ireland just to mention a few.
Over the last two years however, JBS S.A. has had to deal with 1) the downturn in economic activity in Brazil; 2) the recent ban on beef exports from Brazil; and 3) allegations of corruption and penalties imposed by the authorities. In recent times debt levels...Read more
JBS Summary – February 2017
Company Overview
JBS S.A., formerly Friboi Ltda, is a Brazil-based company involved in the food processing sector. The Company is primarily engaged in animal slaughtering, the cold storage of beef, the production and sale of meat, meat by-products and canned food. JBS S.A. divides its food processing business into three segments: Cattle Meat, Pork Meat and Chicken Meat. In addition, the Company and its subsidiaries are involved in the leather tanning; aluminium cans production, industrial waste management and plastic resin manufacturing; bar soap and soap production for its own brands of cleaning and hygiene products; production of biodiesel, glycerine and fatty acid; retail sale of meat and barbecue related items; production and distribution of electric power, among others…Read more
Petrobras
Petrobras - March 22 2019
Summary
Petròleo Brasileiro S.A. – Petrobras has announced that it’s wholly owned subsidiary, Petrobras Global Finance (PGF), has commenced two new offerings. The first offering is; (A) a new series of US-dollar denominated, senior unsecured global notes and (B) an add-on to its senior unsecured 5.75% global notes due 2029. Petrobras has noted that it will unconditionally and irrevocably guarantee the notes....Read More
Petrotrin
Petrotrin Update - May 2019
Summary
JMMB has been tracking the financial stability of Petrotrin, the state owned refinery of Trinidad and Tobago (T&T). We believe the Government of Trinidad and Tobago (GOTT), is in a position to back full repayment of the company’s external obligation in the event that the international capital market is not receptive to rolling the debt. However, based on the information expressed below, JMMB is changing its outlook on the Petrotrin 2019 and 2022 bonds and recommend that clients reduce the proportion of the bonds in their portfolio to less than 5%....Read More
Petrotrin Update - August 2018
Summary
JMMB has been tracking the financial stability of Petrotrin, the state owned refinery of Trinidad and Tobago (T&T). We believe the Government of Trinidad and Tobago (GOTT), is in a position to back full repayment of the company’s external obligation in the event that the international capital market is not receptive to rolling the debt. However, based on the information expressed below, JMMB is changing its outlook on the Petrotrin 2019 and 2022 bonds and recommend that clients reduce the proportion of the bonds in their portfolio to less than 5%....Read More
TV Azteca
TV Azteca - Prepayment of The 7.625% Bond Due 2020 - October 2017
Summary
Further to our previous communication of August 31, 2017, TV Azteca has announced that they will be executing a full principal prepayment on its 2020 bond on October 30, 2017…Read more
TV Azteca - Prepayment of The 7.625% Bond Due 2020 - August 18 2017
Summary
Further to our previous communication of July 13, 2017, TV Azteca, on August 18 announced that they will be executing a partial principal prepayment on its 2020 bond…Read more
Tv Azteca – Prepayment of The 7.50% Bond Due 2018
Summary
Further to our previous communication of July 13, 2017, on July 14th TV Azteca executed a partial principal prepayment on its 2018 bond...Read more
TV Azteca – July 2017
Summary
The company reported an improvement in operating performance for 2016 after sales outgrew increases in total costs & expenses. However despite this increase net losses increased by 20% due to the booking of an impairment of the Colombian telecommunications investment. The result is that shareholder’s equity declined by 27%… Read more