Brazil’s state development bank, the BNDES, has agreed to lend BRL6.1bn to state electricity holding company Eletrobras to build the Angra 3 nuclear power plant. BNDES is funding 58.6% of the project cost. The plant will have installed capacity of 1,405MW once up and running by 2016. The BNDES says this is a third of the state of Rio’s consumption.
Yearly Archives: 2011
Posted inDaily Brief
Argentina Retires 80% in Brady Swap
Holders of about 80% of Argentina’s defaulted Brady debt representing about $267m equivalent in bonds have accepted a debt swap offer. Argentina was targeting $263m and EUR54m in Brady bonds, to manage external liabilities and cut the risk of legal claims from creditors. The republic retired 81.67% of the USD pars, 89.56% of the USD discounts, 69.27% of Deutsche mark (DM) pars, and 59.85% of the DM discounts through the deal that closed December 29. As a result, it will issue $28.95m in new 2033 discounts, $8.50m in 8.75% of 2017 globals and $86.33m in GDP linked securities. It will also pay $166.60m in cash. Argentina had $185m in 2023 fixed-rate USD bonds, $78m in floating rate 2023 USD bonds, EUR46m in 2023 fixed-rate euro-denominated bonds, and EUR8m in 2023 euro-denominated bonds outstanding, according to the prospectus. Bondholder Communications Group was exchange agent and Cleary Gottlieb is legal advisor, with Citi as fiscal agent. Argentina issued about $30bn in Brady Bonds and defaulted on them in 2001, along with the rest of its external debt. Argentina wants to clear the way for a new dollar bond issuance, in order to provide a benchmark for corporates. Wires reported last week that President Fernandez wants to borrow nearly $7.6bn in 2011 to fund infrastructure projects including railways, telecoms, hydro, nuclear and gas.
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Corpbanca Plans Capital Raise
Chile’s Corpbanca has called a January 27 shareholder meeting to propose a capital increase equivalent to $750m, or about 15% of the bank’s value. It plans to issue 40bn shares. The bank closed last week at CLP8.7. In September, it emerged that Corpbanca was in preliminary talks to sell a minority stake of no more than 10% to Banco do Brasil via a capital increase. Celfin estimates that as of July, Corpbanca had $1bn book value and annualized return on average assets of 20%.
Posted inDaily Brief
Chile Details Local Debt Plan
Chile’s finance ministry said last week it plans to issue this year approximately $6bn equivalent in domestic debt denominated in pesos and inflation-indexed UF units. Issuance will include up to CLP450bn in 7-year bonds and a maximum of CLP450bn in a retap of 10-year bonds. The sovereign also plans to issue up to UF20m in a tap of its 5-year UF bonds, up to UF18m by reopening the 10-year, up to UF17m from a tap of the 20-year and up to UF17m through reopening the 30-year, the ministry says. The bonds will be placed via monthly auctions set to start in January.
Posted inDaily Brief
Loan Sought for Mexican Power Plant
Financing for the Norte II combined-cycle power plant is being raised, according to a banker with knowledge of the transaction. SMBC and Credit Agricole are heard to be part of a $350m club deal, together with Kexim. The transaction is expected to close in February or March. Mexico’s CFE awarded the contract for the construction and operation of the Norte II combined-cycle power plant in August to a consortium formed by South Korean companies Korea Electric Power Corporation and Samsung Corporation, with Mexico’s Techint.
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Colombia Reported Raising Ecopetrol Sale
Colombia’s President Juan Manuel Santos has signed a decree approving the sale of an additional stake in the state-run oil firm Ecopetrol, according to Dow Jones. The decree allows the government to sell an extra 10% stake beyond the 20% privatization approved in 2006, in order to pay for road and infrastructure projects, it adds. Colombia last month proposed legislation that will allow it to float a 19.9% stake in Ecopetrol. The announcement by Colombia’s treasury department was an increase over previously announced plans to float a 9.9% stake in the company early next year. The government plans to keep 70%, it says in a statement on the proposed legislation. The value of the already announced 9.9% stake sale will likely be around COP14bn-COP15bn, the finance minister has estimated. Colombia is looking to raise extra cash after recent torrential rains and landslides caused an estimated $5.2bn in damage.
Posted inDaily Brief
GE Sells Mex Mortgages to Santander
GE Capital says it is selling its consumer mortgage business in Mexico, encompassing all operations and including a $2bn consumer mortgage portfolio, to Santander. The buyer says the deal will make Santander the second leading provider of mortgages in Mexico. “This sale is consistent with our strategy to exit non-strategic businesses that lack scale to help reduce GE Capital’s balance sheet while investing in core industrial and commercial finance platforms, including in Mexico,” says Mark Begor, president and CEO of GE Capital, restructuring operations. The agreement includes a payment of about MXP2bn plus financing costs, says Santander. The transaction, which requires regulatory approvals, is anticipated to close in H1 2011. GE has provided consumer mortgages in Mexico since 2002. GE adds that Mexico remains an important market. It is active in commercial lending in real estate, equipment and aircraft financing, transportation, structured and technology finance, and working capital. In October, GE announced $60m in investments in new Mexico projects.
Posted inDaily Brief
Gasco Raises Cash Via Polpaico Share Sale
Chilean natural-gas supplier Gasco has raised $116m equivalent by selling a 40% stake in local cement maker Polpaico. Gasco sold 7.31m shares at CLP7,500 each, CLP500 less than the asking price of CLP8,000. Some 25% was placed with retail, 30% with institutional investors and 45% to high net worth buyers. Banchile was the bookrunner. Proceeds will be used to fund Gasco’s development of projects in Chile and Colombia.
Posted inDaily Brief
PT Sells Brazil Online Stake
Portugal Telecom has sold its 28.78% stake in Universo Online, a Brazil-based internet service provider, to Joao Alves de Queiroz Filho, a Brazilian individual shareholder of Brazil’s Hypermarcas, says Dealogic. The deal value is $207.5m equivalent, says the data tracker. Banco Espiritu Santo advised.
Posted inDaily Brief
Petrobras Reported Pursuing Galp Stake
Petrobras is considering buying a 33.34% stake in Portuguese oil company Galp from Italy’s Eni for EUR4.7bn, according to a report in Portugal’s Diario Economico, which does not cite sources. Wires picking up the story say that Eni declines to comment on the report.