The Brazilian city of Fortaleza is getting a $59.4m IDB loan to finance integrated urban-upgrading for neighborhoods located alongside the main rivers. The loan matures in 25 years and has a grace and disbursement period of 5 years. The loan is denominated in USD and its interest rate is based on Libor. Local counterpart funds for the project total $39.60m. Nicaragua, meanwhile, is getting a $43.50m IDB credit line to improve its road system. The credit line consists of a $21.75m supplemental loan from the bank’s ordinary capital for a 30-year term, including a 5.5-year grace period, at a Libor-based interest rate, and a $21.75m credit from the concessional fund for special operations for a 40-year term, 40 years of grace, and 0.25% interest.
Category: Bonds
CAF Lends to Argentine SMEs
CAF has approved a $50m revolving credit line for state owned Banco de la Nacion so the latter can extend credit to small and medium-sized businesses. The facility is payable in 5 years and carries an interest rate pegged to Libor. The multilateral also announced a medium-term $30m loan for oil company Pan American Energy, but has not revealed more information about terms.
BNP Adds To DCM Staff
BNP Paribas has named Surya Bhattacharjee vice president for LatAm DCM, as the bank expands its presence in that market. He was hired from Morgan Stanley’s LatAm DCM team, and will report to Marcelo Delmar, BNP’s LatAm DCM head hired in September from UBS. Bhattacharjee was at Morgan Stanley for 5 years, and also previously worked at Deutsche Bank.
IDB Lends to Mexico Labor Market
The IDB has approved a $150m loan to Mexico to support job creation. The loan was requested by Mexico in response to the impact of the international financial crisis and the swine flu health crisis on the country’s economy. The loan has a 25-year term with a 3-year grace period, and its interest rate will be based on Libor. Funds will be disbursed over 3 years.
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Peru Refinery Gets Loan
Peru’s Refineria La Pampilla, majority owned by Spain’s Reposl YPF has signed a $100m 3-year loan with Bladex. Officials at YPF decline to disclose the interest rate until results are reported at the end of the month. The funds will be used to restructure commercial paper.
Cabei Seeks up to $100m Loan
CentAm multilateral Cabei is looking to raise up to $100m in a syndicated loan, say bankers close to the deal. The institution is initially targeting a $50m raise, but may look to upsize if it detects sufficient demand. The loan is being offered at Libor plus 125bp for a 2-year tenor, which has the option to be extended by an additional year for an additional fee. There is an up-front fee of 37.5bp. At the end of 2 years, participants can sign on for an additional year and receive another 37.5bp, in addition to the spread. Tickets of around $15m are being shopped to lenders, according to a banker involved. Standard Chartered is leading.
DomRep Gets IDB Support
The IDB has approved a $500m 5-year loan for the Dominican Republic to support social programs and streamline energy subsidies and improve financial management of power companies. The loan will be disbursed in 18 months. It has a grace period of 3 years and its interest rate is based on Libor.
CS Settles Brazil Insider Trading Suit
Credit Suisse International, which controls the bank’s Brazil units, will pay BRL19.2m to settle an insider trading lawsuit in Brazil, according to the CVM, Brazil’s regulator which brought the complaint. The case relates to insider trading allegations against the firm that are the result of a near 3-year probe into irregular trading of Embraer preferred and ordinary shares. The CVM concludes that individuals at local brokerage Credit Suisse DTVM traded on information obtained from a proposal by its banking unit in the second half of 2005. Trading on a plan to reorganize Embraer’s shareholder structure resulted in high turnover of the company stock between December 2005 and January 2006, says the CVM. The report names Mauro Bergstein, head of the brokerage unit, as a leading individual involved in the trading activity. Two individuals tied to Embraer named in the suit – Alexandre Magalhaes and Ricardo Araujo – were absolved of accusations, says the CVM.