A September 25 Daily Brief entitled “Arcos Clinches Lean Coupon” incorrectly identifies the leverage of the company. The company’s pro-forma net debt to Ebitda in the 12 months through Q2 2009, including debt from the new bond, is 1.6x, according to a company official. The net debt to Ebitda ratio of 2.5x attributed to Barclays Capital is the incurrence ratio for the issue, not the company.
Category: Bonds
Posted inDaily Brief
IDB Aims to Push China-LatAm Beyond Commods
The IDB is aiming to channel Chinese investment into vehicles that will support LatAm’s development beyond commodity exports. The Agricultural Bank of China is set to officially join a $1bn trade finance program. “We’ve begun signing up [Chinese] banks for our Trade Finance Faclitation Program,” says Steven Puig, a vice president at the IDB tells LatinFinance, noting that the Bank of China is already on board. It is actively seeking funds from others. This program and others including a $150m equity fund investing in SMEs – receiving Chinese funds via its participation as an Inter-American Investment Corporation member – are a way to direct investment into the bottom of the pyramid as well as the top. “We’re hoping this will spur trade in general and not just the commodity-related trade,” he says.
Posted inDaily Brief
Gol Taxis for Equity Takeoff
Brazilian airline Gol plans to sell 51.8m shares on October 8, according to a preliminary prospectus filed with the CVM. The company originally stated its intentions to raise equity in late August. It plans to sell 34.6m new shares, half of which will be common and the rest preferred, as well as 17.26m secondary units. Using an average price of BRL18.8m, the company estimates gross proceeds from the deal will total BRL974m. Gol has hired Itau BBA as a lead and BofA-Merrill as joint lead and so-called stabilizing agent. Morgan Stanley, Bradesco BBI and Banco do Brasil are also slated as joint leads.
Posted inDaily Brief
BNP Beefs Up LatAm
BNP Paribas has appointed veteran banker Marcelo Delmar as head of LatAm DCM based in New York, reporting to head of LatAm fixed income Carlos Calabresi and North America DCM chief Jim Turner. Delmar, who started working at the French bank Monday, was previously head of LatAm DCM at UBS, which lost all of its experienced LatAm debt bankers over the last 12 months. The Swiss bank downsized the debt team in line with anticipated shrinkage in issuance and its recent sale of the Pactual Brazil unit to BTG left its commitment to the region in question. It is heard looking to replace Delmar. BNP has also hired Edgar Lievano as vice president in the fixed income LatAm derivative sales group. He was previously in a similar role at Bank of America-Merrill Lynch in New York covering LatAm corporates. He reports to Garry Popofsky, head of FX and EM sales. Separately, BNP has appointed Eddie Patury and Fabiano Tomita for fixed income institutional sales based in Sao Paulo. Patury was previously at Citi, while Tomita was head of international fixed income sales for Bradesco BBI. Both will report to Luis Berlfein, head of fixed income origination and distribution for Brazil. The moves follow news that Lodewijk Spoorenberg, head of Americas for energy, commodities, export and project finance at BNP Paribas, will relocate back to Europe for a senior role in corporate and investment banking (CIB). Louis Bazire is now head of CIB LatAm, excluding Mexico which will be under the responsibility of Everett Schenk, head of CIB for BNP Paribas North America.
Posted inDaily Brief
Cyrela Joins Crowded Equity Field
Brazilian real estate developer Cyrela has gotten board approval for a sale of 51.5m shares, equivalent to an estimated BRL771m, it says in a statement filed with the CVM. The move confirms the rumblings, reported earlier this week by LatinFinance, that the company was planning to tap ECM. It is heard to have hired Itau BBA and Credit Suisse to lead the transaction. While Cyrela is among the largest Brazilian homebuilders by volume and market cap, it will have to make a strong case to investors who, by the time it issues stock, will have been shown as many as 5 other equity deals from Brazilian homebuilders, including Multiplan, which is scheduled to price Thursday, PDG Realty, Brookfield, Rossi and Direcional.
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Cabei Makes Rare Dollar Bond Outing
Cabei has sold $500m in 2014 bonds, upsizing from the $300m first announced. The Central American development bank – more accustomed to funding in fringe currencies like Costa Rican Colones and Taiwanese dollars – priced at par with a 5.375% coupon to yield US Treasuries plus 300bp. Bankers managing the transaction declined to disclose the book size on Cabei’s first issue in USD since 2005. Barclays and Citi managed the sale, rated A2/A minus. Bank officials have indicated that Cabei plans to issue in Colombian pesos and Taiwanese dollars before year-end.
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Argentina gets IDB Loan for Roads
The IDB has approved a $120m loan to Argentina to finance road improvements in various provinces. The loan is part of a new $2.5bn IDB credit line, the bank says. The line is effective for 20 years and its loans are denominated in USD, with interest rates linked to Libor. The first loan has a grace period of 4.5 years and an amortization period of 25 years.
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Bladex Gets 2-Year Money in Asia
Panama-based multilateral lender Bladex has raised a $100m via a 2-year loan in Asia. The facility is co-led by China Development Dank and Mizuho and the margin is heard at less than 200bp. “This transaction is the first syndication placed in Asia by a Latin American financial institution, without mitigating the credit risk through the use of guarantees of any sort,” says Gregory Testerman, senior MD for treasury and capital markets for Bladex. “The loan enhances the diversification of Bladex’s financing sources, while further developing the bank’s presence in the Asian markets. Proceeds from this financing will be used to promote foreign trade, as well as the economic development of Latin America,” he adds. Bladex is in the process of raising a second in the loan market and seeking a better margin on the sequel.
Posted inDaily Brief
Mizuho Teams Up With Itau-Unibanco
Japan’s Mizuho Corporate Bank and Itau Unibanco have agreed to collaborate on corporate finance, including trade, ECA and project finance, as well as settlement. As part of the agreement, Mizuho, which has an office in Sao Paulo, will be able to use Itau’s office network. Itau has almost 5,000 branches in Brazil.
Posted inDaily Brief
Mexico Agro Gets Multilateral Support
The IDB has approved a $750m loan to support rural areas in Mexico. This is the first transaction under a $2.5bn credit line, the multilateral says. The loan was approved for a 25-year period, with a 5-year grace period, and a Libor-based interest rate.