Multilateral CAF has approved $2.2bn worth of financing to Argentina, Colombia, Ecuador, Peru, Uruguay and Venezuela. Peru is getting two loans totaling $600m. One, worth $300m, will finance the Lima Electric Train and the other half will be used to deal with emergencies caused by natural phenomena. Venezuela is also getting $600m to finance its Termozulia thermoelectric plant. Colombia’s Treasury Ministry will receive $400m so it may continue to decentralize operations. Meanwhile, a $275m loan goes to improve water and sewage systems in Argentina’s capital. And Ecuador will get $250m to optimize its electricity infrastructure. Lastly, Uruguay will receive $100m to develop its road infrastructure. Terms of the loans were not disclosed and CAF did not return calls.
Category: Bonds
Deutsche Poaches Merrill DCM Banker
An August 14 Daily Brief “Deutsche Poaches Merrill DCM Banker” incorrectly describes the nature of the move. It should read “Deutsche Hires Merrill DCM Banker.”
IDB Feeds Mexico Mortgage Support
The IDB has approved a $500m loan for Mexico to support its mortgage industry. This is the second installment of a $2.5bn 10-year credit line, the bank says. The loan will enable Sociedad Hipotecaria Federal (SHF) to continue offering lines of credit to Sofoles and Sofomes, and maintain liquidity in secondary markets through the acquisition of bonds backed by mortgages. The loan is for a 25-year term, with a 5-year grace period, at an adjustable interest rate over Libor.
Deutsche Poaches Merrill DCM Banker
Deutsche Bank has hired Francisco Hernandez, a director in charge of Bank of America Merrill Lynch’s Mexico DCM group. Hernandez, expected to start next week, will be assuming a similar role at Deutsche, heading up its Mexico DCM effort, also as a director. Hernandez follows a similar move by Alberto Ardura, Deutsche’s head of LatAm DCM and client coverage, who joined from Merrill in May. Ardura himself was brought over by Karan Madan, a former senior Merrill executive now in charge of Deutsche’s EM sales, trading, coverage, and structured products. In Mexico, Tito Vidauri remains CEO of Deutsche’s Mexico office. The moves come as Daniel Sontag, head of Merrill Lynch’s brokerage unit, is stepping down after BofA’s hired of Sallie Krawcheck to head global wealth and investment banking, above Sontag. Executives close to BofA Merrill insiders say they expect more departures among the firm’s brokerage ranks.
LatAm Remittances Drop 11%
The IDB forecasts that LatAm and the Caribbean will see remittances drop by 11% in 2009 to about $62bn. Remittances from the US – where unemployment among Latin Americans is higher than among the general population – are also expected to decline by 11% to about $42.3bn this year. Remittances from Europe, another major destination for Latin American migrants, are expected to drop by 14% to about $9bn. Remittances from other parts of the world will slide about 4.5% to $10.4bn.
Suzano Receives BNDES Line
Suzano Papel e Celulose, Brazil’s second largest paper and pulp company, has been granted a BRL705m credit line from BNDES, it says. Tenor and pricing will depend on the use of proceeds when the company chooses to draw on the line, says a BNDES spokesman. Suzano plans to use proceeds to finance investments in production. BNDES declined to disclose details of the facility.
Brazil State Gets $50m Road Loan
The IDB has extended a public, guaranteed $50m loan to the state of Santa Catarina to improve its state highways. The facility has a 25-year life and 3-year grace period, paying a Libor-based spread. In the first half of 2009, the spread over Libor for the project was equal to 30bp, implying an annualized rate of 60bp over Libor, though that spread is expected to be reset to a new level for the second half, say people familiar with the transaction. The financing covers 70% of the project costs. The funds are being used to repair, upgrade and increase safety of around 50km of roads linking the cities of Lindoia and Irani, and Sao Domingos and Bom Jesus.
Mexico Gets IDB Financing for Education
The IDB has approved a $100m loan to Mexico for the second phase of a program to improve technical education at the secondary and post-secondary levels. The IDB approved $50m for the first phase in September 2004. The IDB loan is for a 25-year term, with a grace period of 5 years and a Libor-based variable interest rate.
Ceara Gets IDB Money to Fix Roads
Brazil’s state of Ceara is getting a $159m loan from the IDB to improve more than 1,000 kms of roads. The USD denominated loan will mature in 25 years and has a 5-year grace period. The interest rate will be based on Libor. The IDB says it will finance 62% of the total cost of the project while Ceara will finance the remainder.
CCR, Coelce Close BRL Bonds
Brazilian regulators have given final approval to a BRL598m debenture issue from Companhia de Concessoes Rodoviarias and to a BRL245m issue from power distributor Coelce, according to the CVM. Toll-road operator CCR sold a BRL448m 2012 series at 112% of DI, and a BRL150m 2014 tranche paying the ICPA inflation index plus 7.5%. CCR plans to pay off outstanding debentures with proceeds. UBS is managed the sale, rated A+ on a national scale. Coelce offered BRL90.5m in 2011 debentures at DI plus 0.95%, and BRL154.5m in 2014s paying a fixed 7.5%. It plans to use proceeds from the AA deal for the early repayment of BRL245m in 1-year notes paying DI plus 1.6% sold in May. Itau led the Coelce transaction.