The IDB has approved a $162.5m loan for the Brazilian state of Sao Paulo to finance conservation and restoration of the 315,000-hectare Serra do Mar State Park, the Jureia-Itatins Ecological Station and marine and coastal conservation units. The 25-year loan, denominated in USD, has 4-year grace and disbursement periods and a Libor-based interest rate. The IDB loan will cover 34.5% of the cost of the project while the state will cover the remainder, the bank says.
Category: Bonds
Posted inDaily Brief
Venezuela Bags 2 CAF Loans
The CAF has approved 2 loans for Venezuela’s Zulia state, one for $126m and the other for $261m, to be used to strengthen the country’s electricity infrastructure. The $126m loan will be used specifically to finance the construction of 2 substations and the expansion of another substation. It will also finance the modernization of transmission lines for these substations. The $261m facility will finance construction of Termozulia III. The financing is part of a $600m shelf approved by CAF in 2009.
Posted inDaily Brief
Issuers Prep Mexican DCM
Mexican silver miner Penoles and Central American development bank Cabei are expected to price bond transactions today in Mexico’s domestic market. Penoles is planning to issue $600m via BBVA, Santander and HSBC. Looking for liabilities that match cashflows, the company pulled an up to MXP7bn issue in June because it failed to find an acceptable FX derivative structure to swap the issue back into dollars. Proceeds from the deal, rated Aa1 on a national scale, will go towards refinancing debt and financing investment. Penoles is a leading producer of refined silver, claiming an approximately 11% market share globally, and also lead and zinc. Cabei is expected to issue between MXP500m-MXP750m via Banamex, says a lead banker. The triple A bonds will have a maturity of 10 years and pay a spread over TIIE. Cabei, seeking to grow its lending portfolio to support infrastructure projects, last came to the Mexican domestic market in 2008. It has 9 outstanding bonds in the market, worth a total $400m, with maturities of 2-12 years. Cabei has done 50%-60% of its funding for 2010, having pre-funded $500m in 2009.
Posted inMagazine
Central Bank Ranking: Close Calls
Mexico edges out Brazil and Chile for this year’s prize among the region’s central banks. The trio is not without criticism in what has been a tricky 12 months.
Posted inMagazine
Venezuela Investors Await Change
While some still make money under the radar in Venezuela, most foreign investors monitor politics for signs of an opportunity.
Posted inMagazine
Argentina Corporate Debt: Reapertura?
Fresh borrowing by Argentine corporates and sub-sovereigns dovetails with hopes of the sovereign regaining access. A corporate debt boom is unlikely.
Posted inMagazine
Colombia Pension Funds Get Equity Boost
Colombian pension funds are set to implement a multi-fund structure that allows savers to calibrate investment by risk appetite. The move should boost AFPs’ investment in equity.
Posted inMagazine
Banco do Brasil Flexes Muscle
Latin America’s biggest bank, Banco do Brasil, is riding high with new lines of international and capital markets business. However, elections may be a spanner in the works.
Posted inMagazine
TRINIDAD & TOBAGO: Energy Dependent
Trinidad & Tobago’s economy is dependent on oil and gas. An expected rise in energy prices could help erode the deficit, cutting international funding needs.
Posted inMagazine
Temasek Talks Mexico Potential
As relations between Asia and LatAm strengthen, Temasek sees itself well positioned to ride Mexico’s recovery. The sovereign wealth fund is teaming up with entrepreneurs.