Demand for Grupo de Inversiones Suramericana’s bonds surged to COP1.3trn ($657.6m) Wednesday, according to a local DCM banker close to the transaction. The holding company sold COP250bn ($127m) as planned in 3 tranches. The 10-year notes, of which the banker says COP54.00bn was sold, pay IPC plus 4.40%; the 20-year, of which COP98.00bn was sold, pay IPC plus 5.90% and the 40-year notes, of which COP97.50bn was sold, pay IPC plus 6.98%. The banker says Suramericana is the first Colombian company to issue 40-year bonds. The longest tenor had been for notes issued by the government, which had a tenor of 33 years, he adds. Proceeds will be used to finance the company’s acquisition of its insurance subsidiary’s investment portfolio. Fitch has an AAA national rating on the issue. Bancolombia managed the sale.
Category: Bonds
IDB Extends Loan to Curitiba
The IDB has approved a $50m loan to the Brazilian city of Curitiba so it may improve conditions in poor neighborhood and improve the public transit system, the bank says. The loan has an amortization period of 25 years, a 5-year grace period and a disbursement period of 5 years.
Cabei Closes with Asian Banks
CentAm multilateral lender Cabei has raised a $75m 2-year syndicated loan, largely with Asian borrowers. The Standard Chartered-led deal includes 6 Taiwanese banks plus Mizuho and BAC Florida, say bankers on it, who decline to name the Asian lenders. The facility, which includes a put after year 1, pays Libor plus 125bp per year. An up-front fee of 37.5bp was paid upon funding, and lenders who agree to the second year will receive an additional 37.5bp. Cabei launched the $50m deal last month and was targeting up to $100m depending on demand.
Brazil’s SMEs get IDB Support
The IDB has approved a first loan of $1bn out of a $3bn credit line for Brazil to help boost lending to micro, small and medium enterprises in the country. The credit line will include matching funds from BNDES, the IDB says. The $1bn loan, first in a series of three under the credit line, is for a 20-year term, including a four-year grace period, at a Libor-based interest rate.
IDB Deploys Loans to Peru, Bolivia
The IDB has approved a $50.0m loan to Peru to help finance reforms in several of the country’s anti-poverty programs. The financing package, the first in a series of three program policy-based loans, is for a 20-year term with a 5-year grace period and a variable Libor-based interest rate. The bank has also approved a $25.0m credit line to Bolivia to finance improvements in traffic circulation in two segments of the country’s national road network. The financing consists of a $17.5m loan for a 30-year term and a 6-year grace period, and a $7.5m credit for a 40-year term, with a 1-year grace period, and 0.25% interest.
CAF Readies $1bn World Cup Fund
CAF is teeing up a $1bn fund to help Brazilian subnational entities, such as states and municipalities, finance projects linked to the 2014 World Cup, to be held in the country. Moira Paz-Estenssoro, CAF’s Brazil representative, tells LatinFinance the funds will be directed at improving the touristic capacity of Brazil’s hosting cities, including security and critical urban developments, as well as supporting and financing PPPs related to the Cup. Once the subnational governments can obtain a guarantee for their respective projects from the federal government, CAF will provide financing from the fund that may carry tenors of up to 18 years with grace periods of 4 years, says Paz-Estenssoro, speaking at a Project Finance – Euromoney conference Thursday in Sao Paulo.
Mexico Energy SMEs Gets IDB Support
The IDB is disbursing a $301m loan to Mexico as part of a $1.2bn credit line. The bank says the funds will help Mexico support small and medium enterprises in the oil sector. The loan is for a 25-year term, including a 5-year grace period, and carries a variable interest rate based on Libor.
Cayman Islands Set to Price
The Cayman Islands is set to follow the Bahamas into international DCM waters, circulating 6.000%-6.125% yield guidance on a new 10-year bond, expected to price today. The Aa3-rated issuer is expecting to sell $312m of the bonds to repay existing debt. HSBC is managing the sale.
Ceara Bags IDB Funds
The IDB has approved a $45m loan to help improve living conditions and social integration of children, adolescents, and young people at social risk and their families in the Brazilian state of Ceara. The funds will also contribute to advance municipal and state management capacity, particularly in the social field. The loan is for a 25-year term, with a 5-year grace period, and carries a variable Libor-based interest rate. The total cost of the project is $64.3m, with $19.3m to be provided in local counterpart funds. Separately, the IFC has approved a $25m 5-year loan to Brazilian bank Bicbanco to help it extend credit to small and medium-sized health and education providers. The financing is an interbank CD with a 2-year grace period, the IFC says.
Bladex Closing Trade Finance Line
Bladex is heard closing a $113m 2-year loan through Mizuho paying 175bp all in. The deal was syndicated to a group of 10 banks in China and Taiwan, according to a banker on it. Proceeds are for trade finance. The deal is a follow up to a deal closed in September for the Panama-based multilateral lender. Bladex raised $100m via a 2-year loan co-led by China Development Dank and Mizuho at a margin less than 200bp.