With a Greece rescue package agreed and a string of positive days in equity markets, there is talk of at least one postponed DCM issuer reviving its plans. Odebrecht is heard keeping the channels open for a possible launch if market conditions remain stable, according to investors. The Brazilian builder is looking for $200m perpetual step-up NC5 bond, the proceeds of which would be used to replace its existing 9.625% perp. Credit Suisse and Itau are managing the sale. The issuer was looking for a mid-6% yield last week when global market turmoil postponed the deal. Also put off last week were a planned $400m 2020 from Mexican building materials conglomerate Elementia and a 2020 subordinated bond from Brazil’s Banco Cruzeiro do Sul.
Category: Bonds
Posted inDaily Brief
Venezuela Gets IDB Loan
The IDB has approved a $140m loan for Venezuela to be used to improve the management of solid waste. The IDB loan has a 25-year term including a grace period of 5 years, and a variable interest rate based on the Libor. Venezuela will provide $60m in local counterpart funds.
Posted inDaily Brief
Ceara Sees IDB Support
The IDB has approved a $150m loan for the Brazilian state of Ceara to support the development of new tourism destinations. The loan matures in 25 years, with an amortization and disbursement period of 5 years. The interest rate is based on the Libor and Ceara state will provide counterpart funds of $100m.
Posted inDaily Brief
CAF Breaks Japanese Retail Ice
CAF has raised $74m from what it calls the first ever retail-only placement in the Japanese market by a LatAm issuer. The 2014 bond sold in the so-called Uridashi market priced at 99.98 with a 3.11% coupon to yield 3.12%. Officials at the issuer and lead bank note that there have been mixed institutional-retail offers in Japan by Latin issuers, but this is the first purely retail. The latter is a more difficult market typically dominated by AAA Japanese credits. CAF is rated A1/A+. Daiwa Securities managed the sale. CAF has been issuing in Japan for more than a decade, most recently in February 2009 with a JPY10bn ($108m) 3.4% of 2019 private placement.
Posted inDaily Brief
Single-Digit Growth Seen for Remittances
The IDB says remittances to LatAm and the Caribbean are showing signs of stabilizing and could register a single-digit increase this year, following a 15% drop suffered in 2009. Last year, LatAm and the Caribbean received some $58.8bn in remittances, marking the first annual decline since the IDB’s Multilateral Investment Fund started to track such flows in 2000, the bank says.
Posted inDaily Brief
BNDES Creates Eximbank
Brazil’s BNDES plans to place its export credit business in a new unit called Exim Brasil to centralize, simplify and increase its offerings to the country’s exporters. It will be backed by a new BRL2bn Fundo Garantidor de Comercio Exterior guarantee fund. BNDES claims a BRL13bn existing portfolio in the area of trade finance, and will have as a main focus extending services to businesses that are finding it difficult to obtain financing. The new bank will be based in Rio.
Posted inDaily Brief
Braskem Squeaks Through DCM Window
Braskem raised $400m in a bond sale Friday, alongside Pan American energy’s $500m offer, as the region’s last DCM deals squeaked through the end of a volatile week. The pipeline is significantly thinner this week, and EM is braced for more spillover from choppy US markets and European sovereign woes. The Brazilian petrochemicals producer stuck to its guns, pricing the 2020 at 7%, in line with guidance and early whispers, though raising less then initially targeted. The level turned off many on the buyside who found it too tight for a BB+/Ba1 credit, especially in last week’s jittery market. The $900m book meant a $400m size, despite expectations of $500m-$750m. Braskem priced at par with a 7% coupon. The bond was heard trading around reoffer in the gray Friday afternoon. Bankers on the deal say the issuer’s priority was the 7% level, regardless of the size, as it is not desperate for funds. The majority of proceeds were to be used to refinance indebtedness at Quattor Participacoes, which Braskem agreed to buy in January along with other assets from Unipar for BRL700m, plus the assumption of up to BRL170m in debt. Banco do Brasil, Bradesco, HSBC and Santander managed the sale, done through the Braskem Finance Cayman Islands vehicle.
Posted inMagazine
Dominican Republic Fixed Income Reheats
The Dominican Republic recently allowed local pension funds to invest in government paper. However, there are still impediments to deployment of more cash to corporates.
Posted inDaily Brief
CAF Signs Brazil Loan
CAF has approved a $100m loan for the northeastern Brazilian state of Paraiba. Proceeds will be used to improve about 1,000km of roads. The total cost of the road revamping project is $154m, of which Paraiba will contribute $54m. CAF does not provide terms on the facility.
Posted inDaily Brief
Bladex on Non-Deal Roadshow
Panama-based multilateral lender Bladex will meet with investors next week in the US and Europe, according to investors. The trip is scheduled from Tuesday to Friday. Credit Suisse and Bank of America Merrill Lynch are managing.