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.
Category: Bonds
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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.
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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.
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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.
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EM Fixed Income Funds Rebound
EM bond funds saw inflows of $505m in the week ended November 11, EPFR Global data shows. The week before the funds saw outflows of only $1m. According to EPFR, were evenly divided between funds investing in hard currency debt and those focused on local currency bonds. Lipper data shows that performance was also positive. EM debt funds were up 1.20% on the week ended November 12 and 31.95% year-to-date. Meanwhile, global income funds were up 0.56% for the week and 15.43% ytd and international income funds gained 0.63% for the week and 12.79% ytd.
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Falabella Prices COP Deal
Chilean retailer Falabella sold COP100bn ($51m) in a 3-tranche bond yesterday, with demand exceeding COP124bn, according to Laura Ramirez, DCM director at Correval, one of the banks managing the sale. The first tranche, due in 2 years, pays a coupon of 1.65% over DTF. The second, due in 3 years pays 2.00% over DTF. The third tranche, due in 2 years, pays a fixed 6.30%.The issue is rated AAA by Fitch and proceeds will go to repay some existing debt and finance capex, adds Ramirez. IMTrust structured the notes, and in addition to Correval, Bancolombia, Corredores Asociados, Interbolsa and Proyectar handled the sale. Separately, Chilean holding company Dersa has raised CLP120bn ($236m) through the sale of a 2.1% stake of Falabella in Chile’s local markets. Dersa, Falabella’s largest shareholder, reduces its ownership in the company to 20.2% with the sale. Demand reached CLP300bn, according to the bolsa, with foreign investors accounting for 45% of the purchase and local pension funds buying 34%. Falabella shares closed at CLP2,496.
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Marfrig Prints Beefy Follow-On
Brazil’s Marfrig priced late Wednesday an equity follow-on worth BRL1.5bn. The 69.9m share offering was upsized by 15%, or 9.1m units, according to the company’s filing with the CVM. The shares were priced at BRL19.00, a 3% discount to Wednesday’s close of BRL19.60. Marfrig’s board approved the sale September 22, when shares closed at BRL17.94. It rose 9.3% through the final session before pricing. Proceeds are being used to finance Marfrig’s $900m acquisition of Seara Alimentos, which was announced mid-September. The deal was led by Bradesco BBI, with Banco do Brasil, Credit Suisse, Itau BBA and Santander as joint leads.
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DomRep Gets IDB Storm Loan
The IDB has approved a $100m loan for the Dominican Republic so the country can cover the costs that arise during earthquakes and hurricanes. The IDB says the facility is the first contingent loan for natural disasters that it has approved for LatAm or the Caribbean. In addition to this facility, the IDB has worked with the Dominican government to help it establish a national reserve fund for emergencies and to develop a catastrophic insurance facility. The loan is for a 20-year term, including a 5-year grace period and a Libor-based interest rate. Separately, the IMF this week approved a $1.7bn equivalent 28-month stand-by arrangement for the Dominican Republic to support its strategy to cope with the adverse effects of the global economic environment.
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Falabella Issuing COP Bonds
Chilean retailer Falabella is selling COP100bn ($51m) in bonds today via its first ever issue in the Colombian market. Laura Ramirez, DCM director at Correval, one of the banks handling the sale, tells LatinFinance that the bonds will be divided into 3 series. One will pay a fixed 6.5% and be due in 2 years, another– also for 2 years – will pay 170bp over DTF, and the third series, due in 3 years, will pay 200bp over DTF. The issue is rated AAA by Fitch and proceeds will go to substitute some existing debt and to finance capex, adds Ramirez. IMTrust structured the notes, and in addition to Correval, Bancolombia, Corredores Asociados, Interbolsa and Proyectar are handling the sale.
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CAF Lends to Argentine SMEs
CAF has approved a $50m revolving credit line for state owned Banco de la Nacion so the latter can extend credit to small and medium-sized businesses. The facility is payable in 5 years and carries an interest rate pegged to Libor. The multilateral also announced a medium-term $30m loan for oil company Pan American Energy, but has not revealed more information about terms.