Category: Bonds

The IDB has approved a $45m loan to help finance the expansion of the Juan Santamaria airport in Costa Rica’s capital city of San Jose. Paulo Monteiro, finance manager at Brazil construction company Andrade Gutierrez, part of the consortium in charge of the expansion, says that the loan has a 15-year term and 1-year’s grace. Monteiro declines to state the price. He also tells LatinFinance that the consortium, to which Canada’s Airport Development Corporation and Houston Airport Services also belong, expects to get another loan for $55m from OPIC in early January. The terms for that loan will be the same as IDB’s, he says.

The IDB has approved $300m in financing to Argentina for the completion of a 1,220km 500kv power line, as well as to support provincial and regional transmission and sub-transmission works that are part of the country’s Norte Grande development and integration program. The new IDB financing will complement a $580m loan approved by the bank in 2006. The latest loan is for a 25-year term, with a 5-year grace period at a variable interest rate.

The IDB and the European Investment Bank (EIB) have reaffirmed their commitment to co-finance private-sector energy and transport projects in LatAm and the Caribbean. The new agreement renews commitments from both institutions that were set in a previous memorandum of understanding, signed in December 2004, which expires at end of 2009. Under the previous accord, the IDB and EIB have co-financed important projects for the region, including the expansion of the Panama Canal and Nicaragua’s power sector rehabilitation program. The total amount available for loans has not been defined, says an IDB spokeswoman.

CAF has been approved by Venezuelan regulators for a local bond of up to VEB1bn ($465m), according to the country’s official gazette. There are no specific plans for a local market issue, according to a CAF official. Despite addressing most of its 2009 financing needs with a $1bn 8.125% of 2019 dollar bond late May, the multilateral seeks to support the region’s domestic markets by issuing in local currency. CAF sold PES144m ($50m) in 6.5% of 2014 bonds in Peru’s local market in October and is working on a bond to sell in Uruguay.

The IDB has approved a $10m loan for Nicaragua so the country can assist small and medium companies increase exports and attract foreign investment. Half the loan will be for a 25-year term, with a 5.5-year grace period and a fixed rate. The other $5 million will have a 40-year term and grace period and an interest rate of 0.25%. The government of Nicaragua will provide $437,000 in local counterpart funds.

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.

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.

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.

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.