Category: Bonds

The IDB has approved a $120m loan to Argentina to finance road improvements in various provinces. The loan is part of a new $2.5bn IDB credit line, the bank says. The line is effective for 20 years and its loans are denominated in USD, with interest rates linked to Libor. The first loan has a grace period of 4.5 years and an amortization period of 25 years.

Panama-based multilateral lender Bladex has raised a $100m via a 2-year loan in Asia. The facility is co-led by China Development Dank and Mizuho and the margin is heard at less than 200bp. “This transaction is the first syndication placed in Asia by a Latin American financial institution, without mitigating the credit risk through the use of guarantees of any sort,” says Gregory Testerman, senior MD for treasury and capital markets for Bladex. “The loan enhances the diversification of Bladex’s financing sources, while further developing the bank’s presence in the Asian markets. Proceeds from this financing will be used to promote foreign trade, as well as the economic development of Latin America,” he adds. Bladex is in the process of raising a second in the loan market and seeking a better margin on the sequel.

Japan’s Mizuho Corporate Bank and Itau Unibanco have agreed to collaborate on corporate finance, including trade, ECA and project finance, as well as settlement. As part of the agreement, Mizuho, which has an office in Sao Paulo, will be able to use Itau’s office network. Itau has almost 5,000 branches in Brazil.

The IDB has approved a $750m loan to support rural areas in Mexico. This is the first transaction under a $2.5bn credit line, the multilateral says. The loan was approved for a 25-year period, with a 5-year grace period, and a Libor-based interest rate.

The IDB has approved a $27.8m loan for Colombia’s Pasto municipality to ensure its urban and rural residents have access to high-quality, efficient, and sustainable water and sewer services. The loan is for 25 years with a 6-year grace period and an interest rate based over Libor. The government of Colombia will provide $16.2m in counterpart funding, for a total program budget of $44m, the development bank says.

The IDB has approved a $100m credit line for Argentina, to help it finance its technological innovation program. This is the first of 3 operations totaling $750m, the multilateral says. The other 2 operations would come into effect in 2011 and 2013. The first credit line was approved for a 25-year period, with a 5-year grace period, and a Libor-based interest rate.

The IDB has approved a $70m loan for the Dominican Republic so it can enhance its conditional cash transfer program. This loan represents the first of a $300 million multiphase program and has a 25-year term, with an 18-month grace period, and a Libor-based interest rate.

Central American development bank Cabei is planning a 5-year bond issuance in the Costa Rican domestic market, treasurer Felix Magana tells LatinFinance. The issue should be for CRC35bn ($70m) and take place in the first week of September. Citi is managing the sale, which follows February and June placements in that market that totaled CRC26bn. Magana also says the bank will look to place again in Taiwan and Colombia, markets where Cabei has already issued this year, as it continues to diversify funding sources. The multilateral is also considering USD issuance, its first in that market since 2005.

S&P has revised CAF’s outlook to stable from negative after the lender’s shareholders approved a $2.5bn capital increase for 2010-2017. S&P also affirms CAF’s A+ rating. “Despite economic pressures in Latin America and higher risk embedded in CAF’s credit portfolio, this approved capital increase underscores CAF’s high franchise value as a countercyclical lender to the region,” says credit analyst Lisa Schineller. The capital increase is in addition to $1.5bn in already-scheduled paid-in capital contributions by Argentina, Brazil, Panama, Paraguay, and Uruguay, slated to be completed by 2014.