Category: Bonds

Chilean miner Antofagasta and Japan’s Marubeni are seeking to raise roughly $2bn in ECA financing through JBIC, according to a banker close to the transaction. The funds, which could reach tenors of up to 10 years depending on the needs of the mining projects, would be destined for copper exploration. The companies are heard to be in discussions to establish their exact funding needs for a joint project.

The IDB has approved a $25m loan to venture capital firm IGNIA Partners, the first time it has lent to such an entity. The Mexican firm invests in projects serving low-income individuals with basic housing, health care and other needs, and aims to invest up to $100m in eight to 12 growth companies in LatAm and the Caribbean. In addition to the loan, the IDB’s Multilateral Investment Fund will be considering a $5m equity stake in the IGNIA Fund I. The Fund closed last week at $20.6m, with a second close expected this summer as it targets $50m-$75m.

Brazilian steelmaker Usiminas is looking to raise $400m in new financing using an IDB A/B structure, according to a banker away from the transaction. The multilateral is heard to be providing the company with a $50m 9-year A loan. For the $350m syndicated, or B, portion the company is targeting tenors of 7 years. An RFP is out to banks for a mandate to lead the syndication. Proceeds are being used to increase Usiminas’ energy efficiency. In February, Usiminas raised $1.3bn in a two-part syndicated loan via HSBC, with 5 and 7 year tenors on a trade facility paying Libor plus 110bp and 135bp respectively, and a 2-year liquidity facility at Libor plus 75bp.

CAF is eyeing the issue of $500m-equivalant in any of several different markets, including Yen and Euros, to diversify its funding base. “We continue to monitor the US situation,” CFO Hugo Sarmiento tells LatinFinance. “If we see we can do another dollar issue, then we’ll consider that also.” The lender did $250m in 10-year bonds in January and $75m-equivalent in MXP. Sarmiento mentions the local markets of Colombia, Peru, Chile and Uruguay as other possibilities. “Diversifying our investor base is the most important thing,” he says. Separately, Cabei (A2/A) wants $150m+ in a 2-10 year and Bladex is mulling $200m+ in a 2-7 year, according to bankers. Bladex is also preparing a $50m equivalent issue in Peruvian soles and registering a $300m equivalent MXP shelf.

Supranational lender Bladex expects to this week pick banks to arrange a $150m loan to refinance an August maturity. The facility should have a tenor of 2 years, says Milciades Denis, the bank’s head of treasury. Growth in deposits has given the bank extra funds to help refinance the original $235m facility. Bladex is also preparing a $50m equivalent issue in Peruvian soles, the second from a $300m shelf. The first was a $40m equivalent 7-year pricing close to the sovereign and Denis anticipates a similar tenor for the sequel, which will likely come in the next few months. Liquidity is strong, and there is healthy participation from the pension fund sector, Denis explains, in what is the bank’s second largest market after Brazil. Bladex is also eyeing an MXP issue from a new shelf, likely also to be for $300m equivalent. “We are speaking with several houses to see what we can do there,” Denis tells LatinFinance. The bank was upgraded to Baa2 in December by Moody’s. Denis was speaking on the sidelines of the fifth annual LatinFinance Latin American Borrowers & Investors Forum in Boston.