Category: Bonds

Corporación Andina de Fomento (CAF) has reopened its 5.75% of 2017 bond for $250 million to take the total size to $500 million. The price was 99.503 to yield 4.796%, or 102bp over US Treasuries. It was rated A1/A/A+. Merrill Lynch was the sole lead on the tap of the bond that was first issued in September 2006. The deal, due January 12, 2007, is the first of the year from CAF, which continues a program of diversifying its funding and reducing cost.

The Inter-American Development Bank (IDB) was the primary source of multilateral lending for Latin America and the Caribbean in 2006, according to the Bank’s end-of-year summary statement. President Luis Alberto Moreno said the Bank approved 112 projects during the course of the year for close to $6.4 billion and made almost $6.5 billion in disbursements, 18% more than last year. Approvals included 76 loans for public-sector investment projects, totaling close to $3.6 billion, 17 policy-based loans for close to $1.8 billion and 19 operations without sovereign guarantees for $904 million, said the Bank. Looking to the future, Moreno stressed the need for the Bank to adapt and change to remain relevant and “make a difference in the long term”.

The Inter-American Development Bank (IDB) has approved up to $80 million for a revolving mortgage-backed credit facility for Securitizadora Security GMAC-RFC, a Chilean securitization company specialized in the securitization of residential mortgages and housing leasing contracts in the mid-to-low income segment. “The facility will help to further develop the mortgage market in Chile by increasing the availability of housing finance, in particular for housing units for the mid-to-low income segment; expanding the securitization market; and helping to meet increasing demand for long-term fixed income securities from local institutional investors”, said Edson Mori, IDB project team leader.

The Inter-American Development Bank (IDB) has signed a $30 million subordinated loan to BBVA Banco Continental, in Peru. The loan constitutes the second component of a long-term financing facility by the IDB for Banco Continental to provide comprehensive support for mortgage origination and asset growth. The first portion, a $100 million senior A/B loan was signed December 8.

CAF, the Caracas-based Andean multilateral, is planning to issue up to $1 billion in bonds next year. The bonds will be issued in Latin America and in the international markets, with approximately 20% issued in local currency and the rest in US dollars. So far this year, CAF sold $809 million worth of bonds, with local currency issues in Venezuela and Peru. This year, the multilateral lent more money than ever, approving loans of $5.65 billion – 19% more than in 2005 – according to CAF president Enrique García.

The Inter-American Development Bank (IDB) has approved a $120 million long-term financing facility to Peru’s second-largest commercial bank – BBVA Banco Continental – to help support the Bank’s plans for mortgage origination. The financing will take the form of senior and subordinated debt and will “better match the maturity of its mortgage portfolio”, according to the IDB. Part of the financing will be disbursed in local currency to help develop soles-denominated mortgage portfolios in Peru.

Thumbprint ATMs, unveiled this month by Citibank in India, could also work in other parts of the world, including Latin America. “We are looking at how biometrics can be used more broadly as a way to provide lower income individuals access to banking services”, Robert Annibale, the Global Director of Citigroup’s Microfinance Group told LatinFinance. The new ATMs aid illiterate customers and have multiple language capabilities as well as voice navigation for balance inquiry, deposits and withdrawals. In India, the bank has set up a program, “Citibank Pragati” for microfinance customers, to try and increase participation in the banking system. Biometric ATMs are located at the bank’s partner microfinance institution’s offices and other areas near prospective customers.