Colombia’s central bank could deliver a 25bp rate hike at its next meeting due to the need to fight inflation according to Barclays,. “Further tightening beyond that point cannot be discarded,” the shop adds. CPI for May brought a significant upside surprise, with consumer prices increasing 0.93% mom, Barclays says. The YoY inflation rate was 6.4%, well above the central bank’s 3.5%-4.5% target. The board will meet again June 27.
Category: Bonds
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Bancomer Places MXP Bonds, Pipeline Builds
BBVA Bancomer has placed MXP2bn in 2012 floating-rate bonds at 8bp below the 91-day TIIE, in line with guidance. The bank’s DCM unit managed the mxAAA transaction, which supports the institution’s lending base. Separately, glassmaker Vitro is preparing to issue MXP700m in 2011 floating-rate bonds. The issue via Ixe is expected in June. Microfinance lender Financiera Independencia plans to issue up to MXP1bn in floating-rate notes, in a mxA rated transaction through HSBC and BBVA also expected for June.
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CAF, China Development Bank Team for Colombia Loan
Colombian cement company Cementos Argos will receive a $150m loan from CAF and the China Development bank, the multilateral says, to finance a new cement production line for Argo’s facility in Cartagena. Each of the financial institutions will provide $75m, CAF says. Price and tenor of the loan were not disclosed, a spokeswoman from CAF says, citing confidentiality issues. The operation is part of a strategic agreement signed between CAF and the Chinese institution to co-finance development projects in LatAm, the multilateral says.
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IDB Approves Loan for Brazilian City of Vitoria
IDB has approved a $39.1m 25-year loan for Vitoria, the capital of the Brazilian state of Espirito Santo, to improve living conditions. The deal is part of a credit facility for integrated urban development programs in municipalities in Brazil, IDB says. The financing comes with a 5-year grace period and priced over Libor, says an IDB official.
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IDB Lends $129m to Sao Paulo Subway
The IDB has approved $128.9m in financing for ViaQuatro, the company in charge of construction of Line 4 of the Sao Paulo metro. The public-private partnership includes a direct A loan in two phases for $128.9m and a syndicated B loan for approximately $213.2m. “The new line will add approximately 21% in additional capacity to the metro system and the benefits of the project are expected to be shared broadly across low, medium and higher income populations,” says the IDB. The public sector is responsible for construction, while supply of rolling stock and systems as well as operation and maintenance will come from ViaQuatro, which has a 30+ year concession. The sponsors of the project are Brazil’s Companhia de Concessoes Rodoviarias and Montgomery Participacoes, as well as Japan’s Mitsui.
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CAF approves Argentine Road Loan
Argentina will get a $110m 15-year loan from CAF to develop road infrastructure programs between Argentina and Paraguay, the multilateral says. The new roads will be located near the Yacireta dam, CAF says, close to the border between the two countries. CAF plans to open a representation office in Buenos Aires in Q3 this year, the multilateral says.
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Bahamas Gets IDB Financing
IDB has approved a $100m 25-year variable interest rate loan to the Bahamas for improvement in the road network of the nation’s most populous island, New Providence, which seats the country’s capital, Nassau. The new loan will have a 4-year grace period, IDB says.
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IDB Approves $200m Loan to Brazil’s Gerdau
The IDB has approved $200m in financing to Brazilian steel producer Gerdau Acominas to support its capital investment program. The multilateral will provide a $50m 9-year term loan with a 24-month grace period, and a disbursement period of 24 months at a spread over Libor, while up to $150m in financing will be provided in a syndicated loan with banks that have agreements with the multilateral. An IDB spokeswoman declined to comment on price.
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Bankers See Decent ABS Pipeline
Bankers are upbeat about the prospects for LatAm ABS deal flow for the rest of the year. Susan Romo, MD for LatAm DCM at Credit Suisse notes opportunity in Mexican infrastructure. “That’s something that the government is putting a huge focus on,” says the banker. This includes housing and tollroads. “Colombia and Peru are great countries that are soon going to be coming out with a lot of things on a cross border basis,” says Romo. She adds that financial institutions in Central America also provide opportunity for US ABS transactions. Peru’s Interbank is planning a $150m issue MT100 via Credit Suisse, say LatAm structured finance specialists, who anticipate a tenor of around 5 years. This is seen setting off a wave of similar Peru deals, including BBVA Continental and BCP. Merrill Lynch’s head of LatAm ABS, Reginald de Villiers, meanwhile notes supply for Brazil and Mexico tax and consumer assets deals and is working on a Brazilian auto securitization. There are also real estate opportunities, he adds. Brigitte Posch, head of Deutsche’s LatAm securitization group, which recently closed a dual tranche Peru tollroad deal, sees a decent pipeline for the rest of 2008, focused on Brazil, Mexico, Peru and Colombia. In Brazil, Posch highlights potential in tax claims, auto loans and consigned credit. The bankers were speaking at last week’s 7th Annual LatinFinance/Euromoney Securitization in Latin America Summit in Miami.
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IDB Approves Loan to Ecuador’s Pichincha
IDB has approved a $50m 6-year loan for Ecuador’s Banco Pichincha to increase financing for small business, micro enterprises and housing. An official of the multilateral declined to provide price terms on the facility, citing internal policies. A syndicated loan of $25m from foreign banks may complement the IDB transaction, the multilateral says. Additionally, the IDB’s Multilateral Investment Fund may provide up to $500,000 for a project to improve Pichincha’s methodologies and technologies to serve small businesses.