Brazil’s Federal Integrated Water Sector Project (Interaguas) will receive a $107.4m technical assistance loan from the World Bank. The project is being coordinated by the Brazilian ministries of environment, national integration and cities, and national water agency.
Category: Loans
Posted inDaily Brief
BNDES Provides Fractional Jet Financing
Brazilian development bank BNDES is providing US-based fractional jet ownership company Flight Options with a 3-year, $167m financing package to purchase Phenom 300 business jets from Embraer. In 2007, Flight Options placed an order for one hundred Phenom jets, plus an option to purchase 50 more. The total value of the order exceeds $1.2bn. The company began taking delivery of the aircraft in May 2010 and currently has eight Phenom jets in service. Flight Options anticipates having 15 Phenom 300 jets in operation by the end of 2011. Both BNDES and Flight Options decline to provide the terms of the deal.
Posted inDaily Brief
CDB Prices Shorter FRN
The Caribbean Development Bank has priced a $175m 2-year FRN at Libor+30bp, coming with a smaller size and shorter tenor than initially expected. The borrower had been showing investors a $200m 5-year floating rate note. Some accounts simply did not like the floating rate structure and the L+30bp pricing. “It is just not very sexy at L+30bp with little or no prospects for a meaningful Fed rate increase over the next 2 years,” said one buyside analyst. The borrower had considered a fixed-rate issue but preferred floating rates to match its lending portfolio. BNP Paribas acted as lead.
Posted inDaily Brief
DomRep Gets IDB Loan
The Dominican Republic will receive two loans totaling $78.3m from the IDB to support the construction of two wind farms. The projects will add a total of 80.6MW of production capacity. One loan is for $50.7m and will help fund the Parques Eolicos del Caribe project, being developed by a consortium including Gamesa, Grupo Delta Intur, Aquiles Mateo and Miguel Angel Muniz for a total construction cost of $127m. The second loan, for $27.6m, will go to Grupo Eolico Dominicano, a subsidiary of Spain’s Inveravante. That project is expected to cost $68.9m. Both loans were granted for a 15-year term with interest rates subject to market conditions.
Posted inDaily Brief
MMX Retains Itau, West LB
MMX has retained Itau and West LB as financial advisors to help the Brazilian mining major to structure an up to $1.8bn project financing package for the expansion of its Serra Azul unit. MMX says it will approach development banks and other institutions. MMX anticipates a 75%/25% split between debt and equity financing. The company says it plans to invest BRL4bn ($2.53bn) to upgrade and expand the iron project.
Posted inDaily Brief
Bladex Sets Spread On Loan
LatAm supranational bank Banco Latinoamericano de Comercio Exterior (Bladex) is heard offering Libor+110bp on a $150m 3-year loan after holding bank meetings in Tapei last week. Banks are being offered 90bp fees for tickets of $15m or more, 75bp for tickets of between $10m-$14m and 60bp for tickets of between $5m-$9m. Mizuho is acting as MLA and sole bookrunner, with Chang Hwa Commercial Bank coming in as MLA.
Posted inDaily Brief
Profertil Gets IIC Loan
Argentinean fertilizer company Profertil plans to secure a $70m, 5-year A/B loan from the Inter-American Investment Corporation (IIC). Proceeds will be used to finance an industrial plant, storage silos, and a jetty on the Parana River, in the municipality of Puerto General San Martin, Santa Fe Province. The IIC will syndicate part of the loan to attract other banks to provide Profertil with financing on the same terms. The IIC declines to disclose the interest rate. Profertil did not respond to inquiries. The loan will consist of an $8m A loan and a $62m B loan.
Posted inDaily Brief
Voto Unveils Loan Terms
Brazil conglomerate Votorantim Participacoes emerged with pricing details on its multi-tranche $2.65bn loan after holding bank meetings in Sao Paulo Monday. The $1.5bn 5-year senior revolving credit facility is tied to a ratings grid and out of the box is offering Libor+85bp if proceeds are used for trade purposes and Libor+90bp for working capital. The utilization fee, or the premium over the base margin, ranges from 0-30bp depending on how much is drawn. Meanwhile, the issuer is raising another $1.15bn with 7 and 8-year export pre-payment facilities, which offer an applicable margin of Libor+135bp and +150bp, respectively. The utilization fee is 0 if up to 33% is drawn, 15bp if between 33%-67% is drawn and 30bp for over 67%. HSBC and Societe General have been selected as joint lead arrangers and bookrunners on both the revolver and export-prepayment facilities. Bank of Tokyo Mitsubishi, BNP Paribas, JPMorgan and Santander hold the same positions on the revolver, while BAML, BBVA, Credit Agricole and Sumitomo are lead arrangers and bookrunners for the export prepayment facilities. The loan is expected to close by the end of July.
Posted inDaily Brief
OHL Gets BNDES Loan
OHL Brasil and its Autopista Litoral Sul subsidiary will receive a BRL810.1m ($519m) loan from development bank BNDES. The loan will go towards the operation, rehabilitation, improvement and infrastructure development for the Autopista Litoral Sul highway. The financing is divided into three parts. A BRL508.1m component amortizes over 12 years and paying TJLP+2.32%. A BRL298m tranche amortizes over 10 years and pays the same rate. A BRL4.1m portion amortizes over 10 years and pays the TJLP flat.
Posted inDaily Brief
Nemak to Refinance Bank Debt
Mexican car parts manufacturer Tendedora Nemak has launched a $1bn 5-year amortizing loan as it looks to refinance its entire stock of bank debt and better position itself to take advantage of growth in the auto sector. The company launched the loan last week in Mexico and New York via leads BBVA, HSBC, Citi and Santander. Nemak is also renegotiating terms on local bonds to release collateral, according to one banker. The loan is tied to a leverage grid and is offering L+300bp for leverage over 3x, +275bp for 2.5x-3x, +250bp for 2x-2.5x and +225bp. The company is expected to pay the higher end of such spreads as its leverage is still in the 3x plus range. Upfront fees are 50bp for $50m tickets and 30bp for $25m tickets. Pricing is considered aggressive for a company that struggled when the US economy slid into a recession, but given that it is part of the Alfa group, bankers are likely to be more forgiving. In May Fitch upgraded the credit’s long-term local rating to BBB (mex) from BB+ (mex), citing its improving financial situation. Nemak’s local 2017 bonds, which have a partial guarantee from Bancomext, were also upgraded, to A minus from BBB. Debt -to-Ebitda at the end of Q1 2011 was 3.6x, compared to 3.4x in 2010 and 5.5x in 2009, adds Fitch. Ebitda for 2010 was $364m, which was a 40% increase over 2009. The rating action also took in to account the company’s growing market share and the recovery of the car manufacturing industry.