Portuguese wind energy company EDP Renovaveis has secured a BRL228m ($146m) long-term debt facility from Brazilian development bank BNDES as it looks to finance its 70MW Tramandai wind farm in the State of Rio Grande do Sul. The project is the first wind farm to be installed by EDPR in Brazil and has a 20-year PPA with utility Eletrobras. In 2008, EDPR and Energias do Brasil purchased 100% of shares of Brazil’s Central Nacional da Energia Eolica (Cenareel). Although no financial information on the transaction was disclosed, EDP at the time valued Cenareel’s wind farms and projects at BRL51m.
Category: Loans
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Haiti Receives IDB Grant
Haiti will receive two grants from the IDB totaling $90m to help finance construction of an industrial park in its northern region and to support efforts to modernize its energy sector. Since the 2010 earthquake, the IDB has approved more than $340m in grants and disbursed $255m. About 70% of Haiti’s population has no access to electricity. Available generation capacity stands at less than one-third of the estimated 500 megawatt demand.
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Nextel Mexico Gets CDB Loan
Nextel Mexico, the operating subsidiary of NII Holdings, has signed an agreement with China Development Bank for a $375m loan. The loan will fund the purchase of Huawei Technologies’ 3G network infrastructure. The financing has a final maturity of 10 years with a 3-year drawdown and a 7-year repayment term. The company did not return calls regarding the rate of the loan.
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Mexico Gets IDB Loan
Mexico’s Secretaria de Agricultura, Ganaderia, Desrollo rural, Pesca y Alimentacion (Sagarpa) will receive a $190m loan from regional development bank the IDB. The loan has a 25-year term, a 3-year grace period and a rate based on a Libor spread. According to the IDB, it will help finance productivity in the fish and fish-farming sector. The Mexican government will also kick in $74.4m for a total investment of $264.4m, benefiting around 5m agricultural producers. About $70m of the IDB loan will be dedicated to the control and eradication of agrofishing diseases.
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Colombia Gets World Bank Facilities
Colombia will receive $654m in three financing operations from the World Bank. The first operation is a $300m loan to stabilize the national budget and reduce the fiscal deficit to 3.2% of GDP by 2013, and has a 30-year term and a 5-year grace period. The second loan is for $350m to improve public transportation systems, and has a 15-year term and a 14.5-year grace period. The remaining $4m is a grant from the Global Environmental Facility to support programs that protect Colombia’s biodiversity.
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First Pre-Salt FPSO Loans Close
About $2bn worth of loan facilities have been closed over the last month to finance the construction of the first floating production, storage and offloading vessels (FPSOs) that will be used in Brazil’s offshore pre-salt oil fields. Most recently SBM Offshore, Queiroz Galvao, NYK and Itochu secured $1bn through a facility that pays 130bp-200bp over Libor during the life of the loan and offered a tenor of 10 years plus construction. Bookrunners and MLAs were ABN Amro, DNB-Nor, Mizuho, Natixis, SMBC, Standard Chartered, with ING acting as coordinator. Bank of Tokyo Mitsubishi and Rabobank were facility and documentation agents, respectively. Other MLAs were CIC, DBJ and Nordea. Bookruners were heard coming in with tickets of $100m plus, while MLAs participated with $50m-$75m tickets. This comes after an $812m facility was closed to finance the Guara FPSO, which is being sponsored by MODEC and Schahin Group. About 60% of the facility came from Japanese ECA JBIC, while the rest took the form of commercial bank loan, with Bank of Tokyo Mitsubishi, ING, Mizuho and SMBC participating. Margins came at just below 200bp over Libor on the 12-year facility.
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BNDES Extends Hydroelectric Financing
Brazilian development bank BNDES is extending BRL209.6m ($134.36m) in financing for the development of 6 hydroelectric plants. BRL84.4m will be allocated to the Juruena complex which comprises 5 plants with an output of 91.4MW in Mato Grosso. The remaining BRL125.6m will go to a special purpose company called Lightger, which is a subsidiary of Light SA and operates hydroelectric plant PCH Paracambi in Rio de Janeiro. It is expected to begin operating in December this year.
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Tuscany Expands In LatAm, Secures Loan
Canada-listed Tuscany International Drilling has agreed to acquire France’s Caroil as it looks to create a leading EM drilling company with activities in both Latin America and Africa. The transaction’s enterprise value based on closing June 20 stock prices has been calculated at $202m, before transaction costs, with a valuation EV/Ebidta ratio of 4.2x. Tuscany is paying for the acquisition with $120m in cash, 82.5m of common shares and another 27.5m of non-voting common share warrants. Both companies are involved in onshore drilling services in Latin America. At the same time, Tuscany is securing a $220m senior secured guaranteed loan and revolving credit facility through Credit Suisse, which is already heard sending invitations to banks to participate. Banks are being shown a $195m 5-year amortizer and a $25m 3-year revolver, both with margins of L+650bp, drawn in the case of the revolver. Proceeds are going toward the potential purchase ($115m) and the refinancing of existing debt at the Tuscany level ($80m). Jennings Capital Inc is acting as Tuscany’s financial advisors, while AM Capital is doing the same for seller Maurel & Prom.
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Pemex Launches $3.25bn Loan Refi
Pemex launched a refinancing of its $3.25bn dual-tranche loan Tuesday, with the aim of reducing margins by another 50bp.The Mexican state-owned oil company closed the original transaction in December, but had a change of heart after seeing telecom America Movil lock in just 50bp over Libor on a $2bn 3.5-year loan in April. After paying Libor+125bp on its $1.25bn 3-year revolver and plus 150bp on a $2bn 5-year term loan, Pemex was heard to be less than satisfied with the spreads it had achieved just four months earlier. According to a banker who received the invitation, the company intends to reduce the margin on the revolver to Libor+75bp, while also cutting the term loan to Libor+100bp. Commitments fees will also fall to 25bp from 45bp. Banks will be paid a 25bp amendment for rolling over existing debt, and 35bp for any new money. Commitments are due August 3 with the closing scheduled for August 5. A conference call is scheduled for Thursday. Some bankers are wondering how much interest will be generated, particularly some European banks with potential problems brewing back at home as well as investment banks that may have already sold most if not all of their holdings. .”Pemex could probably get cheaper funding in Mexico, so to the extent that banks want to match [their offer] they have access to other forms of funding,” says one banker. Participants on the original deal were Deutsche, Goldman Sachs, Intesa Sanpaolo, Credit Suisse, Societe Generale, Bayern LB, JP Morgan, SMBC, Bank of Tokyo-Mitsubishi, Mizuho, Morgan Stanley, Banco Santander, Natixis, EDC, DZ Bank, Bank of New York, and Scotia. Sumitomo came with a $250m ticket across both tranches, while Intesa took $150m in the 5-year loan and EDC received $75m in the 3-year, according to participants. Bookrunners on the 3-year were Barclays, BBVA, Credit Agricole and RBS. BBVA, BNP Paribas, Credit Agricole, Citi, HSBC and Inbursa were bookrunners on the 5-year. This time, BBVA Citi and Credit Agricole and HSBC
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Costa Rica Gets World Bank Loan
Costa Rica will receive a loan of up to $400m from the World Bank to support the country’s public universities. The lending program will also support Costa Rica’s infrastructure development initiatives.