Pemex has seen some banks fall by the wayside as it looks to amend a dual-tranche loan with tighter financing terms, but the transaction is on track to achieving its $3.25bn size, say bankers. Inbursa, the financial institution controlled by Mexican billionaire Carlos Slim, is heard to be one of the banks that have declined to participate. “They are price sensitive so for them it didn’t work and they declined,” says one banker. Banks that bought the loan in the secondary market were also expected to turn down the Mexican state-owned oil company’s offer. “The original price didn’t make sense, so that is why they bought it in the secondary,” the banker explains. That said, the amendment is expected to get final approval sometime this month, and the company is heard asking banks to roll over interest payments on a weekly basis until the new pricing has become effective. Pemex launched the refinancing of its $3.25bn dual-tranche loan in July, with the aim of reducing margins by another 50bp. It 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. 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 were due August 3 with the closing previously scheduled for August 5. 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
Category: Loans
Elecnor Closes Brazil Project Financing
Spanish infrastructure company Elecnor has obtained a BRL445m ($283m) financing package from BNDES to develop new wind power projects through its Enerfin subsidiary. The loan has a 16 year tenor and will go to finance three parks with a combined total of 150MW in generation capacity in the state of Rio Grande do Sul.
BNDES Provides BRL445.7m Wind Financing
Brazilian development bank BNDES has approved a BRL445.7m ($258.7m) financing package for 8 wind farms in Rio Grande do Sul. The 8 plants have a combined installed capacity of 150MW, requiring a BRL725.2m investment. The funds will go to three special purpose vehicles: Parques Eolicos Palmares (BRL153.6m), Ventos da Lagoa (BRL150.8m) and Ventos do Litoral Energia (BRL141.2m). All three are controlled by Enerfin do Brasil, a renewable energy subsidiary of Spanish infrastructure company Grupo Elecnor.
EDP Secures BNDES Financing
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.
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.
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.
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.
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.
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.
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.